BCC Paper No. 44

Energy

Spring 2013 Increasing energy prices – a growing headache for Lithuanian business, reveals KPMG study

issue No. 44

Asta Grabinskė, AVIVA Lietuva

Jos Stratford

Pillar II pension – ensure quality retirement

Brits in Lithuania

page 4

page 7

This BCC Paper is kindly sponsored by page 8

Lithuania on the way to EU Presidency The year 2013 is of special importance to Lithuania: on 1 July, for the first time in history, we will be taking over the Presidency of the Council of the EU. I trust that at the beginning of our Presidency, we will be able to welcome Croatia as a new member in the EU family, which will from then on consist of 28 members.

Lithuania, following the restoration of independence, took a firm decision to become a full member of the European Union, which came true on 1st May 2004. It was not only a strategic achievement, but also a commitment to be a proactive, reliable and contributing member state. The Presidency of the EU Council will most likely become Lithuania’s greatest contribution to the EU policy-making and implementation.

Algirdas Butkevičius, Prime Minister of Lithuania

Challenges of the Lithuanian Energy Sector Interview with Lithuanian Minister of Energy

Lithuania will preside over the EU Council at a very special time – with less than a year before new European Parliament elections, that is, at the close of its five-year term. This is the period during which the European Commission needs

In the hot seat, Jaroslav Neverovič, Minister of Energy for the Republic of Lithuania, has kindly agreed to answer a few questions explaining the challenges Lithuania faces in the energy sector. We would like to thank the Minister for taking the time to answer these questions.

Minister, could you briefly outline the new government's strategic goals?

Our main priority is to become part of a common European energy market based on transparent rules. So initially, we will seek to become an integral part of Europe in terms of energy. To do that we must create competitive markets in all Lithuanian energy sectors and build the necessary infrastructure.

To be prepared for synchronization with European energy systems, we have to finish such strategic energy interconnection projects as the

continued on page 3 >

Rise and Fall of Small Solar Energy Plants in Lithuania. Recent Amendments of the Law of Renewable Energy Resources

By Robert Juodka and Evaldas Petraitis, VARUL Law Firm price was 1.44 LTL/kWh. Such high electricity prices were based on the high investment costs necessary to develop a solar plant of up to 30 kW, which back then was about LTL 300,000 (approx.

EUR 87,000), and the buy off period of investment accordingly was 8-9 years.

gas and electricity connections with Poland, the electricity connection with Sweden and implement the third Energy Package.

Jaroslav Neverovič

to put into action many projects that have received the approval of the current Parliament.

Consequently Lithuania will have to work to ensure agreement between all 27 member states on almost a hundred proposals put forward by the Commission. This is much more compared to other Presidencies having held the Presidency at the time when the parliamentary term was only just starting. Altogether Lithuania's Presidency agenda will most likely have to deal with about five hundred questions in total, of which one hundred and fifty are of the highest priority.

The outcome that we expect from competitive markets is consumer friendly energy prices for Lithuanian citizens.

Why is a physical, functioning infrastructure interconnecting between EU countries so important to Lithuania?

We cannot possibly speak of a fully-fledged single EU energy market with common rules, until we have a physical, functioning infrastructure interconnecting between EU countries. That is why the decision that was made by EU officials in 2011 – to create a common European energy market by the end of 2014 and to eliminate energy islands by the end of 2015 – is of the utmost importance to Lithuania.

Lithuania is currently dependent on a single energy source. This leads to a high level of insecurity and high energy prices. Interconnection with Europe will mean the end of our energy isolation, integration to the EU single energy market and diversification of the energy supply. This will result in consumer friendly energy prices and that is a high priority for Lithuania. continued on page 4>

Robert Juodka, MBA MRICS, VARUL Law Firm

For some 10 years Lithuania has been taking steps to promote the development of renewable energy resources, including solar energy. However, since the cost price of developing solar power plants was initially very high, investors and other participants in the energy sector did not rush into it and development was slow.

In 2011 Lithuania adopted its new Law on Renewable Energy Resources (LRES), on the basis of which, the promotion of solar energy production under the so called ‘feed-in-tariff’ system was established. Under it, small solar plants below 30 kW of capacity were granted a very high electricity procurement price in advance, for a fixed period of 12 years. In 2011, the fixed price under which electricity produced by such small plants would have to be bought up by the grid was 1,63 LTL/kWh (in comparison the ‘market’ price for consumers at that time was approx.0.45-0.50LTL kWh, and the price at the electricity exchange approx. 0.15-0.17 LTL kWh). In 2012 the fixed

However, in 2012 a newer cheaper method for production of silicium (which is the main component for a solar panel) was invented and the cost of production of solar panels and solar plants dropped almost twice (to approx. LTL 160,000180,000 (EUR 46,000-52,000). Thus, the buy off period was reduced to just 5 years. This resulted in a boom of applications to permit development of such small solar plants, (almost 15000 of them were lodged with the Ministry of Energy prior to January 20131), which (if developed) would have meant that ~450 MW of subsidized solar electricity production capacity (at the high cost price of 1.44 LTL/kWh) would be created. Here it must be said that the initial total capacity planned by the Ministry of Energy for such subsidized solar electricity was only 10 MW (i.e. 45 times less!).

1 From the total ~15,000 applications to permit development of solar plants lodged at the Ministry of Energy by January 2013 (i.e. before adoption of amendments of the laws), 5199 applications concerned development of small solar plants of up to 30kW, and ~10,000 application were not yet reviewed because of insufficient staff at the Ministry.

continued on page 5 >

BCC paper Spring 2013

2 Members’ Discount Scheme Updates

As a member of the British Chamber of Commerce and BCC Membership Card holder you can benefit from the following discounts and special offers:

The BCC Paper is a quarterly English language newspaper, with a print run of 4000 copies per issue, covering a wide variety of subjects related to business between the UK and Lithuania. Every edition focuses on a different business sector. It also provides an outlet for the chamber and its members to publish their latest news and offer their professional views on current political, economic, European and cultural topics. The paper is widely circulated: available from Lithuania’s two main airports, business centres, hotels and the UK and Lithuanian embassies, in addition to being sent to all BCC members and business contacts, meaning it offers premium advertising space to companies wishing to engage with the Lithuanian business community.

Next publication date: July 2013 BCC paper team: Editor in Chief – Chris Butler

Quantum Capital - 10% discount for all services and free of charge first consultation NEW! AVIS rent a car – 25 % discount for shortterm rentals within Lithuania and the Baltic states; special quotes for outbound and chauffeur drive rentals; tailor-made full leasing and fleet management offers; corporate Charge and Avis Preferred cards.

Please note that these discounts are only valid when making direct orders through the AVIS Lithuania office. Ąžuolyno klinika, a private hospital – 15% discount for medical consultations Baltic American Medical & Surgical Clinic – 10% discount for all medical consultations Baltic Surveys – 10% discount for market research services in the Baltic states Best Western Hotel Vilnius & Best Western Central – 10 % discount from the best available rate for accommodation and 10 % discount from the A la Carte Menu.

Biuro Pasaulis – 22% discount for stationery Bunnahabhain – 20 % discount for Bunnahabhain; 10 % discount for other products. Discount is valid in all Mineraliai Vandenys stores.

Calenberg – 15 % discount for local and international moving, relocation and transportation services for private and corporate accounts Cormack Consultancy Group: 15% discount for market research, export strategy, partner search services in the Baltics, Russia, Romania, India, Italy and the UK Delta Management Solutions – FREE Recruitment; FREE Replacement; ZERO Admin Fee for 1st Month (Waived) for Temporary Staffing Services.

Finreda – 10 % for corporate, accounting, audit organisation, legal, financial, tax and business consulting, and translation services Hotel Vanagupė & Amber SPA ( UAB Eskom) – 20 % discount of rack rates for accommodation in the hotel; 10% discount on food and beverages in the hotel restaurant, terrace and bar; 10% discount for SPA procedures

ISM - 5 % for the open-programs (seminars, academies, long-term trainings) Kernaves Bajoryne, Conference and Leisure Centre – Free use of the outdoor tennis court facilities, 10% discount on guest houses for double rooms and separate wooden houses, 10% discount on events and 10% discount on saunas.

Law firm JURIDICON - 20% discount for services, no hourly fee.

Le Meridien Vilnius Hotel – 20% discount for “Green fee” at the V Golf Club; 10% discount for one time entrance to the Health Club + SPA Oasis; 15% discount for 3, 6 and 12 month Health Club + SPA Oasis memberships; 20% discount for combined Golf + Health Club + Spa “Oasis” Membership. 15% discount in restaurant “Le Paysage”; 10% discount from the best available rates of accommodation.

London International School of Languages - 15% for all our services and an initial promotional class or consultation for free Motieka & Audzevičius, Law firm – free of charge first consultation for BCC members ODONTIKA, Dental surgery – 15% off all treatment & 5% off prosthetic work Publicum – 10% for all services and free of charge first consultation!

