Russia halted crude oil deliveries to Lithuania via Druzhba pipeline about a year ago, after its Federal Environmental, Technological and Nuclear Oversight Service (Rostekhnadzor) found more than 8,000 defects in the line. Pipeline operator Transneft said at the time that it would repair Druzhba if it was economically feasible.
Lithuania has the Baltic States’ only refinery, at Mazeikiu Nafta, the previous owners of which have been Yukos and the Lithuanian government. In 2006, Poland’s PKN Orlen bought the plant. The refinery posted the first-quarter 2007 loss of $39.09 million because of delivery disruption, and Lithuanian President Valdus Adamkus has threatened to block the talks on new agreements between Russia and the EU if oil supplied through the Druzhba are not resumed.