Lithuania demands "fair price" from Gazprom

VILNIUS - Lithuania's energy minister Thursday issued Gazprom an ultimatum, saying that he would take the Russian gas giant to court if it did not provide the country with a "fair price".

"Should Gazprom refuse to remedy the breach and set a fair price for natural gas the Ministry of Energy is determined to refer the dispute to the Stockholm arbitration for the application of the sanctions provided by the Privatisation agreement," the ministry said in a press release.

"The Ministry of Energy is expecting that Gazprom shall act in good faith and remedy the breach voluntarily so that no formal dispute resolution procedure will have to be opened."

Gazprom began charging Lithuania higher rates for gas after the country took steps to break its monopoly on the gas industry.

The ultimatum came just days after the European Commission assured Lithuania that in the future Russia would not have preferential treatment in the gas industry -- a concession that Prime Minister Andrius Kubilius said was "excellent for Lithuania".

Lithuania and Gazprom have been in an ongoing dispute over gas prices. Earlier this year, Lithuania lodged a formal complaint with the EU over the issue.