Editor – Alistair Day-Stirrat, e-mail: Alistair.Day-Stirrat@odontika.com Members section - Jurga Prakapaitė, e-mail: jurga@bccl.lt , themed articles, advertising – Sandra Kundrotė, e-mail: Sandra@bccl.lt , tel. +370 5 2690062 Proofreading – Shaun Harvey Advert sizes and prices Prices Size

Size mm

BCC Member rate

Back page 1000 cm²

273x366

1250 LTL

363 €

1560 LTL

453 €

Full page right 1000 cm²

273x366

1125 LTL

326 €

1400 LTL

405 €

Full page left 1000 cm²

273x366

1000 LTL

300 €

1250 LTL

363 €

½ page 129 cm²

133x368

700 LTL

210 €

850 LTL

256 €

½ page 129 cm²

273x183

700 LTL

210 €

850 LTL

256 €

1/3 page 326 cm²

273x119

420 LTL

130 €

600 LTL

180 €

1/3 page 326 cm²

133x245

420 LTL

130 €

600 LTL

180 €

Small 129 cm²

273x47

200 LTL

65 €

300 LTL

95 €

Small 129 cm²

133x97

200 LTL

65 €

300 LTL

95 €

Small 129 cm²

63x200

200 LTL

65 €

300 LTL

95 €

For further information or to book your ad space, please contact the chamber: Tel. +370 (5) 269 00 62/84, e-mail: Sandra@bccl.lt

Feedback from BCC Social member Mervyn Richardson on using Members’ Discount Scheme

Peritus sprendimai – first consultation free off charge

actual removal could not have been better very efficient, extremely hard working, spoke good English and were very prompt in time keeping.

Radisson BLU Astorija hotel – 10% discount for official accommodation rates

Danske Bank (ex BCC member) They have very efficient and helpful staff in Vilnius. There E-banking facility is proving to be excellent.

Radisson BLU Hotel Lietuva – 10% discount on food and non-alcoholic drinks in the Riverside restaurant, Lobby Bar and Skybar; Special accommodation offers at Radisson BLU Hotel Lietuva, as well as REZIDOR Group hotels worldwide.

Regus - 15% discount on all products Shakespeare Boutique Hotel – 20 % discount for Shakespeare Hotel accommodation; - 15 % discount on all regular priced menu items in Sonnets Restaurant and The Globe Bar. VARUL, Law firm - free of charge first consultation; 10 % discount for all services Vinkleris and partners, Law firm – 25% discount for the services, no hourly charge, special priority while providing service.

When contacting the companies, please indicate that you are a BCC member, provide your company name and BCC Membership Card number.

For more detailed information about special offers & discounts please visit our website www.bccl.lt

BCC Non member rate

Since Joining British Chamber of Commerce, BCC Social member Mervyn Richardson and his wife Anolda have enjoyed using the Members’ Discount Scheme and are pleased to share their feedback with BCC members: Biuro Pasaulis (office supplies) We have made two sizable purchases and benefitted from the 22% discount – we have found the staff to be very pleasant and helpful.

Calenberg (International moving) We used Calenberg for our removal from Crawley, England to Vilnius and for storage. Not only were Calenberg cheaper than any British removal Company they could offer storage at a very reasonable rate. Their two staff who undertook the

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Hotel Vanagupe, Palanga We enjoyed a very pleasant week there in June / July 2012. The hotel is of good quality and the spa facilities excellent. It is unfortunate that the near surrounding, an abandoned public swimming pool is very unsightly Le Meridien Vilnius Hotel In 2012, we enjoyed their Sunday Brunch on a number of occasions. The spa area is excellent; the brunch very good value for money, with an unbelievable variety of dishes of high quality.

Odontika (dental clinic) No one enjoys visiting dentists! However, at Odontika, one is welcomed by a receptionist who has an unbelievable smile. The service from the dentists is excellent – their English is very good.

Just as good, if not better that in England. They are very obliging and flexible with appointments.

As a FINAL comment, one hopes that many more Chamber members will be offering Discounts for Members in the very near future.

BCC paper Spring 2013

3

BCC Lithuania wins COBCOE Chamber of the Year 2013 Award presented in London On April 10th, the British Chamber of Commerce in Lithuania was represented at official COBCOE 40th Anniversary Gala Dinner & Awards Ceremony, hosted at the spectacular Guildhall in the heart of the City of London. This year the event was attended by nearly 300 distinguished guests and Lord Green of Hustpierpoint, the UK Minister of State for Trade & Investment was guest honour speaker at the Dinner.

This visit for the BCC Lithuania became also very special, as the chamber won the main “COBCOE Chamber of the Year 2013” award. Moreover, the BCC Lithuania Sponsor member GlaxoSmithKline received “COBCOE European CSR Award 2013”, which was collected by chamber team at the Gala Dinner.

COBCOE Quote: The British Chamber of Commerce in Lithuania won the award because it was able to demonstrate a strong active support from a small team with entrepreneurial drive and ambition. A chamber that is able to make use of all

From the Chairman

Chris Butler, Chairman of the Board, BCC Lithuania This edition of BCC News is published at a very exciting time for the Chamber.

available resources to the full with excellent financial management and a lot of good quality events.

Excellent support for charities and very close to its members creating a real community with close member consultation and engagement and a pleasing greater emphasis in the area of partner engagement and trade promotion at all levels.

As many of you will know already and others will see from the photographs in this Paper, on 10 April the Chamber won the COBCOE Chamber of the Year award at the COBCOE annual conference in London. This is a wonderful achievement against competition from across the European continent and is great recognition of everything the Chamber has been doing over the years. At the same time it also acts as a motivation to do even better in future, something the new Board, elected at our AGM in March, will be striving to do.

In welcoming the incoming Board I would also like to pay tribute to those members of the outgoing board who either stood down or were not re-elected. Rimas Tuskevicius, Geoffrey Cohn, Tim Mahon and Sergejus Fedotovas have all served the Chamber admirably and I am immensely grateful to them for their contributions over the years.

It was a very nice coincidence that the Gala Dinner at which the Chamber of the Year award was presented took place at the Guildhall, the official “home” of the Lord Mayor of London, because as luck would have it, the Lord Mayor himself paid a visit to Lithuania a week later to speak to government officials in the run up to the Lithuania’s Presidency of the EU.

The importance of the EU Presidency to Lithuania is easy to understand when we see how much the traffic between London and Vilnius has increased as a result. It is not only the Lord Mayor who has come calling. During February we had the Speaker of the House of Commons, in May there was a delegation from the British Bankers Association, and shortly after that the Trade and industry Minister Lord Green will make his second visit. I’m sure on the governmental level there are even more visits that we at the Chamber are unaware of. It all adds up to much more engagement between our two countries, something that can only be good for business in the long run.

Indeed, all this is happening at a time when the trade relationship between Lithuania and the UK is stronger than ever. Last year, UK exports to Lithuania grew by 42%, the highest increase in trade with any EU Member State, with total goods exported amounted to £370 million. Admittedly, this makes Lithuania only the 60th largest export market for the UK, but with such a rate of growth this position can only improve and it seems that UK companies are at least starting to find their way to the eastern Baltic. Meanwhile, Lithuanian exports to the UK in 2012 amounted to £816 million and the UK is now Lithuania’s 6th largest export market.

It all adds up to a very good story for the UKLithuania relationship right now and one that will surely continue to be built on during 2013.

Lithuania on the way to EU Presidency Landfill Gas Power in Lithuania < continued from page 1

In November 2010 British companies group ENER-G officially opened a Landfill Gas Power Station in Kariotiškės, Lithuania. The event attracted large interest from Lithuanian media and Government and Municipal officials. It was the first of a number of ENER-G’s projects that are being implemented in Lithuania.

Hugh Richmond, the Managing Director of ENER-G Natural Power Limited explains how it came about “Lez Swirski our Polish Director of ENERG Polska (British guy but speaks Polish) went on a UKTI Trade mission in 2007 and meet with Irmantas Šidlauskas (Proto Paslaugos, Environmental Consultants) and the relation developed from there. The fact that we were just over the boarder in Poland meant that we could give some engineering support from there. So we saw an opportunity. “ The UKTI team in Vilnius had organised a Landfill Management seminar, during which ENER-G representative made a presentation “Is it worth degassing landfill sites”.

As a follow-up to the seminar, UKTI Vilnius together with Environmental Sector Group organised an inward mission of Directors of Lithuanian Regional Waste Management Centres to CWIM, the major landfill management exhibition in the UK, where they had an opportunity to learn more about ENER-G and meet with company’s representatives.

As a result, in 2008 ENER-G participated and won a tender to build a landfill gas power station in Kariotiškės and since then it also developed

projects in Klaipėda and Alytus giving a total power generation capacity in Lithuania of 3.5-4MW. UKTI team in Vilnius was heavily involved in helping the company to raise public awareness about ENER-G projects in Lithuania.

During the official opening of the Kariotiškės Landfill Gas Power Station Hugh Richmond commented that the company has every intension of developing other LFG, co-generation and energy efficiency projects in the Baltic region.

“There are several other smaller sites for Landfill Gas generation but the country is not large so there is not too many large centres of population with landfills that are big enough to support generation. Our focus going forward in the Country is engines for co-generation (recovery of heat from an engine that is use to produce electricity from natural gas, making the engine 80% efficient rather that 38% if you only use the power”.

And what for the future? “ Shortage of self generation and dependence on other countries for power make it an attractive country for self generation”, and the main obstacles? “Bureaucracy, permitting and licences are long winded, slow and over prescriptive. However, there is a willingness of the people to make things happen once you get through all the paper work”.

