Viewing cable 06VILNIUS1017
Title: LITHUANIAN REFINERY BOARD RESIGNS AFTER FAILING TO

IdentifierCreatedReleasedClassificationOrigin
06VILNIUS10172006-11-13 14:52:00 2011-08-30 01:44:00 CONFIDENTIAL Embassy Vilnius
VZCZCXRO6537
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHVL #1017 3171452
ZNY CCCCC ZZH
P 131452Z NOV 06 ZDK
FM AMEMBASSY VILNIUS
TO RUEHC/SECSTATE WASHDC PRIORITY 0756
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0024
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
C O N F I D E N T I A L VILNIUS 001017 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/NB, EUR/NCE, EB/ESC 
STATE PLEASE PASS TO FEDERAL TRADE COMMISSION 
DOE FOR HARBERT 
DOC FOR 4231/IEP/EUR/BOHIGIAN 
NSC FOR GRAHAM, MCKIBBEN AND COEN 
TREASURY FOR LOWERY, LEE AND COX 
 
E.O. 12958: DECL: 11/12/2016 
TAGS: ENRG EPET PREL LH RS PL VE
SUBJECT: LITHUANIAN REFINERY BOARD RESIGNS AFTER FAILING TO 
OUST AMCIT GENERAL DIRECTOR 
 
REF: VILNIUS 1008 
 
Classified By: POL/ECON Section Chief Rebecca Dunham for reasons 1.4 (b 
) and (d) 
 
¶1. (C) Nelson English, the Amcit General Director of Mazeikiu 
Nafta (MN), Lithuania's only oil refinery, called us late on 
November 9 to say that that MN's board of directors had 
resigned after failing to oust him at a board meeting earlier 
that evening.  He said that the GOL's three representatives 
to the seven-member board avoided attending the meeting, 
preventing a quorum.  (The other four members, appointed by 
Yukos, recently have been acting inconsistently with the 
wishes of the company's management and stockholders -- see 
reftel.)  According to English, the newly resigned board 
members have up to 14 days to reconsider their resignations. 
He said, however, that he was working with Yukos 
International's corporate office in London to convene MN's 
supervisory board in order to replace those four management 
board directors before they had the opportunity to reinstate 
themselves. 
 
¶2. (C) In a meeting with us November 10, English said that 
Tomas Gizas, the only board member to actually attend the 
board session in person (the others participated by 
telephone), told him as he departed:  "Congratulations, 
Nelson, and good luck -- you're going to need it."  English 
said that he believed this to be a thinly veiled warning that 
those who want to scuttle the Polish oil company PKN Orlen's 
purchase of MN are not about to give up, but will simply try 
to use another tactic, which may include a public smear 
campaign against English or even an attempted prosecution on 
trumped-up charges. 
 
¶3. (C) English also said that he was close to a 
three-to-five-year supply arrangement with Venezuela.  He 
said that he knew he was in contact with "the right people" 
(including a relative of President Chavez), but that there 
appeared to be some kind of political problem within the 
Venezuelan state oil company (PDVSA) that was distracting the 
company's management from finalizing the deal.  English also 
said that he believed that a Venezuelan supply deal for MN 
would be very helpful in moving PKN's purchase of MN towards 
closure. 
 
¶4. (C) Comment:  The resignation of the board members is good 
news for PKN's plan to purchase MN.  Unfortunately, that deal 
seems unlikely to close until at least February, providing 
the opportunity for new obstacles to arise. 
CLOUD