Ethics Commission clears Lithuanian Prime Minister of conflict of interest suspicions

"In an effort to promote international economic cooperation of specific economic entities of Lithuania and aiming to secure their lawful interests, Kubilius acted in accordance to the authorization prescribed by the law. As there is no conflict of public and private interests in Kubilius' official operations, there are no reasons to list his behavior as inappropriate," the ethics watchdogs said.

The commission examined the possible conflict of interests in response to a request from Vytautas Gapšys, leader of Labor Party's political group. The party said Kubilius-led ruling Homeland Union – Lithuanian Christian Democrats had repeatedly received support from companies in Achemos Grupė (Achema Group), which also backed the party's individual candidates during elections. Labor MPs asked the ethics watchdog institution to examine whether Kubilius acted as Achema's protector when asking the Gazprom CEO to transfer the company to the Gazprom Export system.

According to the commission's finding, Achema and Achemos Grupė's companies had been donating money to various political parties in Lithuania, which gives no reasons to think that the Kubilius-led political force could be in any way an exclusive recipient of assistance from Achema and the rest of the concern.

"According to the information available to the commission, private interest of Kubilius and his close circle had no close links – for instance, shares, membership, positions, employment, etc. - with Achema, AB, or Achemos Grupė concern," the Chief Official Ethics Commission said.

Gazprom vice-president and Gazprom Export CEO Alexander Medvedev confirmed in early February that Achema was buying gas at a lower price than Lietuvos Dujos (Lithuanian Gas). According to the media, the new contract with Achema was concluded for 10-15 years.

Achema is Lithuania's largest consumer of natural gas, which buys a third of all gas needed by Lithuania when operating at full capacity. Gas is the main element of nitric fertilizers, consequently, gas prices have a direct effect upon financial results of the Jonava-based company.

Opposition agrees

The Lithuanian parliament's opposition leader Algirdas Butkevičius of Social Democrats has expressed consent to the Chief Official Ethics Commission's conclusion, which suggests that Prime Minister Andrius Kubilius' letter to Gazprom CEO was in line with the law on public and private interests.

In Butkevičius' words, it is the prime minister's duty to take care of Lithuanian business, and this specific case lacked some publicity to avoid misinterpretations.

"The prime minister must think about business and people. If business is developed in Lithuania and Achema, which seems to be consuming a third of natural gas, it (would be unwise) to remain indifferent and refrain from talking to businesses and gas suppliers," Butkevičius said in an interview to Žinių Radijas news radio on Wednesday.

"We should understand that there should be synergy among business, politics and science. (...) However, such a letter requires a meeting to discuss and declare the prime minister's plans to write the letter, there needs to be publicity to avoid certain interpretations. But we did not have the publicity but de facto I think that the prime minister committed an offense in this case," the Social Democrats' leader said.