Klaipedos Nafta - Notification on material event

AB Klaipėdos Nafta received a ruling of the Court of Appeal of Lithuania regarding the judgement of the court of first instance of 20 May 2013 in the case between UAB Naftos Grupė and the Company

AB Klaipėdos Nafta (the “Company”) received a ruling of the Court of Appeal of
Lithuania of 17 June 2014  in the case according to statement of claim of the
claimant UAB Naftos Grupė against the Company for the indemnification for
losses of LTL 17 million allegedly incurred by the claimant, for return of
surplus oil products allegedly belonging to the claimant and held by the
Company to UAB Naftos Grupė and for recognition the termination of Service
Contract No. 12-12-2005, dated 22 December 2004 (the “Contract”), due to the
Company's supposed fault. 

The above-indicated ruling of the Court of Appeal of Lithuania partially
reversed the judgment of the Vilnius Regional Court of 20 May 2013, whichexamined this case as the court of first instance, as follows: 

(i) the provision of the Contract, giving the claimant UAB Naftos Grupė
exclusive rights to transhipping vacuum gas oil, was admitted to be invalid
while contradicting the imperative norms of Competition Law; 

(ii) damages in the amount of LTL 2,988,341.14 and 6 percent annual interest on
the awarded amount for the period from initiation of the proceedings (18 April
2011) till full execution of the court decision were awarded from the
respondent (the Company) for the benefit of the claimant, that is only about
half of the sum, which was awarded in favour of UAB Naftos Grupė by the
decision of the court of first instance and the whole sum, claimed by UAB
Naftos Grupė as compensation for loss of business, was fully rejected by the
Court of Appeal, also 

(iii) litigations costs were reallocated proportionally between the parties to
the proceedings. 

The said ruling of the Court of Appeal of Lithuania came into effect at the
moment of its adoption, but it can be appealed against in the Supreme Court of
Lithuania under the cassation procedure. 

In the evaluation of the management of the Company, that part of the court
ruling, which rejects the counterclaim of the Company to UAB Naftos Grupė in
the case (on compensation of the losses of LTL 42,627,155 incurred by the
Company while executing the Agreement) and leaves the above indicated amount of
damages to be indemnified for by the Company to UAB Naftos Grupė, is
groundless. Therefore, the Company is going to file a cassation appeal with the
Supreme Court of Lithuania. 




         Mantas Bartuška, Director of Finance and Administration Department
(+370 46) 391 763