aA
Lithuania's Energy Ministry has filed with a Lithuanian court a new lawsuit worth over 240 million euros against French energy group Veolia and Icor, a Lithuanian business group owned by natural persons, and persons related to these companies for the compensation of damage done to Lithuania, Vilnius Regional Court confirmed it to BNS on Thursday.
Veolia
Veolia
© AFP/Scanpix

The lawsuit was filed on Thursday.

The Energy Ministry said the lawsuit had been filed against companies belonging to the Veolia group, including Veolia Environnement, Veolia Energie International, Vilniaus Energija and Litesko, as well as the Icor group and persons related to these companies.

"It's an unprecedented case in Lithuania and it’s one of the first cases when a state is seeking compensation from a foreign investor and related persons through a civil procedure for damage done to the whole Lithuanian economy. Corruption, influence peddling, unfair and competition-restricting agreements do major economic and reputational damage to a state, therefore, the goal is to receive compensation for damage potentially done through these actions," the ministry said in a statement.

The new lawsuit is taking the demands Lithuania put forward in its counterclaim against Veolia at the International Center for Settlement of Investment Disputes (ICSID) in Washington in 2017 to national courts.

The lawsuit was filed with Vilnius Regional Court after almost all EU member states, including Lithuania and Estonia, signed an international agreement in May, demanding that investors and states withdraw their arbitration claims under bilateral investment protection agreements.

Lithuania is trying to prove that Veolia and Icor used illegal ways to secure lease contracts for heating business in a dozen of Lithuanian municipalities and illegally profited from heat consumers in 1999-2003.

Velia took Lithuania to the International Center for Settlement of Investment Disputes (ICSID) in Washington, claiming that its investment in Lithuania was undermined by unfair treatment by the country's politicians and regulatory authorities and was initially seeking 118 million euros in damages but the claim was later reduced to 79 million euros.

Veolia has not withdrawn its claim from ICSID so far and the hearing of this case has been adjourned until the spring of 2021.

It was reported in March that Vilnius Municipality and the municipal heat supply company, Vilniaus Silumos Tinklai (VST), are seeking 560 million euros from Veolia, a former operator of the Lithuanian capital's heating sector, at the Stockholm arbitration.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

No plans to relaunch Vilnius-Minsk passenger train services

Minsk wants to relaunch passenger train services to Vilnius, halted two years ago due to the...

Lithuania bans Russian gas imports except transit to Kaliningrad

Lithuania has passed a law banning Russian natural gas imports into the country, except for gas...

Key Lithuanian companies protected from Russian, Belarusian control

As Latvia last week banned Russian and Belarusian legal or natural persons from holding stakes in or...

Lithuania and Kazakhstan aim to develop economic ties and transport connections

Lithuania and Kazakhstan seek to increase the volume of bilateral trade through much closer...

Court: Belaruskali and LTG contract posed threat to national security

The contract between Belarusian fertilizer producer Belaruskali and Lietuvos Gelezinkeliai (Lithuanian...

Top news

Vytautas Landsbergis recognized as Lithuania's 1st post-independence head of state

The parliament on Thursday recognized Vytautas Landsbergis as the first head of state of Lithuania...

Sports ministers to discuss sanctions on Russian and Belarusian sports

Lithuanian Education, Science and Sports Minister Jurgita Siugzdiniene is on Thursday taking part in...

No plans to relaunch Vilnius-Minsk passenger train services

Minsk wants to relaunch passenger train services to Vilnius, halted two years ago due to the...

Anusauskas: NATO leaders approve decision on brigades on eastern flank

NATO leaders in Madrid on Wednesday confirmed their intention to increase the Alliance's forces...

Nauseda hopes for "good start" on air defense at NATO summit

Lithuanian President Gitanas Nauseda says the NATO summit in Madrid will give a good push to the...