

Currently released so far... 12553 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
APECO
ASEC
AMGT
AFIN
APER
ACABQ
AORC
AEMR
AF
AE
AR
AGMT
AU
AY
ABLD
AS
AG
AJ
APCS
AX
AM
AMEX
ATRN
ADM
AMED
AFGHANISTAN
AZ
AL
ASUP
AND
ARM
ASEAN
AFFAIRS
AQ
ATFN
AMBASSADOR
AODE
APEC
ACBAQ
AFSI
AFSN
AO
ABUD
AC
ADPM
ADCO
ASIG
ARF
AUC
ASEX
AGAO
AA
AER
AVERY
AGRICULTURE
AIT
AADP
ASCH
AORL
AROC
ACOA
ANET
AID
AMCHAMS
AINF
AMG
AFU
AN
ALOW
ASECKFRDCVISKIRFPHUMSMIGEG
ACS
ADANA
AECL
ACAO
AORG
AGR
BEXP
BR
BM
BG
BL
BA
BTIO
BO
BP
BC
BILAT
BK
BU
BD
BRUSSELS
BB
BF
BBSR
BIDEN
BX
BE
BH
BT
BY
BMGT
BWC
BTIU
BN
CA
CASC
CFED
CO
CH
CS
CU
CE
CI
CM
CMGT
CJAN
COM
CG
CIS
CVIS
CR
CKGR
CHR
CVR
COUNTER
CIA
CLINTON
CY
CPAS
CD
CBW
COUNTERTERRORISM
CITEL
CDG
CW
CODEL
COUNTRY
CLEARANCE
COE
CN
CARICOM
CB
CONDOLEEZZA
CWC
CACS
CSW
CIDA
CIC
CITT
CONS
CL
CACM
CDB
CDC
CAN
CF
CJUS
CTM
CBSA
CARSON
CT
CLMT
CBC
CEUDA
CV
COPUOS
CTR
CROS
CAPC
CAC
CNARC
CICTE
CBE
ECON
ETRD
EIND
ENRG
EC
ELAB
EAGR
EAID
EFIS
EFIN
EINV
EUN
EG
EPET
EAIR
EU
ELTN
EWWT
ECIN
ERD
EI
ETTC
EUR
EN
EZ
ETC
ENVI
EMIN
ET
ENVR
ER
ECPS
EINT
EAP
ES
ENIV
ECONOMY
EXTERNAL
EINN
EFTA
ECONOMIC
EPA
EXBS
ECA
ELN
ETRDEINVECINPGOVCS
ENGR
ECUN
ENGY
ECONOMICS
ELECTIONS
EIAR
EINDETRD
EREL
EUC
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
ENERG
EFIM
EAIDS
EK
ETRDECONWTOCS
EINVETC
ECONCS
EUNCH
ESA
ECINECONCS
EUREM
ESENV
EFINECONCS
ETRC
ENNP
EAIG
EXIM
EEPET
EINVECONSENVCSJA
EUMEM
ETRA
ERNG
ETRO
ETRN
EINVEFIN
ICTY
IN
IS
IR
IC
IZ
IA
INTERPOL
IAEA
IT
IMO
IO
IV
ID
IRAQI
IEA
INRB
IL
IWC
ITU
ICAO
ISRAELI
ICRC
IIP
IMF
IBRD
ISLAMISTS
ITALY
ITALIAN
ILO
IPR
IQ
IRS
IAHRC
IZPREL
IRAJ
IDP
ILC
ITF
ICJ
IF
ITPHUM
INMARSAT
ISRAEL
IACI
IBET
ITRA
INR
IRC
IDA
ICTR
IGAD
INRA
INRO
IEFIN
INTELSAT
INTERNAL
INDO
ITPGOV
KWMN
KSCA
KDEM
KTFN
KIPR
KCRM
KPAL
KE
KPAO
KPKO
KS
KN
KISL
KFRD
KJUS
KIRF
KFLO
KG
KTIP
KTER
KRCM
KTIA
KGHG
KIRC
KU
KPRP
KMCA
KMPI
KSEO
KNNP
KZ
KNEI
KCOR
KOMC
KCFC
KSTC
KMDR
KFLU
KSAF
KSEP
KSAC
KR
KGIC
KSUM
KWBG
KCIP
KDRG
KOLY
KAWC
KCHG
KHDP
KRVC
KBIO
KAWK
KGCC
KHLS
KBCT
KPLS
KREL
KCFE
KMFO
KV
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KVPR
KTDB
KSPR
KIDE
KVRP
KTEX
KBTR
KTRD
KICC
KCOM
KO
KLIG
KDEMAF
KMRS
KRAD
KOCI
KSTH
KUNR
KNSD
KGIT
KFSC
KHIV
KPAI
KICA
KACT
KHUM
KREC
KSEC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCMR
KPIN
KESS
KDEV
KNAR
KNUC
KPWR
KENV
KWWMN
KWMNCS
KPRV
KOM
KBTS
KCRS
KNPP
KWNM
KRFD
KVIR
KTBT
KAID
KRIM
KDDG
KRGY
KHSA
KWMM
KMOC
KSCI
KPAK
KX
KPAONZ
KCGC
KID
KPOA
KIFR
KFIN
KWAC
KOMS