With thanks to Hugh Richmond, the Managing Director of ENER-G Natural Power Limited

I am pleased that the EU Presidency priorities were successfully agreed between all the Lithuanian parliamentary parties back in 2011. During our Presidency we will seek to promote continued sustainable economic growth and competitiveness by taming unemployment, securing financial stability and ensuring energy security, all of which are key EU priorities.

Our country will work to address fundamental EU financial stability problems and contribute to further strengthening of EU economic and monetary policy coordination. Particular emphasis will be placed on the growth agenda, the stability and growth pact, the deepening of the single market, and the digital agenda.

We understand the importance of each Presidency being a fair and impartial office holder and we are determined to remain committed to this principle, but we will also seek faster progress in areas that are very relevant to Lithuania. Strong importance is intended to be attached to four key priorities: energy security; Eastern Partnership through strengthened cooperation and support for integration reforms in Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine; strong EU external border control and comprehensive border protection (including anti-smuggling), and closer all types relations in the Baltic region.

We will also prioritise the creation of the internal energy market by ensuring the necessary infrastructure and pursuing synchronous operation with the European electricity grid, at the same

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time focusing on building the external dimension of EU energy policy.

The Presidency of the EU Council does not only mean work requiring a great deal of responsibility and careful preparations to ensure a smooth decision-making in the EU, but is also a great opportunity to promote the country and strengthen its influence in the international arena. Lithuania's Presidency of the EU Council will hold more than 3000 meetings in Brussels and Luxembourg, and close to two hundred Presidency events in Lithuania. Lithuanian culture and art will be presented in different spaces in Brussels as well as in Lithuanian diplomatic missions around the world. It is expected that during the Presidency, Lithuania will be visited by between 20 -to 30 thousand delegates.

Lithuania is a small and young country that has just lived through one of the gravest economic crises in the world, therefore, we cannot boast of big financial capacities. Thus, the amount allocated for the Presidency turns out to be one of the most modest among all Presidencies, i.e. about 62 million euros. But I can definitely assure everyone that the responsible institutions and the staff are very well prepared for the work lying ahead, and our people, who are among EU's most ardent enthusiasts, look forward to welcome guests and represent the country in the time of the Presidency.

This article was first published in the Spring 2012 issue of COBCOE’s magazine, Links.

BCC paper Spring 2013

4

Energy

Increasing energy prices – a growing headache for Lithuanian business, reveals KPMG study A recent study carried out by the audit, tax and advisory services firm KPMG in Lithuania revealed that fluctuations in energy prices in Lithuania are presenting an ever-increasing challenge for business. According to KPMG partner Rokas Kasperavičius, increasing energy prices offer little hope, but dependency on energy prices can be reduced.

This year the KPMG practice in Lithuania presented its second annual study, entitled Vulnerability of Lithuanian Business to Changing Energy Prices.

This year's study shows that Lithuanian business' vulnerability to fluctuations in energy prices has further increased. After assessing public statistical data and analysing possible scenarios (optimistic, realistic and pessimistic), it has become clear that due to more expensive energy sources, companies in Lithuania's main economic sectors are facing the risk of potential profit loss, totalling LTL 1.13.7 billion this year. Compared to the previous study, the potential profit loss in every scenario increased almost two-fold.

Is this increasing vulnerability of Lithuanian business to energy prices a serious problem?

KPMG's study has identified this trend for the second consecutive year, which should arouse worries as it is obvious that increasing energy prices may be causing headaches for both managers and shareholders; rising costs for fuel, electricity and thermal energy are eating into company profit and weakening such enterprises' competitiveness in international markets.

Furthermore, the vulnerability of the economy to energy prices should be a matter of concern in terms of the state budget, as lower economic activity results in lost tax revenues.

According to data from 2011, energy consumption comprised LTL 8.6 billion: three-quarters of this amount was used for fuel, 21% for electricity, and 4% for thermal energy. The highest energy costs were incurred in the industry, trade and transport sectors.

Last year Lithuanian GDP increased by 3.1%, and this year analysts project similar growth of the economy. Doesn’t the fast growing Lithuanian economy offset any increase in energy prices?

global projections regarding energy prices are not optimistic: in the next several years the prices of oil, natural gas or coal are not expected to drop.

As of 2007, in Lithuania alone, the prices of thermal energy and electricity went up by 65% and 63%, respectively. It is likely that such price rises will continue in the coming years. According to a KPMG’s 2012 Energy Survey, international energy companies confirmed that the price of oil is likely to grow by 10% in 2013. More than half of respondents affirmed that this year the price of oil would reach USD 131–150 per barrel, and 44% of respondents indicated that the increase of energy prices is their second biggest headache, following the unstable regulatory environment.

To sum these assumptions up, the degree of vulnerability of business to changing energy prices will remain high; therefore, Lithuania should take measures to reduce this dependency.

Are there any realistic ways to reduce the degree of energy vulnerability?

Perhaps there are no quick measures, but targeted long-term actions may bring tangible results.

For example, Lithuania is obviously dependent on energy imports from one country. Therefore, greater diversification of the energy supply in the electricity and natural gas sectors would expand the opportunities to acquire energy at a more favourable price and reduce the risk of price fluctuation.

Furthermore, there is much room for increasing energy resource efficiency in Lithuania. The EU directive on energy efficiency is one of the main measures of the European Commission for achieving an ambitious target – to reduce energy consumption by 20% by 2020. For Lithuanian business this makes for a lower degree of vulnerability in terms of energy; according to preliminary estimates, for business these costs will decrease by LTL 1.8 billion.

Of course, after the prolonged economic downturn, the Lithuanian economy is on the rise again. However, a recovering economy requires more energy, especially for Lithuania whose economic structure and sectors bearing a high vulnerability to energy sources are predominant, i.e. the manufacturing industry, transport.

For instance, according to data from Statistics Lithuania, last year the prices of electricity and thermal energy increased by 12%, and fuel by 20%, but total expenses for energy increased by 61%.

Thus the growing economy needs more energy and that results in an increasing vulnerability for business.

KPMG's study focussed on the main sectors of the Lithuanian economy: industry, transport, trade, forestry and fisheries, services, and construction.

Compared to the results of the previous year, energy vulnerability has increased in construction, fisheries and forestry, industry, and trade sectors.

Finally, economic sectors generating higher added value (e.g. high technologies) use less energy, therefore supporting these sectors will result in reduced dependency on energy.

Looking forward, are there any projections on the growth of this energy vulnerability?

In 2012, KPMG in the Baltics carried out similar studies in other Baltic States, which revealed that Latvia is the most and Estonia the least vulnerable to energy prices.

If the growth rate of the Lithuanian economy remains the same as the previous year's, enterprise's energy consumption will increase.

Moreover, it should be taken into account that

About the study ‘Vulnerability of Lithuanian Business to Changing Energy Prices’ is a study carried out for the second consecutive year by analysts at KPMG in Lithuania with the aim of determining the influence of fluctuations of energy prices on the main sectors of the Lithuanian economy. The study covered industry, transport, trade, forestry and fisheries, services, and construction sectors. Three scenarios of vulnerability in terms of energy have been considered – optimistic, realistic and pessimistic. The vulnerability of economic sectors has been assessed on the basis of public information: data from Statistics Lithuania, records of energy (electricity, fuel) consumption, and projections of energy prices.

Challenges of the Lithuanian Energy Sector < continued from page 1

The indisputable fact is that all Lithuania’s strategic energy projects are significant to the entire Baltic region: the Lithuania-Poland pipeline, which will connect the Baltic states with the rest of the EU countries; the NordBalt energy transmission cable interconnection between the Baltic region and Scandinavia; and the LitPol Link high voltage energy transmission interconnection that will link the Baltic countries with Western Europe. These are all necessary infrastructure developments that will allow the Baltic countries to integrate into a European continental network.

How much attention is being given to local energy resources such as wind and biomass production?

It is essential for Lithuania to develop its internal energy production and diversify its energy supply. Sustainable development of renewable energy resources is of course one of the priorities.

The new Lithuanian Government will focus on both local energy resources and biomass production, and will seek to promote competitiveness in these areas.

We will seek to eliminate any existing bureaucratic obstacles preventing the development of this sector and highly encourage the participation of different suppliers. However, it is worth stressing that our priority is creating an energy market based on competition, so it is important not to distort the market with government subsidies.

Where is foreign investment, and expertise, of most interest to the Ministry of Energy?

As I mentioned before, we will seek to attract business to renewable energy production. A functional energy market should encourage investment in the most modern technologies in order to ensure the best prices in the market place.

Another possible area to attract foreign investment is shale gas exploration and extraction. The new Government has made a commitment to explore shale gas in Lithuania, and to make decisions concerning shale gas extraction in the future. Lithuania has to support innovative methods to reduce the price of its energy resources. The implementation of the new projects will also lead to the creation of new jobs and attract modern technologies together with valuable know-how.

Lithuania is currently preparing to explore shale gas resources, which are predicted to be enough to cover the countries needs for 30-50 years.

At the moment, a working group established by the Lithuanian Prime Minister is assessing the different scenarios of Lithuanian energy supply system development. The main aim is to choose the most cost-effective and consumer friendly model. At this stage we must decide on the prospects of the regional Visaginas nuclear power plant project. If theVisaginas NPP project is implemented together with regional partners and the strategic investor, this could also be an attractive area for investments as well as a big boost for Lithuania’s economy.

