Lithuanian minister expects decisions on Kaliningrad gas transit contract by year-end

VILNIUS - As the contract for gas transit through Lithuania to Russia's Kaliningrad region is set to expire at the end of this year, a decision on whether to extend it will be made by then, Energy Minister Zygimantas Vaiciunas said on Wednesday.

Vaiciunas noted that this is not just a bilateral matter and that it will be decided at the European level.

"The transit agreement is currently in place, and transit is ongoing. After that, of course, we'll look into possible options for extending it, but for now, it's still far too early to say," the minister told reporters after the State Defense Council's meeting.

"As I mentioned, for now, the transit is continuing. By the end of the year, we'll have concrete decisions," he added.

The energy minister did not answer the question of whether the option of not extending the gas transit contract with Russia is being considered.

"This issue isn't just about Lithuania and the Kaliningrad region - it's also an important matter for the European Union, and EU institutions will need to be involved in the process," he said, responding to a question about the conditions under which the contract could be extended.

According to the minister, Lithuania receives up to 20 million euros in revenue from gas transit to Kaliningrad annually, with payments being made for it.

"Historically, extensions or changes to such contracts have always taken place (...) at the end of the year. We'll see how it goes this year. But basically, today we're stating the fact that transit is taking place in accordance with the contracts, so we're behaving in a civilized manner," Vaiciunas said.

"As I mentioned, this is also a European agenda issue, so it's not just a bilateral matter between Lithuania and Kaliningrad," he added.

Lithuania's gas transmission system operator Amber Grid signed the 10-year gas transit contract with Russia's gas giant Gazprom in late December 2015. The previous contract was signed at the end of 1999.

Lithuania cut off Russian gas imports entirely in April 2022, except for transit via its territory to the Kaliningrad exclave.