KCRCM
KNUP
KMIG
KNNPMNUC
KERG
KTLA
KCSY
KJUST
MOPS
MARR
MASS
MNUC
MX
MCAP
MO
MR
MI
MD
MK
MA
MP
MY
MTCRE
MOPPS
MASC
MIL
MTS
MLS
MILI
MAR
MU
MEPN
MAPP
MTCR
MEPI
MZ
MEETINGS
MG
MW
MAS
MT
MCC
MIK
ML
MARAD
MV
MERCOSUR
MTRE
MPOS
MEPP
MILITARY
MDC
MQADHAFI
MUCN
MRCRE
MAPS
MEDIA
MASSMNUC
MC
NZ
NZUS
NL
NU
NATO
NP
NO
NIPP
NE
NH
NR
NA
NPT
NI
NSF
NG
NSG
NAFTA
NC
NDP
NEW
NRR
NATIONAL
NT
NS
NASA
NAR
NV
NORAD
NSSP
NK
NPA
NGO
NSC
NATOPREL
NW
NPG
NSFO
OPDC
OTRA
OIIP
OREP
OVIP
OSCE
OEXC
OIE
OPRC
OAS
OPIC
OTR
OMIG
OSAC
OFFICIALS
OECD
OSCI
OBSP
OFDA
OPCW
ODIP
OFDP
OES
OPAD
OCII
OHUM
OVP
ON
OIC
OCS
PHUM
PREL
PGOV
PINR
PTER
PARM
PREF
PM
PE
PINS
PK
PHSA
PBTS
PRGOV
PA
PORG
PP
PS
PGOF
PL
PO
PARMS
PKFK
PSOE
PEPR
PAK
POL
PPA
PINT
PMAR
PRELP
PREFA
PALESTINIAN
PBIO
PINF
PNG
PMIL
PFOR
PUNE
PGOVLO
PAO
POLITICS
PHUMBA
PSEPC
PTBS
PCUL
PROP
PNAT
PNR
POLINT
PGOVE
PROG
PHALANAGE
PARTY
PDEM
PECON
PROV
PHUMPREL
PGOC
PY
PCI
PLN
PDOV
PREO
PGIV
PHUH
PAS
PU
POGOV
PF
PINL
POV
PAHO
PRL
PG
PRAM
POLITICAL
PARTIES
POLICY
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PGGV
PHUS
PSA
PHUMPGOV
PEL
PSI
PAIGH
POSTS
PBT
PTERE
RS
RU
RW
RM
RO
RP
REGION
RSP
RF
RICE
RCMP
RFE
RIGHTS
RIGHTSPOLMIL
ROBERT
RUPREL
RELATIONS
ROOD
REACTION
RSO
REPORT
SENV
SNAR
SCUL
SR
SC
SOCI
SMIG
SI
SP
SU
SO
SW
SY
SA
SZ
SAN
SF
SN
STEINBERG
SG
ST
SIPDIS
SNARIZ
SNARN
SSA
SK
SPCVIS
SOFA
SAARC
SL
SEVN
SARS
SIPRS
SHUM
SANC
SWE
SHI
SYR
SNARCS
SPCE
SYRIA
SEN
SH
SCRS
SENVKGHG
TRGY
TSPL
TPHY
TSPA
TBIO
TI
TW
THPY
TX
TU
TS
TZ
TC
TH
TT
TIP
TO
TERRORISM
TRSY
TINT
TN
TURKEY
TBID
TL
TV
TNGD
TD
TF
TP
TFIN
TAGS
TK
TR
UNSC
UK
UNGA
UN
US
UNHRC
UG
UP
UNMIK
UNHCR
UE
USTR
UNVIE
UAE
UZ
UY
UNO
UNESCO
USEU
USOAS
UV
UNODC
UNCHS
UNFICYP
UNEP
UNIDROIT
UNDESCO
UNDP
UNPUOS
UNC
UNAUS
USUN
UNCHC
UNCHR
UNCND
UNICEF
UNCSD
UNDC
USNC
USPS
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 05VILNIUS781,
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05VILNIUS781.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
05VILNIUS781 | 2005-07-28 11:14 | 2011-02-03 00:00 | CONFIDENTIAL | Embassy Vilnius |
Appears in these articles: http://www.novgaz.ru/data/2011/004/11.html |
This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 03 VILNIUS 000781
SIPDIS
DEPT FOR EUR/NB, EUR/RUS, EB/ESC, INR
E.O. 12958: DECL: 07/27/2015 TAGS: ECON ETRD PREL PGOV EPET ENRG RS LH
Classified By: Economic Officer Scott Woodard for reasons 1.4 (b) and ( d)
¶1. (U) This cable contains an action request. Please refer to paragraph 13.
------- SUMMARY -------
¶2. (C) Yukos is likely to sell its majority share in the only oil refinery in the Baltic countries in the near future. Several of the world's largest oil companies have expressed interest in purchasing Yukos's portion of Mazeikiu Nafta. A consortium controlled by Gazprom appears to be in the strongest position to buy the refinery. Other companies with a strong Russian connection, like TNK-BP or a ConocoPhillips/Lukoil consortium, are still in the running. According to the shareholder agreement, the GOL can veto a prospective buyer. The GOL would like to sell Lithuania's largest corporate asset to a Western-owned or at least Western-oriented company, but Russia's control of the crude oil that supplies the refinery gives it the ability to tilt the playing field in favor of firms favored by the Kremlin. END SUMMARY.
-------------------------- MAZEIKIU NAFTA: THE BASICS --------------------------
¶3. (U) Mazeikiu Nafta (MN) is the only oil refinery complex in the Baltics. In addition to the actual refinery, the corporation also owns the oil terminal port facility at Butinge on the Baltic coast and the Birzai pipeline, which connects the refinery to a pipeline in Belarus that delivers the refinery's supply of Russian crude oil. MN is Lithuania's biggest industrial facility and generates some 10 percent of the country's GDP. It produced revenue in 2004 of approximately LTL 7.7 billion (USD 2.7 billion), more than double the revenues of Lithuania's next largest company. Its pre-tax profits last year were more than LTL 900 million (USD 310 million). Yukos is the majority shareholder of MN, holding 53.7 percent of shares through a company registered in the Netherlands. The GOL is the other major shareholder, with a 40.6 percent stake. The remaining 5.7 percent of shares are actively traded on the Vilnius bourse and are held by various individuals and institutions.
--------------------------------- YUKOS APPEARS READY TO SELL . . . ---------------------------------
¶4. (U) Yukos International UK BV bought MN from Williams International (a U.S.-based company) in 2002 (ref B). Last March, Yukos's tax and legal problems in Russia began hampering its ability to provide MN with the amount of oil stipulated in its agreement with the GOL (ref A). Sensing that MN would soon be put up for sale, high-level executives from several of the world's major oil companies, including TNK-BP, Gazprom, KazMunayGaz, PKN Orlen, Lukoil, and ConocoPhillips visited Lithuania in May and June. Neither Yukos nor the GOL has announced a date for the sale.
--------------------------------------- . . . BUT NOT WITHOUT THE GOL'S CONSENT ---------------------------------------
¶5. (C) Yukos cannot simply sell MN to whomever it wishes, even though it is the majority shareholder. Vice Minister of Economy Nerijus Eidukevicius, who is also a member of MN's management board, told us that MN's shareholder agreement gives the GOL's representatives on the board authority on par with the majority shareholder for all major decisions. Specifically, this means that Yukos must seek GOL consent for any deal worth more than LTL 10 million (USD 3.4 million), giving the GOL an effective veto on the sale of Yukos's majority holding.
--------------------- WHAT DOES YUKOS WANT? ---------------------
¶6. (C) Jurgis Vilemas, who directed the Lithuanian Energy Institute for more than 20 years and informally advises Prime Minister Algirdas Brazauskas on energy matters, told us that what Yukos wants is simple: as much money as possible. Some press articles have speculated that Yukos may also be in a hurry to sell its shares before legal action in the Netherlands or Lithuania (see para 10) possibly freezes its assets or otherwise hinders its room to maneuver.