How will you be using the EU presidency to promote Lithuania's case?

Energy will be one of the most important priorities during the Lithuanian Presidency. The stated purpose of Lithuania, together with the other two 'Trio' counties, Ireland and Greece is fully completing the internal energy market by 2014 and ensuring that no Member State remains isolated from the European gas and electricity networks after 2015. The priorities are Security of supply, Safety and Sustainability of energy production and use, while bearing in mind the decisive contribution of the EU`s energy policy to competitiveness, growth and employment. Sustainable development of the use of renewables and lowering car-

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bon emission rates will be one of the challenges to be faced.

With regards to energy market finalization, the Connecting Europe Facility package will be of key importance. During the Lithuanian Presidency, a List of Projects of Common interest will be compiled. Projects on this list will be eligible for European financing and these will primarily be energy infrastructure development projects.

Lithuania will dedicate its efforts to accelerating the implementation of prioritized policies. The common European interest fully complies with Lithuanian national interests in this respect.

Finally, if there is a particularly important question that has not been asked please state it.

I would just like to stress some important points once again. During the following months Lithuania will make a decision on what is the most costoptimal and consumer friendly model of Lithuanian energy supply system. We have to assure our own energy generation capacity and ability to fully integrate into the European energy market in synchronous way. The EU single market can only be developed fully, when there are functional energy markets in each individual Member State, with a special focus on the EU's energy islands.

Prepared by Alistair Day-Stirrat, Editor of BCC paper

BCC paper Spring 2013

5

Energy

Rise and Fall of Small Solar Energy Plants in Lithuania.

Recent Amendments of the Law of Renewable Energy Resources

< continued from page 1

To take advantage of the subsidized tariff, some developers even took the effort to divide their big land plots into a number of small plots that were owned by a number of different legal entities (ultimately owned by the same holding company or persons) which would then each house a small solar plant up to 30 kW. Thus, the market reaction to the business possibility was extremely agile.

If all these projects were realized, the overall electricity price could have increased significantly, as the grid would have to procure 450 MW of solar electricity at the high, subsidized fixed prices. According to the calculation of the Ministry of Energy, the increase in electricity price could have been up to LTL 5,4cents/kWh (EUR 1,57 cent) if all projects were implemented. However, this was not a failure to comply with the Law on Electricity Energy, where promotion of renewable energy should be based on the criteria of economic reasonableness, low expenditure and minimal influence on the price of electricity to final consumers. Therefore, the amendments to the LRES that came into force on 1st Feb 2013 and a separate law on their implementation have been proposed and adopted.

Amendments to the Law on Renewable Energy Resources (LRES).

1) The “Soft environment” for procurement of solar electricity has been essentially restricted.

Provisions of the LRES which indicated, that all surplus electricity generated in solar power plants not exceeding 30 kW of total installed capacity shall be mandatorily bought up by the grid under the fixed tariff, were changed. The new regulation provides that only electricity generated in solar plants not exceeding 10 kW of total capacity may take advantage of such incentive without going through an auction process.

It must also be noted that no more than 50 % of electricity generated by consumers in such small solar plants per annum will be deemed ‘surplus electricity’ that is eligible for procurement by the grid for the subsidized fixed tariff. All remaining electricity shall not be deemed ‘surplus electricity’ and will not be bought up for the subsidized tariff.

2) Following the new law, fixed tariffs and promotional quotas for solar plants exceeding 10 kW of installed capacity will be allocated by an auction. In the previous version of LRES auctions were only applicable to solar plants which exceeded 30 kW of capacity.

3) The new wording of LRES also sets down the aim of achieving a total of 10 MW of electricity from solar energy by 2020. This is not a very ambitious goal and the previous version of the LRES stipulated that the mentioned 10 MW did not encompass energy generated by small solar power plants the capacity where of did not exceed 30 kW. However, the new law essentially limited such capacity only to the small solar plants, the permits to develop which were issued before 31 December 2012. All later developments will be included into the overall 10 MW limit, thus essentially limiting their possibilities of development, as the distribution of promotional quotas and acceptance of applications to connect power plants not exceeding 10 kW in capacity will be suspended after reaching the 10 MW limit. According to the data of the Ministry of Energy the total amount of 10 MW for solar power generation is already achieved at the moment…

4) Also it is very important that the previous regulation stated that producers of solar electricity in small plants are granted the fixed subsidized tariffs (for 12 years) that are valid at the moment of receipt of the permit to develop the plant, i.e. before making of all the investments. This was changed by stipulating that such tariffs will be granted and fixed only at the moment of receipt of the permit to ‘Produce electricity’ i.e. only after the solar plant is already built, developed and connected to the grid. Thus, the investors will have to decide on investment not even knowing what tariff they will be granted upon completion!

6) Following the new regulations, persons that had received the ‘Permissions to develop electricity energy capacity from renewable energy resources’ (Leidimas plėtoti elektros energijos gamybos iš atsinaujinančių energijos išteklių pajėgumus) before the LRES came into force, i.e. 1st Feb 2013 and had planned to build solar plants up to 30 kW, have to finish their developments by 1st July 2013 and apply for ‘Permission to produce electricity’ (Leidimas gaminti elektros energiją) by that date. If such an application is not received, the above ‘Permission to develop capacity’ shall become void. The term may be extended (by an additional application to a special commission and their decision) for up to 7 months if at least 50 % of the project investments have already been made.

7) Such developers also have to provide a financial guarantee by 1st March 2013 that would secure their undertaking to develop the intended capacity. The amount of financial guarantee is calculated by multiplying the intended capacity (in kW) of the future plant by LTL 500 (approx.

EUR 145) for each 1 kW. 8) A special procedure for compensation was also established, according to it persons who pos-

sessed the ‘Permissions to develop electricity energy capacity from renewable energy resources’ but did not manage to build the intended solar plants by 1 July 2013 (and were not granted an extension of the term) are entitled to apply to a special governmental commission for compensation of their direct expenses incurred as a result of development and non completion of such projects. The expenses, if deemed eligible, are to be compensated by the state within 1 year of the decision being adopted. The Government has not yet formed this commission.

As a result of the above analysis, it might be concluded that the overly favorable regulation on incentives to small solar plants was radically changed from an incentivizing development to one that is essentially more restrictive. It might also be expected that persons who were intending to develop small solar plants up to 30 kW and who will not be able to finish the development by 1st July 2013 will actively try to defend their interests in courts as the regulation was changed during the process of implementing their projects and essentially was back dated, which obviously infringed their rights. The first claims of this nature have already been lodged with courts and we must await the outcome.

Table: Overview of tariffs for solar electricity energy

5) Further, the frequency of establishment of the maximum tariff for renewable electricity by the National Control Commission for Prices and Energy has been increased. The tariff shall now be revised quarterly, while previously revision was annual. This will obviously enable the Commission to better adjust to the changing market situation, but will also decrease the predictability of tariffs.

Our experts Malcolm and Damon from London international School of Languages know many essential words for business. This month's theme is Energy. So here goes their recommendation!

Renewable resources – a supply of something which is capable of being renewed.

Hydraulic – operated by the movement and force of liquid (a hydraulic brake or press).

Turbine – an engine or motor driven by the presure of steam, water, or air against the curved vanes of a wheel or set of wheels.

Biofuel – uel that is made from living things or from something their bodies produce, for example fuel made from cow manure.

Crude Oil – Natural, non refined and non heated oil.

Solar – produced by or coming from the sun.

MC2 – Energy is mass times the speed of light squared.

Tidal – depending on or regulating its time by the tides; as, a tidal steamer; tidal trains.

Hydro Electric – producing, or having to do with the production of, electricity by water power or by the friction of water stream.

Energy drink - a soft drink containing ingredients designed to boost the drinker's energy, esp after exercise.

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BCC paper Spring 2013

6

14th Annual General Meeting elects new BCC Board for 2013-2015 On March 20th, the 14th Annual General Meeting of the British Chamber of Commerce was held in Radisson Blu Astorija Hotel.

The chamber expresses its great gratitude to AGM Dinner Sponsors:

This year AGM also run the elections to the Board for 2013-2015, attracting 15, the record number of candidates standing for the Board. Congratulations to all twelve elected Board members as below:

• Alistair Day-Stirrat, Odontika; • Algirdas Pekšys, SORAINEN; • Asta Grabinskė, AVIVA Lietuva; • Ben Harvey, Growing Talent; • Chris Butler, BCC Social Member; (re-elected Chairman) • Frank Reul, Accor, Lithuania, Latvia, Estonia; • Giedrius Dzekunskas, Barclays Technology Centre; • Mike Little, BCC Social Member; (treasurer) • Nick Price, Bright Purple; • Robert Juodka, VARUL; • Toma Vevelstad, Amber Staff; • Viktorija Trimbel, Quantum Capital; New BCC Board 2013-2015 (Mike Little and Alistair Day-Stirrat are missing in the photo) During the first Board meeting, Chris Butler has been re-elected as the Chairman of the British Chamber of Commerce for 2013-2015. The Board has also set up committees with field of interest, where Board members will be providing their know – how and personal input to assist the office and better serve the interests of BCC members. The subcommittees are as following: Trade & Investment promotion; Government Relations; Membership; CSR; Events; BCC paper.

