European Union competition authorities have raided companies active in the rail freight sector in the Baltics, on suspicion they were involved in a cartel, the EU's executive arm said on Thursday. Rail operators in Lithuania and Latvia confirmed the raids, with state-owned Lithuanian Railways saying the investigation stemmed from a complaint by Polish oil group PKN Orlen.
"Lithuanian Railways views these claims as groundless," the company said. PKN Orlen, which owns a Lithuania-based refinery, has complained about rail tariffs for transporting oil products as well as a move by Lithuanian Railways to close down the shortest route to neighbouring Latvia.
Latvian Railway company Latvijas Dzelzcels said it had also been raided and that it was not informed about the details of the investigation. The Estonian railway operator was not immediately available for comment. The European Commission said earlier on Thursday its officials undertook unannounced inspections at the premises of companies active in the rail freight sector and related products industry in Baltic countries, without naming the firms.
"The Commission has reason to believe that the companies concerned may have violated EU antitrust rules that prohibit cartels and restrictive business practices and/or the abuse of a dominant market position," it said. PKN, which bought Lithuanian refiner Mazeikiu Nafta - now Orlen Lietuva - in late 2006, blamed Lithuania for being unhelpful in its efforts to lower logistics costs after Russia shut crude oil supplies via pipeline. The company then had to switch to more expensive seaborne deliveries of crude.
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