If, hypothetically, Russia imposed a gas embargo on Lithuania and the country would have to look for alternatives at a 50-to-100-percent surcharge, then in the first year of such an embargo Lithuania's economy would lose LTL 1.6-1.9 billion (EUR 467-550 million), which is about what the country has invested in the pipeline connections with Poland and the LNG terminal.
Dujotiekis
© Reuters/Scanpix

The figures came from a study on Vulnerability of Lithuanian Businesses to Changes in Prices of Energy Resources 2014, conducted by the international audit, tax and consultations company KPMG.

"We found that in the case of a potential Russian gas embargo, losses of Lithuanian business would be very similar to the amounts which the state invests in gas supply diversification projects. It means that we basically invest the same money in energy security as we would otherwise potentially lose in a year due to political circumstances. Taking into account a potential loss due to a possible embargo of several years, it becomes obvious that we have avoided a huge financial risk," KPMG partner Rokas Kasperavičius said.

According to him, such comparison allows to look at the importance of investment projects from a different angle and proves that billions allocated for gas supply diversification projects are really worth it.

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