As it became a tradition of the chamber, the AGM this year was followed by elegant Sit Down Dinner with Guest Keynote speaker from the UK – Mr Neil Cooper, one of the world’s leading experts in cross-border insolvency, Bankruptcy Administrator of SNORAS Bank. Nearly 80 members of the chamber have attended the event and enjoyed the Dinner and the keynote speech, which was interacted with questions from the audience to Mr Cooper.

After the Dinner, short handout ceremony of Burns Night’13 charitable donations was held, where Chris Butler, Chairman of the chamber presented 2 symbolic checks with 10.000 Litas each, to Dalia Beigienė, Director of School of Craftsmanship “Sodžiaus meistrai” and Joleta Veronika Dubauskienė, Director of Day Care Centre “Arcus” in Pabradė.

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Photos by Jurga Prakapaitė

BCC paper Spring 2013

7

Pillar II pension – ensure quality retirement

Asta Grabinskė, Managing Director of AVIVA Lietuva Three-pillar pension systems are adopted by many countries to avoid a significant lack of retirement income caused by future demographic problems. Lithuania's Parliament gave its final approval to reform this system at the end of last year.

What kind of system do we have and what could it offer us?

Pillar I is the public-funded pay-as-you-go system or SoDra pension which guarantees that all pensioners will receive a pension on which they can subsist. The Pillar II or funded pension is based on voluntary contributions paid from each person's social security taxes into his personal pension account where those means are invested.

Lithuania's Pillar II system started in 2004 to avoid future demographic problems which would result in decreasing retirement income.

Pillar III or life insurance is voluntary savings by individuals wanting to supplement their retirement income.

Pillar II: everyone can choose a new way

“The economic crisis brought additional funding challenges for the Pillar II pension system. After a long debate , Pillar II was changed as confirmed by the Parliament at the end of last year. People, starting from April to September have a chance to choose which part of the new pension system they want to be in” stated Asta Grabinske , CEO of life insurance and pension funds company Aviva Lietuva.

Those who join the Pillar II system starting from this year will automatically participate with extra contributions according to the new formula.

The first option for people who were already saving for their future pension is to do nothing and continue participating in Pillar II with the basic premium from Sodra, 2 percent in 2012. The second option is to pay extra contributions into a personal pension account in addition to the basic premium from Sodra and therefore get a subsidy from the Sodra budget (this formula is called 2+1+1: 2 percent basic premium, 1 percent voluntary contribution and 1 percent is the state budget subsidy according to the country's average salary). The final option is to cease participation in the Pillar II scheme altogether and stay in the Sodra pension system only.

How to ensure quality retirement?

“Research from The Bank of Lithuania gave a clear message - the Sodra pension without any participation in Pillar II would provide less than 30 percent of pre-retirement income. If a person participates in the Pillar II system then his or her

pension would increase to 50 – 60 percent of preretirement income” A.Grabinske said.

A Worldwide formula finds that the quality of retirement life will not decrease if the actual pension reaches 70 percent of pre-retirement income. According to calculations, people who earn less than the country average monthly income, if participating in Pillar II can increase their pension up to 60 - 90 percent of their pre-retirement income. People with higher income could increase their pension up to 40 – 50 percent of their preretirement income, thanks to the Pillar II pension scheme. Additional means of saving by adopting a Pillar III pension or life insurance could help to reach the level of 70 percent of pre- retirement income.

No ceiling for social taxes It is necessary to mention that the Sodra pension size is capped. The biggest Sodra pension which a person can get is 2,000 litas per month.

However there is no ceiling for contribution on social security taxes for employed people.

So the gap between pre-retirement and retirement income is very significant for people with income higher than 7,500 per month. Pillar II pension funds guarantee that you will get what you saved in your private account. Also Pillar II offers the right to inheritance of all the money you’ve saved in a pension fund if the participant dies.

Can I participate in Pillar II? All types of economic engagement including copyright agreements, personal enterprise, individual activities, sports and performance, employment contracts and farmers can also participate in Pillar II. The only Exceptions are for those who are selfemployed under a business certificate.

Pension payment Under Lithuanian law, a pension from Pillar II can be paid out from when a person reaches the retirement age of 65. If the capital in the pension fund account is more than 33 thousand litas a person has to buy an annuity (regular premium pension payment) which is mandatory.

If the accumulated capital in the pension account is over 230 thousand litas this amount of money may be recaptured at once and the rest of this sum may be paid out with the annuity.

Future perspectives People who want to check if it is useful for them to participate in pension funds and decide what kind of participation they should use can go to the official webpage of the Lithuanian pension system, where a prognosis of a future pension according to your personal characteristics will be shown (address: http://www.lipfa.lt/skaiciuokle).

According to the calculation it is useful for almost all groups of people to start saving in Pillar II The Lithuanian Pillar II system has more than a million participants and almost 5 billion assets controlled in pension funds.

What about foreigners?

According to Lithuanian social security legislation, the basic requirement needed for people from foreign countries if they want to get a Sodra pension is to have a minimum record of 15 years total work and social security tax payments.

However there are no restrictions on Pillar II pensions. Therefore it is in everyone’s interest to participate in Pillar II if your work or are economically established in Lithuania and pay social security taxes here. It does not matter how long you have worked in Lithuania, everything you contribute to the Pillar II pension account stays in your pension account as your personal assets. You can access these funds when you reach retirement age, no matter where you reside at that time. Furthermore, Pillar II is inheritable.

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BCC paper Spring 2013

8

Brits in Lithuania Birding Lithuania and Beyond

By Jos Stratford

Author on frozen Baltic Sea Lithuania, early summer. Picture the scene, a mosaic of flower-dotted meadows and deciduous woodland abounding with birds - White-tailed Eagle soaring overhead, a Black Stork quietly wading through shallow water, Corncrakes and Quails calling in the grassland off yonder. Fast forward six months, in a land now gripped by a clock of sparkling snow, a Three-toed Woodpecker quietly taps at a broken alder, a Pygmy Owl eyes a feast of small birds flocking into a busy feeding station.

For a birdwatcher in the UK each and every one of these species would be a dream to imagine, but for me, a British ex-pat in Lithuania and proud owner of a wildlife reserve home to all these birds and more, this dream is my reality. It is a dream with roots going back almost a decade - sitting in my garden just outside Vilnius, with temperatures nudging the minus 20 mark and throngs of birds cutting into the winter silence to visit my feeders, I had occasion to sit and ponder, ‘wouldn’t it be wonderful to create a reserve to attract even more birds’.

And so it was, way back in the summer of 2004, up and down the country I travelled, a summer and a half looking for the perfect spot ...then finally my

Burrowing Owls search was over, I stumbled across a small plot in Labanoras that seemed just the job. Up for sale, 35 hectares with all the ingredients I was hoping for - a mix of mature deciduous trees, a lot of dead standing wood and a mosaic of habitats from dry woodland through to flood forest, the latter being alders and birches standing in a metre of water. I thought it over, it looked the perfect place to create my dream, a reserve to preserve a little corner of Lithuania and a selection of its birds. Then, as I considered the debts I would incur, over flew a Roller, a bird in decline and nigh on extinct in Lithuania ...that just about clinched it, off to the bank manager I went and the rest is history.

On the 1st of September that year, my reserve was born! Under autumn skies, with skeins of geese and waves of passerines streaming south, a couple of pools were excavated, a number of additional trees panted and a feeding station established ...immediately birds arrived, Marsh Tits, Lesser Spotted Woodpeckers, Black Woodpeckers, Nutcrackers, the list went on. Within a month, as the rest of Lithuania slowly emptied of birds undertaking the annual autumn exodus, my feeders were absolutely brimming with birds and I was in

Common Crane my element!

However, even in my wildest imagination, I could never have prepared myself for success that was to follow over the years! With careful management of the land and the provision of near 200 nest boxes, no less than 146 species of bird have now occurred, including many in the Red Data Book of Lithuania and such stunners as Lesser Spotted Eagles that tumble in display in the spring, Red-backed Shrikes that sit atop fence posts and, my piece de la résistance, a total of eight species of woodpecker, these latter birds in particular attracting a steady stream of UK birders and photographers to enjoy the spectacle.

For me however, the pleasures are with both the common and unusual, the Pied Flycatchers establishing their territories in spring, the Black Terns zipping over mid-summer, the unexpected arrivals of Little Crake and Red-footed Falcons, scarce birds both. And not just birds, a rich mix of mammals occurs too – Elk, Pine and Stone Martens, Polecat and Beaver to mention just a few – plus more butterflies and dragonflies than you could ever wish for. Hopefully, all will continue to flourish as the years go by.

Does this keep me tied to Lithuania though? Not a bit, much as I enjoy my reserve and spend many of my weekends there, a greater or equal passion lies with exploring the globe in search of yet more wildlife – with over a hundred countries under my belt, highlights of the last three or four years have included a couple of amazing trips to Iran, plus close encounters with Polar Bears in Arctic Canada, both Black and Grizzly Bears in the US, Snow Leopards in the Himalaya and a positive bevy of big cats in the wilds of the Kgalagadi in the Kalahari Desert of southern Africa. Next up, an overland trip from the Salton Sea in southern California to the Arctic Ocean in Alaska.

