Lithuania: Gazprom Reluctant to See Energy Company Split

Lithuania's main natural gas company, Lietuvos Dujos, announced May 28 that it would split into three separate units. The split is in compliance with a provision of the European Union's Third Energy Package that requires natural gas companies to unbundle their sales, transport and production operations.

The move will reduce the control that Russian energy giant Gazprom has over Lietuvos Dujos, particularly in the area of transportation, because control of transit operations will be placed in the hands of the Lithuanian state. This marks an important victory for Vilnius, which has been looking to diversify away from Russian natural gas supplies and trying to gain pricing concessions from Moscow.