REPUBLIC OF LITHUANIA

LAW ON Enterprises AND FACILITIES of Strategic Importance to National Security and Other Enterprises Important to Ensuring National Security

10 October 2002 No IX-1132

(As last amended on 1 February 2008 – No X-1447)

Vilnius

Article 1. Purpose of the Law

This Law has the purpose of specifying the enterprises and facilities (including those to be established) which are of strategic importance to national security, which must belong to the State by the right of ownership and in which, and the conditions under which, a proportion of the capital may be held by the private national and foreign capital meeting the criteria of European and trans-Atlantic integration provided the power of decision is retained by the State, also specifying other enterprises of importance to ensuring national security.

Article 2. State Enterprises and the Facilities Belonging to the State by the Right of Ownership

1. The following state enterprises shall be of strategic importance to national security:

1) (Repealed on 10 June 2006);

2) state enterprise Giraitė Armament Factory (Giraitės ginkluotės gamykla);

3) state enterprise Ignalina Nuclear Power Plant (Ignalinos atominė elektrinė);

4) state enterprise Kaunas Airport (Kauno auerouostas);

5) state enterprise Klaipėda State Seaport Authority (Klaipėdos valstybinio jūrų uosto direkcija);

6) state enterprise Lithuania Post (Lietuvos paštas);

7) state enterprise Oil Product Agency of Lithuania (Lietuvos naftos produktų agentūra);

8) state enterprise Air Navigation (Oro navigacija);

9) state enterprise Palanga International Airport (Tarptautinis Palangos oro uostas);

10) state enterprise Vilnius International Airport (Tarptautinis Vilniaus oro uostas);

11) state enterprise Automagistralė;

12) state enterprise Alytus Region Roads (Alytaus regiono keliai);

13) state enterprise Kaunas Region Roads (Kauno regiono keliai);

14) state enterprise Klaipėda Region Roads (Klaipėdos regiono keliai);

15) state enterprise Marijampolė Region Roads (Marijampolės regiono keliai);

16) state enterprise Panevėžys Region Roads (Panevėžio regiono keliai);

17) state enterprise Šiauliai Region Roads (Šiaulių regiono keliai);

18) state enterprise Tauragė Region Roads (Tauragės regiono keliai);

19) state enterprise Telšiai Region Roads (Telšių regiono keliai);

20) state enterprise Utena Region Roads (Utenos regiono keliai);

21) state enterprise Vilnius Region Roads (Vilniaus regiono keliai);

22) state enterprise Lithuanian Inland Waterways Authority (Vidaus vandens kelių direkcija).

2. The following facilities belonging to the State by the right of ownership shall be of strategic importance to national security:

1) hydraulic engineering facilities, quays, navigation ways and channels, navigation facilities and other objects of the infrastructure of Klaipėda State Seaport;

2) roads of national significance according to a list approved by the Government;

3) flight control system facilities;

4) public railways.

3. The state enterprises indicated in paragraph 1 of this Article may be transformed into public limited liability companies or private limited liability companies or reorganised in the ways specified by the Civil Code only subject to passing of an appropriate law by the Seimas.

4. The facilities indicated in paragraph 2 of this Article must belong to the State by the right of ownership and may be leased or transferred under a contract of loan for use or transferred for management, use and disposal by the right of trust only to the state enterprises indicated in paragraph 1 of this Article and to the enterprises indicated in paragraph 1 of Article 3.

Article 3. Enterprises in Which a Proportion of the Capital May be Held by the Private National and Foreign Capital Meeting the Criteria of European and Trans-Atlantic Integration, Provided the Power of Decision is Retained by the State and Facilities

1. The following enterprises in which a proportion of the capital may be held by the private national and foreign capital meeting the criteria of European and trans-Atlantic integration, provided the power of decision is retained by the State, shall be of strategic importance to national security:

1) public limited liability company Detonas;

2) public limited liability company Lithuanian Railways (Lietuvos geležinkeliai);

3) public limited liability company Lithuanian Radio and Television Centre (Lietuvos radijos ir televizijos centras);

4) public limited liability company Jonava Granary (Jonavos grūdai);

5) public limited liability company Lithuanian Energy (Lietuvos energija);

6) public limited liability company Šilutė Polders (Šilutės polderiai);

7) (Repealed on 26 April 2007);

8) public limited liability company Klaipėda Oil (Klaipėdos nafta);

9) the national investor indicated in Section Four of the Republic of Lithuania Law on the Nuclear Power Plant (hereinafter referred to as the “national investor”);

10) AB Kruonis Pumped Storage Plant (Kruonio hidroakumuliacinė elektrinė);

11) AB Kaunas Hydro Power Plant (Kauno hidroelektrinė).

