Russians eager for closer contact

VILNIUS - On Feb. 7, Kazimiera Prunskiene, MP for the tiny New Democracy Party, organized a conference on Lithuanian-Russian relations in one of the halls of the Lithuanian Parliament. Prunskiene was LithuaniaÕs prime minister from the countryÕs declaration of independence in March 1990 to January 1991 and is well known abroad. So it was easy for her to contact and invite the superstars of Russian business.

Arkady Volsky, president of the Russian IndustrialistsÕ and BusinessmenÕs Union, RAO YES Board Chairman Anatoly Chubais, and LUKoil Vice President Yury Storozhev, were among the delegation of the 40 or so great sharks of Russian business.

During the meeting, the businessmen on both sides could not hide their disappointment in the decline of Lithuanian-Russian economic relations.

Volsky pointed out that Lithuanian exports to Russia made up only 7 percent of LithuaniaÕs export total in 2000, while in 1993 it was 21 percent. Imports from Russia make up 28 percent of LithuaniaÕs total imports. The lionÕs share of this is oil and gas.

ÒWe canÕt mix politics and economics. The governments of both countries should not make obstacles to business. We are especially interested in the export of Russian oil via the Butinge offshore terminal and other transit via Lithuania. We are also interested in the import of Lithuanian electronics,Ó Volsky said.

Volsky complained about the strict visa regime that exists between Lithuania and Russia. He said that this does not encourage a good business relationship. Angrily, he added that the Lithuanian Embassy in Moscow had questioned him as though they suspected he had plans to stay in Lithuania permanently.

The Russians also complained about VilniusÕ reluctance to allow them to take part in the privatization process in Lithuania. ÒWe need less ideology and more pragmatism in our relations,Ó Chubais said. He repeated this phrase three times during the meeting and emphasized that this is also the position of Russian President Vladimir Putin.

Bronislovas Lubys, president of the Lithuanian IndustrialistsÕ Confederation and one of the countryÕs richest businessmen, said ÒIt is very good that Lithuanian exports as well as imports to the European Union have reached 50 percent of the total. But it would be super-stupid to abandon the markets of Russia, Central Asia and Ukraine.Ó

Prunskiene said that she would welcome the arrival of Russian capital to the Mazeikiu Nafta oil refinery. ÒIt would be the best solution to invite a Russian company to buy shares in Mazeikiu Nafta and guarantee the long-term supply of oil,Ó Prunskiene said.

But she emphasized that the Lithuanian state must maintain control over the Mazeikiu Nafta complex. The American oil company Williams International should be left to take care of its management and modernization, she said. Prunskiene spoke in favor of the construction of a gas pipeline running between Russia and Western Europe via Lithuania.

Arturas Skardzius, parliamentary chairman and a Social Liberal MP, encouraged mutual cooperation despite the fact that both countries have a different geopolitical agenda. He also bravely raised the subject of NATO.

ÒLithuania will be a member of the European Union, but at the same time we want positive cooperation with Russia. This would guarantee stability. The people of the new generation will cooperate and not fear LithuaniaÕs membership in NATO,Ó Skardzius said.

At the same time he emphasized that Russia had imposed 30 percent customs taxes on imports from Lithuania and that the Russian Duma had not ratified treaties on the safety of investments and the avoidance of double taxation between both countries.

Viktoras Uspaskich, an independent MP and chairman of LithuaniaÕs parliamentary economy committee, said that French, American, German and British capital is fighting for the Russian market while Lithuanians are not showing enough enthusiasm in the eastern direction.

ÒAlmost all Lithuanians know Russian and half of them know English. This makes Lithuania an ideal bridge between West and East,Ó he said.

Juozas Raiselis, director of the Lithuanian ceramics factory Dvarcioniu Keramika, said that Russian businessmen are wondering why Lithuanian goods often come to Russia via the countries of the EU. Lithuanians can quite easily export their goods directly without leaving a profit for the EUÕs re-export masters.

Prunskiene said it was a pity that Lithuanians were afraid of contact with Russian businesspeople because of any negative public opinion backlash.

Lithuanian Parliamentary Chairman Arturas Paulauskas was expected to make a speech but changed his plans without explanation and sent Skardzius to the meeting instead. Paulauskas reportedly stayed at home on Feb. 6 and 7 when the Russians were in town. He was Òworking with documents,Ó according to his press secretary. Lithuanian government officials were also absent.

On the eve of the meeting, a party was thrown for the Russian guests. On the Lithuanian side only the leaders of both the right- and left-wing opposition were visible. Conservative Party leaders Vytautas Landsbergis and Andrius Kubilius and Social Democratic Party Chairman Algirdas Brazauskas came by.

ÒLandsbergis and Brazauskas were not afraid to come, while the current state leaders were obviously afraid to show up,Ó Mykolas Aleliunas, vice president of the Lithuanian IndustrialistsÕ Confederation, said sadly.