Prime Minister Andrius Kubilius (right) speaks with energy minister Arvydas Sekmokas. The Lithuanian government's has made a concerted effort to weaken Gazprom's hold over the Lithuanian heating market, and the prime minister's office said last week's demand could be a form of retaliation.

VILNIUS — On Friday Lithuanian Prime Minister Andrius Kubilius downplayed Gazprom’s demand of €140 million to recover lost profits from the Kaunas Heat and Power Plant, saying the government is merely a third party.

Meanwhile Kubilius’ office said Gazprom would lose if it took the case to court and said the Russian energy giant was likely playing games in light of the Lithuanian government’s policy of diversifying the heat market, thereby reducing Gazprom’s control of the market.

Gazprom, the Russian 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 the

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