Gazprom bought the Kaunas Heat and Power Plant in 2003 and now alleges that the Lithuanian government violated terms of the deal.

VILNIUS — The Lithuanian government received a letter Thursday from Russian oil and gas giant Gazprom demanding €140 million in compensation for what they say are losses from a Kaunas power and heat facility.

Gazprom, the state-owned energy company, bought the Kaunas Heat and Power Plant from the Lithuanian government in 2003 for 116.5 million litai (€33.7 million) with the condition of making a set margin on energy prices until 2018. Since then laws affecting the costing out of heat have allowed

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