2. The facilities of the public limited liability company Lithuanian Energy which form an electricity transmission network of the voltage of 110 kV and above as well as appurtenances thereof shall be of strategic importance to national security.

3. In this Law, the power of decision of the State shall mean that in the enterprises indicated in paragraph 1 of this Article, with the exception of the public limited liability company Lithuanian Energy, the State must hold over ½ of the voting shares of these enterprises. The power of decision of the State in the public limited liability company Lithuanian Energy shall mean that the State and, upon establishment of the national investor and contribution to its authorised capital as a non-monetary contribution of the shares of the public limited liability company Lithuanian Energy belonging to the State by the right of ownership, the national investor shall hold over 2/3 of the voting shares of this enterprise.

4. The foreign capital meeting the criteria of European and trans-Atlantic integration shall make up a proportion of the capital of the enterprises indicated in paragraph 1 of this Article under the same conditions as the private national capital in accordance with the procedure laid down by laws of the Republic of Lithuania.

5. The power of decision of the State must be preserved in the enterprises operating after transformation or reorganisation and indicated in paragraph 1 of this Article.

6. When liquidating (also on the grounds of bankruptcy) the enterprises indicated in paragraph 1 of this Article, the immovable and pledged property belonging to them, also the property indicated in paragraph 2 of this Article may be sold or otherwise transferred only to state institutions of the Republic of Lithuania, state enterprises or the enterprises a proportion of the capital of which is held by the private national capital and the capital meeting the requirements of European and trans-Atlantic integration, though the State or a municipality holds over ½ of the voting shares of these enterprises.

7. Repealed on 26 April 2007.

8. Upon establishment of the national investor and contribution to its authorised capital as a non-monetary contribution of the shares of the public limited liability company Lithuanian Energy, the public limited liability company Eastern Distribution Networks and the public limited liability company VST accounting for over 2/3 of shares and votes at the general meeting of shareholders of each company, the national investor and bodies thereof must operate so that the national investor would under any circumstances hold at least 2/3 of shares and votes of the public limited liability company Lithuanian Energy, the public limited liability company Eastern Distribution Networks and the public limited liability company VST at the general meeting of shareholders of each company. Where the activities pursued by the public limited liability company Lithuanian Energy, the public limited liability company Eastern Distribution Networks and the public limited liability company VST are separated, transferred or conveyed when reorganising, transforming the companies or otherwise, the national investor must, directly or indirectly, hold at least 2/3 of shares and votes at the general meeting of shareholders in the companies holding by the right of ownership the electricity transmission network of the Republic of Lithuania, electricity distribution networks, also in the companies pursuing the activities of electricity transmission, the electricity market operator, electricity distribution and the public electricity supplier.

Article 4. Enterprises of Importance to Ensuring National Security

1. In addition to the enterprises and facilities indicated in Articles 2 and 3 of this Law, the following enterprises shall also be of importance to ensuring national security:

1) public limited liability company Mažeikiai Oil Refinery (Mažeikių nafta);

2) public limited liability company Lithuanian Natural Gas Company (Lietuvos dujos);

3) public limited liability company Western Distribution Networks (Vakarų skirstomieji tinklai);

4) public limited liability company Eastern Distribution Networks (Rytų skirstomieji tinklai);

5) public limited liability company Lithuanian Power Plant (Lietuvos elektrinė);

6) public limited liability company Lithuanian Telecom (Lietuvos telekomas);

7) public limited liability company Achema;

8) the enterprises providing the services of water supply and sewage disposal according to a list approved by the Government of the Republic of Lithuania.

2. With a view to ensuring national security, laws may set forth additional requirements for the operation of the enterprises indicated in paragraph 1 of this Article.

3. The enterprises providing the services of water supply and sewage disposal and indicated in subparagraph 8 of paragraph 1 of this Article must belong by the right of ownership to the state or a municipality, or the state or the municipality must hold over 75 per cent of voting shares in these enterprises.

Article 4¹. Enterprises and Facilities of Particular Strategic Importance to National Security and the Special Security Measures Ensuring the National Security Interests as Applied to Them and to Investors

1. Of particular strategic importance to national security shall be the interconnections of the power system of the Republic of Lithuania with the power systems of the Republic of Poland and the Kingdom of Sweden indicated in the Republic of Lithuania Law on the Nuclear Power Plant, the project implementing company and the new nuclear power plant.