For me, the reserve in Labanoras and the global travels are extensions of the same – a wildlife bonanza, be it the forests and deserts of far flung corners of the world, or be it relaxing in Labanoras, both fantastic. This is one British guy basically enjoying life, albeit most of the time wondering how I actually afford to do any of it!

Full reports and photographs from both my Labanoras reserve and my trips available at www. josstratford.co.uk Intriguing videos of animals visiting my Labanoras reserve at night available at www.vimeo.com/user13152038/videos Photos by Jos Stratford

City of London visit On 23-24 April, the Lord Mayor of London, Alderman Roger Gifford, and the Chairman of Policy and Resources Committee of the City, Mr Mark Boleat, visited Lithuania ahead of Lithuania’s EU presidency.

On this occasion, the British Chamber of Commerce in Lithuania organised Dinner for its members and representatives of Financial sector, where both guests made speeches and answered to the questions from the audience. The event was held in Kempinski Cathedral Square Hotel and moderated by Chris Butler, Chairman BCC. In his speech, the Lord Mayor outlined the advantages of London’s City and invited Lithuanian businesses to use them more actively: “So I am here to encourage Lithuanian businesses to look to London; to use the liquidity and capital of the London’s markets and expertise. It is where business comes to raise capital, manage risk and procure products. It is where international business looks for support and partnership; the London Stock Exchange for instance has more foreign owned firms than any other Exchange in the world”.

High importance in Lord Mayor’s speech was also given to the UK’s future relationship with the EU and the necessity to strengthen the EU single market: “The best way to take the UK’s future relationship with the EU forward is to engage constructively on the reform and competitiveness agenda. And for London there is a bottom line: securing a strong and stable Single Market which is flexible and competitive. So we welcome Lithuania’s commitment on strengthening the Single Market during its presidency. That will be good for Europe – and help Europe meet the intense competition from new economies and trading blocs.”

The Dinner with speeches from Lord Mayor and Mark Boleat was attended by 70 BCC members and financial sector representatives, who also had an opportunity to talk to the Guest Speakers directly during coffee and dessert buffet table afterwards.

The Chamber expresses its great gratitude to event Sponsors:

Photos by Jurga Prakapaitė

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BCC paper Spring 2013

9

Chronicle of BCC Events

Burns Night Celebrated in Vilnius for the 14th Successive year The British Chamber of Commerce in Lithuania has started 2013 by organising its 14th Annual, Traditional Burns Night, Charity Event to celebrate the birthday of Scotland's national poet, Robert Burns (1759 – 1796) and to raise funds for two youth and children charity organisations in Lithuania: School of Craftsmanship „Sodžiaus meistrai“ and Children Day care Centre „Arcus“.

In keeping with tradition, the 14th annual Burns Night was held in Vilnius City Hall, located in the very heart of the magnificent old town. The event was attended by 250 guests, this year including 11 different nationalities, which is an absolute record since 2000. The charity raffle this year raised 20,000 litas (5.792 EUR), shared in equal parts by two selected charity organizations.

Chris Butler, the chairman of the British Chamber of Commerce and MC of this event is pleased that Burns Night remains extremely popular in Vilnius and that guests are willing to support the Chambers' annual fund-raising initiative: “I am delighted that this wonderful Scottish tradition has become such a significant event in the Vilnius social calendar. I very much want to pay tribute to our guests who year after year give generously to the charities that we support. Since 2000, Burns Night has raised 137.000 Litas (39.678 EUR) which has been distributed to 16 different children’s and

youth organizations operating in Lithuania. As a Chamber we are very proud of this record and feel that it is a very important part of our contribution to the development of civil society in Lithuania.”

This year Guests at Burns Night were entertained by exceptional “SAOR PATROL” music band from Central Scotland and Fife. A day before, additionally the public event to celebrate Robert Burns birthday and to promote Scottish traditions was held at Panorama shopping mall, Burns Night’13 Premier Sponsor, and was met with great interest by local people. The general public enjoyed the turbulent performance of “SAOR PATROL” and local “Drum Fever” band, which involved everybody including the children into joint drumming fiesta.

As appropriate, the main Burns Night Charity event was celebrated in a true Scottish manner and had most of the essentials necessary for a successful event. The haggis was ceremonially piped in by Philip Barlow, Malcolm Stewart and the Chef. Address to a Haggis” was recited by Malcolm Stewart from London International School of Languages, the “Toast to the Lassies” and “Reply from the Lassies” were delivered also by Morag Keith and Graham Keith. After Burns Supper, the guests were invited to enjoy ceilidh dancing led by ceilidh caller David Barlow, which was a great success.

Photos by Tomas Demenis

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BCC paper Spring 2013

10

Chronicle of BCC Events

Joint Business Lunch On 18 February 2013 the newly elected Lithuanian Prime Minister Algirdas Butkevičius met with 170 members of the British, French-Lithuanian, Swedish and German-Baltic Chambers of Commerce in Vilnius at a business lunch held in Kempinski Cathedral Square Hotel.

Prime Minister presented the main priorities of his government’s program and the plans for the upcoming Lithuanian EU Presidency. One of key objectives of the new government is the further improvement of Lithuania’s investment climate.

In order to increase Lithuania’s international competitiveness the government intends to improve the conditions for the development of new innovative technologies and promote the dialogue between business and science. Another essential element of the program is to increase the efficiency of tax authorities for the benefit of business

activities. The new government also prepares for the introduction of the single European currency in the beginning of 2015 – an important step that is emphatically supported by the foreign business community in Lithuania.

This meeting was the first of series of joint events organised by foreign chambers of commerce operating in Lithuania, to foster the dialogue between their members and the new Lithuanian government. Chris Butler, Chairman of the Board of the British Chamber of Commerce, said: “We are glad that our joint initiative that was started four years ago is successfully continued with the new government. It is an important step to attract more investors for Lithuania.”

The first business lunch with the Prime Minister was coordinated by the German-Baltic Chamber of Commerce in Estonia, Latvia, Lithuania (AHK Baltic States).

Photos by Jurga Prakapaitė

Breakfast Technical Briefings BCC Breakfasts Technical Briefings continued to be a great success in 2013 first quarter and kept an interest from chamber members and friends alike.

In January, the topic “Recent changes in Tax Legislation and Tax Practice” was presented by Alina Jovaišienė, Senior Consultant at Deloitte Lietuva.

The topic attracted an interest from members and involved considerable amount of audience interaction after presentation.

Alina Jovaišienė, Senior Consultant, Deloitte Breakfast Technical Briefing in February hosted Mantautas Paškevičius, Country Manager at Strategic Staffing Solutions International, who made a presentation on “Choosing Lithuania: What is at stake when global companies choose Lithuania for new Shared Services Centers?”. The presentation took a look at the impact of Shared Service Centres from multiple points of view: what does it mean for the country, government and labour market, what’s in it for foreign investors and how Lithuania looks in the global context.

Marius Jundulas, General Manager of PZU Lietuva and Artūras Jonkus, Publicum

Continuing Professional Workshops

At the beginning of March, BCC invited its members and friends to first workshop in 2013 on applying academic writing techniques to business English, which was held in Radisson Blu Hotel Lietuva.

The workshop was lead by Mr Michael Pennock, a qualified teacher from BCC Small Company Member London International School of Languages. This interactive and practical workshop focused on various techniques on how to structure sentences correctly and persuade your audience: from using connectives to summarising the points as well as how to incorporate different forms of evidence into written English. Some relevant cultural subtleties were learnt too. The participants had the chance to practice both individually and in small groups.

As usual, the workshop was followed by a networking lunch at the Riverside restaurant.

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Mantautas Paškevičius, Country Manager at Strategic Staffing Solutions International In April, the chamber had the pleasure of inviting members and friends to attend Breakfast Technical Briefing with Marius Jundulas, General Manager of PZU Lietuva, who made a presentation “Forever young: older society creates challenge for business in Lithuania”. The presentation was based on European tendencies and issues touching ageing society were examined. The presentation was well received by all in attendance and an active discussion on pension systems in Lithuania arose.

As usually, before presentation, the participants were enjoying networking and English breakfast, served by Sonnets restaurant.

BCC paper Spring 2013

The V Golf Club and Le Méridien Vilnius Appoints Director of Golf

11 COALESSE – For the new work day

The V Golf Club at Le Méridien Vilnius Hotel announces the appointment of Mr. Karl-Anders Grundin as Director of Golf.

Karl - Anders has long and extensive experience in the game of Golf. He has previously worked at seven different golf clubs.

Mr. Grundin will be responsible for the sales and marketing of the club’s golf programs and will use his experience to raise the service and condition to the next level at The V Golf Club.

We are looking forward to a successful golf season!

SGandA's Terry flying Solo...

He then met with Jurgita Jankuviene (Director Profesiniai Kontaktai), a valued friend and business colleague with whom he explored the possibility of running a series of HR related workshops to be marketed to Lithuanian companies, in particular for middle and senior managers.

As former senior HR professionals, Mike and Terry are keen to work with Lithuanian companies to show how an effective HR strategy can contribute to, and enhance business effectiveness.

Terry on previous visit to University.

