Lietuvos Dujos Corporate Activities Investigation

01.07.2013 Lietuvos Dujos Corporate Activities Investigation

TGS Balticrepresented the Lithuanian Ministry of Energy in a dispute before the courts of all instances regarding issues related to investigation of the gas pricing tariffs applied by the national gas company Lietuvos Dujos, controlled by OAO Gazprom, when supplying gas to Lithuania.

The firm conducted initial legal due diligence of the company’s documentation in order to substantiate the claim and prepared the methodology for the investigation of the commercial activities and pricing structure applied by the company.

The case is the first corporate investigation into the affairs of a major company in Lithuania. The firm faced a unique challenge to analyse and prove that the management of Lietuvos Dujos failed in their fiduciary duties to the company in its relations with Gazprom, the major shareholder of Lietuvos Dujos, when negotiating the terms and conditions for import and transit of natural gas. The firm also gathered evidence and arguments that the development of certain construction projects had an adverse effect on Lietuvos Dujos. Due to the complex nature of the matter, examination of the case in the court of first instance lasted more than 18 months, during which period 15 court hearings were held.