However, the breach of its contractual obligations by A/S Ventbunkers under the year 2010 contract caused significant damage to LITASCO. Without any justification, in breach of its contractual obligations A/S Ventbunkers stopped issuing telegrams confirming the goods acceptance in December 2010. That resulted in a significant change in the composition and the quality of the fuel oil and the resulting discrepancy in the quality of the blends and LITASCO SA contractual obligations.

Nevertheless, LITASCO SA had been taking active steps to minimize harm to all parties involved,that are become de-facto hostages due to A/S Ventbunkers breaching their contractual obligations.
In this spirit starting since December 2010 LITASCO SA repeatedly offered constructive solutionsin order to overcome the consequences of A/S Ventbunkers’ breach of its contractual obligationsunder the 2010 contract, and sought the upkeep of the normal dialogue between companies,including calls for direct negotiations.

One of the latest LITASCO SA initiatives, calling for a meeting with the Ventbunkers Board and Chairman of the Supervisory Board in Geneva or in Riga / Ventspils, was submitted more than a week before the possibility of such negotiations has been confirmed by the Chairman ofthe Supervisory Council Mr. Rudolf Meroni on the 24th of January, probably after the current Ventbunkers Board realized that their illegal actions, namely the repeatedly declared intention to sell the goods owned by LITASCO SA and/ or load a ship unrelated to cargo owner, in violation of applicable laws of Latvia and the international law, has brought the situation in deadlock and lead to anescalation of the damage to all parties involved.

Despite all the LITASCO SA initiatives based on the goodwill and seeking amicable solution of the situation to compensate for the enormous damage inflicted by A/S Ventbunkers direct actions violating their contractual obligations under the 2010 contract, the current Ventbunkers’ board together with the Chairman of the Ventbunkers Council Mr. Rudolf Meroni has unleashed acampaign of slander in the press, defaming LITASCO SA and LUKOIL Group in general. LITASCO SA reserves the right to file lawsuits against all parties to protect its business reputation.

A meeting has taken place on the 25th of January between LITASCO Management and 2 members of the Supervisory Council of Ventbunkers.
Unfortunately, no members of the management board of Ventbunkers, responsible for commercial activities, were present at this meeting.
As a result of this situation, LITASCO offered to hold another meeting with Ventbunkers management later this week, in which at least 2 members of the Ventbunkers management board should take part.
LITASCO is still open for discussion and we believe that LITASCO and Ventbunkers will be able to find a solution in order for Ventbunkers to fulfil all their 2010 contractual obligations and finalize all issues Ventbunkers is currently facing.