2. The Government of the Republic of Lithuania and the national investor, which shall control the principal part of the Lithuanian power system through its subsidiaries, shall implement a strategic goal of Lithuania, namely, complex integration of the power system of the Republic of Lithuania into the electricity transmission systems of the European Union member states and internal electricity markets.

3. In implementing the strategic goal provided for in paragraph 2 of this Article, the Government and state institutions, when adopting resolutions and decisions and concluding agreements, managers of State-owned shares, when making decisions, concluding agreements and exercising the rights of shareholders in a company of the national investor or successor to its rights belonging to the State by the right of ownership, also in the subsidiaries established by these companies, shall ensure that:

1) in seeking to attain the goal of its activity, the national investor implement the principal task of the power system of the Republic of Lithuania – to provide Lithuanian consumers with electricity for an unlimited period of time and in an independent, safe and reliable manner;

2) the strategic objects provided for in the National Energy Strategy – the new nuclear power plant, the electricity transmission connections with the Republic of Poland and the Kingdom of Sweden ensuring efficient and sufficient electricity exchanges between the power system of the Republic of Lithuania and the systems belonging to the Union for the Co-ordination of Transmission of Electricity (UCTE) as well as to the Organisation for the Nordic Transmission System Operators (NORDEL) – be constructed without delay;

3) technical solutions and parameters of the new nuclear power plant and electricity transmission interconnections with the Kingdom of Sweden and the Republic of Poland be selected so that the principal part of the reserve capacities required for the nuclear power plant be received from the European Union member states and that the conditions for the synchronous operation of the power system of the Republic of Lithuania with UCTE be met;

4) the power system of the Republic of Lithuania be prepared for immediate synchronous interconnection with the UCTE system as soon as establishment of electricity network interconnections is completed, technical measures are implemented and the actions required for Lithuania to join UCTE are performed;

5) in view of participation of Lithuanian and foreign investors in the capital of the company implementing the project of the new nuclear power plant, the vital interests of national security and the State be protected, and the criteria of European and trans-Atlantic integration be applied to selection of participants in implementation of the project of the nuclear power plant. 

4. The project implementing company, the new nuclear power plant, interconnections of the power system of the Republic of Lithuania with the power systems of the Republic of Poland and the Kingdom of Sweden and investors shall be subject to the special security measures ensuring the national security interests. The special security measures ensuring the interests of national security shall be the conditions and requirements specified in legal acts and international treaties and intended to protect the vital interests of the State (security of the State, sovereignty, economic power, public health and safe environment, maintenance of the public order, etc.) with a view to preventing the acts and omissions posing a threat and eliminating the causes and conditions of their occurrence.

5. The following special security measures ensuring the national security interests shall be stipulated in legal acts:

1) physical safety and information security requirements;;

2) diversification of security of energy supply and primary sources of energy, long-term fuel supply contracts and accumulated necessary fuel stocks;

3) conformity of technologies of the nuclear power plant to established safety requirements and technology supply alternatives;

4) ensuring of reserves of the power system of the Republic of Lithuania;

5) ensuring of the financing of decommissioning of the nuclear power plant, waste management;

6) the right of the management bodies of the project implementing company to independently take prompt management decisions within the sphere of their competence where this is required to ensure the safety of the nuclear power plant.

6. The project implementing company and investors shall also be subject to other special security measures specified in the Republic of Lithuania Law on the Nuclear Power Plant, the Republic of Lithuania Law on Nuclear Energy, the Republic of Lithuania Law on Radiation Protection and other legal acts.

7. The concepts used in this Article shall be understood as they have been defined in the Republic of Lithuania Law on the Nuclear Power Plant;

Article 5. Safety of Enterprises and Facilities of Strategic Importance to National Security and Other Enterprises of Importance to Ensuring National Security

1. The Government or an institution authorised by it shall set forth requirements for the physical safety and information security of enterprises and facilities of strategic importance to national security as well as of other enterprises of importance to ensuring national security taking account of peculiarities of the activity of the enterprises.

2. Heads of the enterprises and facilities of strategic importance to national security as well as other enterprises of importance to ensuring national security shall be responsible for implementation of the requirements of physical safety and information security provided for in paragraph 1 of this Article.

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS