BALTIC NEWS Recommended reading from the Baltic states

3Feb/110

LITASCO begins misleading propaganda

In their article dated Febuary 3rd, 2011 - the Baltic Course reports on LITASCO's strange behaviour in their conflict with AS Ventbunkers. LITASCO - a daughter company of russian LUKOIL used to be the major client of AS Ventbunkers.

The history of this conflict reads like crime novel. In 2010 Ventbunkers requests the payment of 20 mio. $ for services from LITASCO. LITASCO says, they have already paid - but are not willing to disclose where the money went. The money has never arrived on the Ventbunkers bank accounts. Mr. Aivars Lembergs also says, that there might have been special agreements so that the money went "elsewhere".

As Ventbunkers found, that the prices charged to LITASCO have been to low anyway, they started a contract with a new client for 2011 - and told LITASCO that the contract will not be continued. This will cost LITASCO a lot of turnover and profit, as they lose the capacity of the Ventpils terminals.

So LITASCO tried to force Ventbunkers to continue the contract - by blocking their terminal facilities. How this is possible? That was an easy task for LITASCO - they just did not pick up their last deliverey end of December 2010 which was stored in the Ventbunkers tanks and ready for being loaded onto a LITASCO ship. LITASCO kept their ship away from the harbor - and waited. The flow of oil stopped, the Ventbunkers terminal got closed. The thousands of railcars coming from Russia for the next shipment could not be unloaded into the Ventbunkers tanks - as they were still filled to top.

This is business the russian style. Brute force in dealing with business partners. Also these undisclosed payments shed a strange light onto LITASCO and LUKOIL. If these payments were really made - as black payments to some "agents", then LITASCO really is in trouble.

If they disclose where the money went, they will bring their "agents" into trouble. The only solution we can see, is , that they now say "oops, we forgot to pay - and did not notice until now" - and pay the missing 20 mio. to Ventbunkers. But where will the money come from? Would LITASCO pay twice - or reclaim the amount from their "agents"?

An interesting story. We will see what happens.

Read the article in Baltic Course.

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