Klaipedos Nafta AB - Notification on material event

The Seimas of the Republic of Lithuania decided to grant a state guarantee to the European Investment Bank

On 2 July 2013, the Seimas of the Republic of Lithuania decided:                
1. To grant a state guarantee to the European Investment Bank (hereinafter, the 
 EIB) regarding the loan in the amount of EUR 81,093,605 granted to AB Klaipėdos
 Nafta (hereinafter, the Company) for the period up to 20 years at the interest 
 rate set by the EIB for financing the investment project “Liquefied Natural Gas
 Terminal” (hereinafter, the LNGT), the state assuming guarantee obligations    
 regarding repayment of the loan of EUR 81,093,605 and payment of interest.     
2. To establish that the state guarantee regarding the above-mentioned loan     
 shall also be valid when:                                                      
2.1. the LNGT project implemented by the Company and/or the works and/or the    
 assets forming it are transferred and/or the LNGT activity performed by the    
 Company is moved to a subsidiary directly 100 percent controlled by the Company
 under the procedure set by legal acts;                                         
2.2. all the rights and obligations of the Company in connection with the       
 implementation of the LNGT project and/or the works and/or the assets forming  
 the project and/or the  LNGT activity, i.e. all the assets, including the      
 mortgage indicated in paragraph 3.1 of this notification, all the obligations, 
 including the rights and duties regarding the loan specified in paragraph 1 of 
 this notification and all the rights to the LNGT funds, are transferred to the 
 above-mentioned subsidiary;                                                    
2.3. the Republic of Lithuania maintains direct control over at least 67 percent
 of the shares of the Company and the Company maintains 100  percent of the     
 shares of the subsidiary specified in paragraph 2.1 above throughout the entire
 period of the loan specified in paragraph 1.                                   
3. To establish that the state guarantee can be signed when:                    
3.1. the Company mortgages/pledges future real property of the LNGT and         
 concurrently related items, i.e. the LNGT link and its technologic commodity,  
 which will be created in the future and/or which will come into the ownership  
 of the Company or the subsidiary specified in paragraph 2.1 above in the       
 future, upon the implementation of the LNGT project, by conditional mortgage   
 (senior pledge) to the Ministry of Finance of the Republic of Lithuania for the
 amount no less than 100 percent of the loan specified in paragraph 1 in order  
 to secure the fulfilment of contractual obligations;                           
3.2. the Company pays a guarantee fee equal to 0.1 percent of the loan amount   
 specified in paragraph 1;                                                      
3.3. a confirmation is received from the European Commission that the state     
 guarantee to be granted to the EIB is not regarded as state aid provided for in
 Article 107(1) of the Treaty on the Functioning of the European Union or is    
 regarded as state aid compatible with the internal market according to Article 
 107(3) of the Treaty.                                                          




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