----------------------- WHAT DOES THE GOL WANT? -----------------------
¶7. (C) Vice Minister Edukevicius told us that the GOL will want to renegotiate with a potential buyer some of the technical agreements that tie the GOL, MN, and a new majority shareholder together. He implied that the GOL would prefer a company willing to operate MN in a manner that respected the GOL's interests -- most notably, ensuring a constant supply of crude oil for the refinery.
¶8. (C) Vilemas echoed this point, saying that the GOL needs a buyer who can ensure a steady supply of oil, but stressed that it also wanted a company with a "Western style" of management. He said that MN had done well under Yukos's leadership, which had increased MN's abilities to produce different types of refined products and opened new markets. He also said that TNK-BP would be the GOL's first choice as a buyer of MN because it offered the best combination of Western management and guarantee of supply.
¶9. (C) The head of the Social Democratic parliamentary group, Juozas Olekas, told us that the Prime Minister (also a Social Democrat) would put economic considerations first. He said that the PM believed that the economic realities of globalization would strongly influence any buyer of MN and prevent it from becoming a tool to be used for political ends. In his view, this means that the PM would be looking for a company that will continue MN's development and increase its ability to create new products and find new markets.
----------------- THE RUSSIA FACTOR -----------------
¶10. (C) Dr. Gitaras Nauseda, an industry analyst and adviser to the CEO of one of Lithuania's most prominent banks, told us that the Russian government has significant leverage in determining who will buy MN. He stressed that since Russia controls the supply of oil, any buyer not to the Kremlin's liking faces the very real prospect of being cut off.
¶11. (C) Nauseda also told us that the Russian government's recent letter to the Netherlands and Lithuania asking the governments of those countries to freeze Yukos's assets because of the company's tax liabilities in Russia is most likely a lightly veiled threat intended to scare off any non-Russian buyers. The legal status of these requests is not clear at present, but the GOL stated last week that it had received the letter and that its lawyers were examining the possible legal implications. He said that it was probably not a coincidence that the letters to the Dutch and Lithuanian governments came soon after Gazprom's announcement that it wished to expand its oil interests.
--------------------------------------- GOL STILL WILLING TO CONSIDER AMERICANS ---------------------------------------
¶12. (C) Olekas told us that potential buyers still have an opportunity to influence the GOL's decision. He mentioned that ConocoPhillips did not manage to convince Prime Minister Brazauskas that it was a serious contender when its officials visited Lithuania in June. He said that the company still had time to make a stronger pitch.
¶13. (C) Vice Minister Eidukevicius expressed some interest in a ConocoPhillips bid, but said that he would like to understand the company's partnership with Lukoil better. He asked specifically if the USG could provide information clarifying the relationship between these two companies. (ACTION REQUEST: While we will work our own sources, we would appreciate any information from the Department on this relationship, especially if ConocoPhillips decides to bid on Yukos's shares. END ACTION REQUEST.)
------------------------------ POTENTIAL BUYERS KEEPING QUIET ------------------------------
¶14. (C) The visits of oil company executives to date have been generally quick and quiet, with brief reports appearing in the press only the day after. (A lobbyist working for ConocoPhillips advised us of that company's visit just before it occurred.) Only one potential buyer has requested a meeting with emboffs. Shawn McCormick, Vice President of International Affairs for TNK-BP, met with us twice during visits to Lithuania. During his second visit on May 26 he told us that TNK-BP officials had again met with Prime Minister Brazauskas, who gave the officials the clear impression that TNK-BP was his primary choice as a buyer of MN. McCormick told us that TNK-BP was definitely interested in acquiring MN, but said that his company "would not overpay," noting that anything more than USD 600 million to USD 800 million probably would be too much.
--------------------------------------------- --- DON'T BELIEVE EVERYTHING YOU READ (IN THE PRESS) --------------------------------------------- ---
¶15. (SBU) Many articles in the local media recently have contained incorrect information about Mazeikiu Nafta, the number of shares potentially for sale, the various technical agreements governing MN's management, and the importance of obtaining a majority share. It appears that these journalists erred mainly because of ignorance of a fairly complicated subject or failure to do proper fact-checking. Another likely factor is that people with an interest in a particular outcome may be feeding the press biased or incomplete information.
------- COMMENT -------
¶16. (C) The GOL faces a serious dilemma. Its leaders want a Western-oriented firm to purchase Yukos's shares. If Russia chooses to apply all the pressure it can on behalf of Gazprom or another Russian company, however, it will be very difficult for any other company to convince the GOL that it can guarantee the crude oil supply necessary for Mazeikiu Nafta to function properly. Kelly