In February Terry Gregory of SGandA paid a short visit to Vilnius to further business ties with a number of organisations.

His colleague and business partner Mike Guttridge wasn’t able to make the trip owing to a prior engagement in the UK, namely his third grandson’s christening. Unfortunately he’d missed the first two due to trips to Lithuania so he was determined to be present this time.

Terry’s first meeting was with Sandra and Jurga at the BCCL to catch up with news and events involving the chamber and explore opportunities for running workshops on leadership and management for companies in Lithuania.

The global office furniture leader‘s Steelcase purpose is to “Create great experiences wherever work happens”.

We are delighted to have a new brand COALESSE to further expand the experiences we can deliver to our customers.

Work has been freed from offices. From telephone lines. From preconceptions about where it has to happen.

That trend is now a fact of life. Those workers are us. And COALESSE is an expression of that freedom – an award-winning brand of work furnishings in the rapidly growing category we call Crossover.

Crossover means homes and offices, meeting rooms and social spaces, private retreats and public places – the fluid intersections of work and life where boundaries are collapsing and creativity is roaming. COALESSE products are

SORAINEN named “Baltic Law Firm of the Year” twice in recent months

His final meeting was at Vilnius University with Professor Dalia Bagdziuniene in the Department of Psychology. She has played a key role in developing an “employability programme” for her students to help them make the successful transition to the world of work.

For the last three years Terry and Mike have been running workshops, primarily for post-graduate students, on a number of topics such as Career Management and Presentation Skills.

It was agreed that the next workshop topic for June 2013 would be “Leadership and Communicating the Leadership Message” with the emphasis on written English.

As usual, Terry stayed at the Shakespeare Hotel, which maintains its excellent reputation for value for money - but more importantly, excellent customer service.

artfully designed to improve the quality of life at this highly fluid intersection.

We study the new work day, how people are collaborating, contemplating, and socializing.

Then we ask some of the world's most talented and internationally renowned designers including Patricia Urquiola, Scott Wilson and Jean-Marie Massaud, among others, to create artful solutions that combine comfort, function, and emotional satisfaction.

Architects and designers recommend this brand when clients want inspiring spaces to delight employees and support creative cultures. For all our customers, COALESSE helps graciously integrate work into the rest of their lives.

Wherever you are inspired to work, however you get things done, this furniture is designed to improve your day.

Law firm SORAINEN has been named “Baltic Law Firm of the Year” by two prestigious publications: The Financial Times & Mergermarket in December 2012 and International Financial Law Review (IFLR) in April 2013. SORAINEN continues to be the most awarded and internationally recognised law firm in the Baltics with eleven highly regarded awards to date.

The law firm has received The Financial Times & Mergermarket award for the second time, SORAINEN previously having won in 2008. The

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award was given to SORAINEN for its contribution to the most complex cross-border deals in the Baltic States including the strategic sale of Fortum Energiaratkaisut and Fortum Termest for EUR 200 million, Sanoma’s sale of its kiosk, book and press distribution operations in the three Baltic States for a combined value of around EUR 140 million, and Unilever’s acquisition of Ingman Ice Cream in the Baltics and Belarus.

In addition, SORAINEN won the highly regarded “Baltic Law Firm of the Year” award at the IFLR European Awards 2013 for advising the most complex and innovative international transactions in the Baltic region last year. This time recognition came for complex legal and tax assistance such as the CHF 175 million bond issue by the Republic of Lithuania and other notable deals.

SORAINEN has been honoured with this international acknowledgement three times before, in 2012, 2010, and 2009, confirming the firm’s continuous expertise in helping clients to close value-added transactions. Furthermore SORAINEN has twice been recognised by PLC Which lawyer? in 2010 and 2009 and has also received the “Baltic States Tax Firm of the Year” award from International Tax Review three times , in 2012, 2011, and 2010.

BCC paper Spring 2013

12 Diagnosis of ENT Disorders. New Opportunities at the Baltic-American Clinic

SAS Introduces New Travelling Concept with SAS Go and SAS Plus

SAS is also refreshing its looks: at Malmo airport

We are happy to share good news with you, we now have the opportunity to offer our patients a comprehensive Diagnosis of Ear-Nose-Throat Disorders. Since we have purchased the latest equipment from Germany, we have expanded our ENT disorders diagnosis capabilities for those patients who experience health problems in that field. Those who suffer from chronic ENT, sinusitis, ear infections, adenoids, throat disorders or even snoring should not hesitate and visit the BalticAmerican Clinic. Our specialists will determine the diagnosis quickly and precisely and most importantly - will offer individual therapy. Here at the Clinic we perform various examinations, tests with the help of modern endoscopic and microscopic equipment.

ENT specialists always recommend getting tested the moment you start feeling ear, nose or throat inflammation. It is important not to delay

or to wait for recovery. There are cases when physicians detect much more serious problems than patients imagined, that’s why timely initiation of medical treatment helps to prevent further development of the disease as well as complications.

The same goes for various sleeping disorders.

We urge everyone seeing their family members suffering from troubled sleep to take the first step and to get an appointment with the ENT physician. Sleep disorders cause discomfort but more importantly they are dangerous for your health. After an examination our specialists will be able to diagnose what causes troubled sleep as well as offering the most effective treatment.

Experience shows that modern medical equipment as well as knowledgeable and experienced physicians can help patients to enjoy healthy lives.

Peritus takes part in the First Project Management Championship in Lithuania

Scandinavian Airlines SAS is launching a new service concept by replacing the previous service classes with two brand new alternatives: SAS Go for customers who want to have a lot and SAS Plus for customers who want to have more. SAS has worked with customers to develop these products, which meet the increasing demand for smoother and more time-efficient journeys for both leisure and business passengers. The new service concept will start on 9th June this year.

Class back in 1982, while customer demands have changed significantly since then. Today SAS passengers demand a completely different product than the one that was competitive back then. This is why SAS has adapted a new offering accordingly by the way of co-creation and will now offer SAS Go and SAS Plus instead for all European flights. Business is still popular on SAS intercontinental routes, which is why the airline company will continue offering it on these routes alongside SAS Go and SAS Plus.

“We want to make travelling for our customers easy and simple. For SAS simplicity is when customers receive exactly what they need. When we were developing this new concept, we based it on our customer needs rather than on aviation industry standards,” says Ruta Juciene, SAS General Manager Baltic States.

SAS was the first airline to introduce Business

SAS Go will include a checked bag at no extra charge, coffee or tea onboard, as well as several services to save time, including mobile check-in.

SAS Plus will include two checked bags at no extra charge, SAS Fast Track, business lounge access, meals and drinks onboard as well as twice the number of EuroBonus points, all of this is on top of the benefits offered by SAS Go.

SC "AD REM TRANSPORT" - mostly prosperous enterprise 2013 in Lithuania The most important event in the transport and logistics sector, in the end of 2012, was the award ceremony of „Lithuanian Transport Leaders 2012“. In this event Lithuania‘s most innovative carriers, freight forwarders and logistics companies as well as their CEOs were announced and awarded. The magazine ‘‘Transportas‘‘ (‘‘Transport‘‘) arrange these awards. The 2012 event was a jubilee (the 1st event was arranged five years ago) and currently it became a Lithuanian national project.

Awards were given to the most advanced CEOs, companies, their technologies and machinery. Folowing logistics and transport representatives attended: ‘‘Baltijos media centras‘‘, the Lithuanian Logistics Association, the National Freight Forwarders and Logistics Service Providers Association ‘‘Lineka‘‘, the Lithuanian Association of Technical Inspection companies patronised by Ministry of Transport and Communications, also general sponsor – DKV, a company that provides transport companies with as extensive range of services.

In the event of „Lithuanian Transport Leaders 2012“ the award of „Mostly prosperous enterprise 2013“ was given to AD REM TRANSPORT director Mr. Darius Brekys. The symbol of this award is a cup.

The First Project Management Championship The first Project Management Championship in Lithuania took place in Vilnius on April 6th, 2013.

The event organised by the IPMA Young Crew Lithuania was dedicated to students from all Lithuanian universities and colleges, who are interested in the subject of project management PERITUS, company company become a

project management consulting was sponsoring the event and a representative was also invited to member of the jury.

“It is an honour to make this contribution to the Project Management Championship, an event helping the project management profession be more recognized in Lithuania,” said PERITUS director Andrius Siaudinis. “PERITUS is committed to the development of project management maturity. I want to thank the IPMA Young Crew Lithuania for this great event to which we are certainly happy to contribute.”

First of all, participation in the championship gave students the opportunity to apply the knowledge gained during their studies in practical situations.

Secondly, they had a chance to meet experts

from the project management field, to get some practical advice from them and to share best practices with colleagues.

There were 29 teams participating in 2 rounds during the first Project Management Championship. After the first round only the 6 best teams from the ISM University of Management and Economics, Kaunas University of Technology, Vytautas Magnus University, Vilnius University, The International School of Law and Business and Vilnius Gediminas Technical University entered the final round.

During the finals, the teams worked on a case study to prove their skills in project management and presented the result of their work to the jury. The winner of the championship was announced as the team from the ISM University of Management and Economics. Second place went to the team from Kaunas University of Technology and third place went to the team from Vytautas Magnus University. The special prize for creativity sponsored by PERITUS went to the team from the International School of Law and Business.

Congratulations to all the participants and organizers.

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BCC paper Spring 2013

VARUL once again listed among top Baltic law firms by Legal 500 The newly published independent legal directory The Legal 500 ranks Law Firm VARUL as a top tier firm in all key practice areas including corporate and M&A, dispute resolution, EU and competition, IP, IT and telecoms, real estate and construction, shipping and transport and tax.

Clients of VARUL Lithuania praise the firm’s level of service and the team for being ‘very proactive, quality-oriented and highly professional’. Legal 500 acknowledges the work done for the USbased Littlefuse on its €25m acquisition of Swedish company Accel, also for the engineering group Trelleborg on its €23.7 takeover by Ansell as well as the advice given to Mebelain on the financing of a factory development in Belarus, which involved a €5m loan from the EBRD. Robert Juodka is the lead partner.

VARUL Estonia holds a strong position among the ‘Big Six’ and is ranked as a top tier firm in almost all key practice areas under research. Legal

500 refers to several noteworthy cases including successful representation on fuel retailers, assisting Euroapteek in a court dispute against State Agency of Medicines as well as successful representation of Viis Veeringut in a real estate dispute against the Estonian Ministry of Culture.

Partners Paul Varul and Helmut Pikmets are especially endorsed as leading individuals for their dispute resolution skills.

The well regarded tax practice of the firm’s Latvian office receives the highest ranking and the team is commended for the work they did for one of the largest tour operators in the Baltics – Novatours. The team advised Novatours on a European Court of Justice ruling affecting tour operators as well as on the company’s new employment structure. Legal 500 named Vita Liberte as one of the key figures in the team of tax specialists, which is adept at tax planning, compliance and audit assistance.

Legal 500 is the leading independent provider of legal market information offering authoritative and in-depth market analysis since 1987.

Our goal is to uphold human dignity

Psychotherapist Raimundas Alekna, head of “Ąžuolyno klinika” and the Vilnius Centre for Psychotherapy and Psychoanalysis The most state-of-the-art psychiatry institution in Lithuania, “The Ąžuolyno klinika” in Vilnius is about to open a new 15-bed branch in the town of Širvintos. Medical help there will be provided free of charge, as the costs are covered by the territorial health insurance funds. The new branch will be treating patients who need permanent help for up to two months.

This clinic is the only private stationary psychiatric hospital in Lithuania. Its staff observes that more and more patients seek help when the ailment has gained a chronic course. Instances of grave depression and anxiety disorders are

currently on the increase. Professionals have raised the concern, that a stigma of negative opinion towards psychiatric and psychological help in Lithuania hinders people in seeking help at early stages of the illness, without deepening the damage to their health. Not enough attention is being drawn to preventing suicides.

“Our aim is to offer help within an environment that values human dignity; we treat with the most advanced medicine, as well as applying various psychotherapeutic techniques, in accordance to the individual need of our patients”, psychotherapist Raimundas Alekna, the head of “Ąžuolyno klinika” says. – “It still happens, that a person would rather choose death than help from a state-run psychiatric ward. Therefore, private psychiatric clinics, where one does not need to fear for their dignity and anonymity, are essential in preventing suicides.”

Over 1000 patients, suffering from various mental disorders - from depressions to different dependences - enjoy the services of “Ąžuolyno klinika” annually. The stationary hospital operates 24 hours a day. Not only Lithuanian citizens are treated there. According to current EU regulations, a person with valid health insurance can seek medical help in any EU member state. However, there are various restrictions, so each case is discussed individually.

“We need to compare many emigrants and their families, running into mental problems due to altered living conditions”, - Mr. R. Alekna explains what kind of patients need help. Moreover, emigrants frequently request help for their families and parents, remaining in Lithuania.

For those patients who require ambulatory treatment, we recommend Vilnius Centre for Psychotherapy and Psychoanalysis, because we know and trust their highly skilled staff.

13 Storebrand Baltic: Rapid growth and aiming for Centre of Excellence experience great results in all areas, states Siw E. Seland, general manager at Storebrand Baltic.

The increase in the work tasks performed at the Vilnius office is a result of the high level of satisfaction with the processes already accomplished at Storebrand Baltic. With the experience and increased knowledge within the field Storebrand Baltic now has the foundation to become a Centre of Excellence for operational processes in the Storebrand Group.

Siw E. Seland, General Manager at Storebrand Baltic More tasks being relocated from Norway and Sweden is good news for Storebrand Baltic, the Storebrand Group's shared service centre in Vilnius. So far this year Storebrand Baltic has recruited more than 40 new employees, and plans to hire an additional 50 highly skilled workers by the end of 2013, which will result in a total number of 300 employees.

- We appreciate that more tasks are being offshored to Storebrand Baltic. Although this rapid growth is demanding, we continuously

- This shows that the rest of the Storebrand Group appreciates the quality of our services and the competence among our highly skilled employees, says Mrs Seland.

Storebrand Baltic was established in Vilnius in 2007 by the banking division. Good results and a high standard of work inspired other parts of the group to offshore more complex tasks to the Vilnius office. Most of the employees so far have been hired after graduating from university, but the new strategy will make it necessary to also hire candidates with more work experience.

- We need a good mix of newly graduated students and more experienced employees, says Mrs Seland.

Amber staff celebrates its first anniversary

On the 24th of April 2013, Amber staff celebrated its first anniversary. One year ago, Amber staff was established by young entrepreneurs Vaida Pociute Borteliene and Toma Vevelstad. Reflecting on the company’s first year, co-owner and director of Amber staff, Toma Vevelstad, said: After one year of Amber staff I have to admit- it

exceeded all my expectations. The awareness of temporary staffing is growing and the labour market is opening up for new flexible ideas. Companies from various industries are looking for ways to increase their efficiency using flexible HR solutions.

Our main goal remains the same- support our clients by leasing them specialists and unskilled labour for temporary or permanent assignments. I am proud to say that Amber staff is gaining it’s share in the recruitment market in Lithuania because of it’s proven quality and care of clients. We have also expanded our activities abroad and now we select and provide specialists for such markets as the UK, Norway, Netherlands and Greece.

Amber staff is enthusiastic about the first year results. The company increased their brand awareness and was able to acquire a position in the recruitment and temporary staffing field.

Amber staff would like to express their thanks to their valued customers and partners for their trust in the company.

Kempinski Hotel Cathedral Square Named One of the Best New Hotels by Condé Nast Traveler US

New dentist joins Odontika Odontika recently had patients from 8 different countries excluding Lithuania in one day. A clinic record, from New Zealand to Norway and USA to Ukraine, with the destination Uzupis “Republic” Vilnius. Who is to say that one day Vilnius and Lithuania will not be a major global destination for dental and medical treatments, it might just already be here.

Vilma Karlonaite (pictured) joined the Odontika team almost a year ago. Vilma’s field of interest in dentistry is endodontics, therapeutically dental treatment and prophylaxis.

Vilma Karlonaitė

The Odontika team is supporting “Blossom of Hope 2013” cancer charity event that raises money for biopsy needles in Lithuania and awareness of cancer treatment. Organized annually by the International Woman’s association of Vilnius.

Condé Nast Traveler US selected Kempinski Hotel Cathedral Square as one of the best new hotels in 2013. The purveyor of fine hotel reviews and travel advice has just released its 2013 edition of the Hot List, a list of hotels that are setting the hotel world aflame with fresh designs and new concepts or offering a strong new take on classic luxury. Kempinski Hotel Cathedral Square was selected by the magazine as one of 154 hotels around the world named to the category, “The Best New Hotels of 2013”. Overall, more than 1,000 hotels from different countries around the world were considered and 154 were selected, making the 2013 Hot List the largest one ever.

“Being listed in the Condé Nast Traveler US Hot List 2013 is probably the dream of every hotelier, since experts in the travel trade select hotels care-

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fully and anonymously. To be one of the top 154 hotels opened worldwide is not an easy feat. This is the result of hard work from the whole team.

I am so proud that we have achieved so much in such a short time frame, considering we just opened our doors last September. Our aim is to exceed our guests’ expectations though our product offerings and service standards, and we are extremely pleased with the encouraging results of the first months”, said Noel Attard, the General Manager of Kempinski Hotel Cathedral Square.

The “The Best New Hotels of 2013” list was created by the experts of Condé Nast Traveler magazine, who travel around the globe evaluating such aspects as the style, location, service, convenience, comfort and luxury of a hotel. All visits are made unannounced and anonymously.

BCC paper Spring 2013

14 Presenting New BCC Members BCC Corporate Member Schage Real Estate, UAB

„Schage Real Estate“ belongs to the group of Norwegian companies managed by the family of Schage. The origin of the company determines its attitude. We belong to the group of companies managed by a single family; therefore we follow a certain business culture, the basis of which is an attentive attitude towards employees and clients. It contributes to the results of the company.

The overall annual turnover of the company „Schage Group“ is 174 mln. litas while the private capital value of „Schage Eiendom“ amounts to 1,04 bn. litas.

The company operates in Lithuania since 1998.

We are pleased by our successful projects: an ensemble of administrative buildings in the reconstructed former monastery in Subačiaus

BCC Corporate Member AD REM TRANSPORT, UAB

Head of the company Darius Brekys (left), director of development Mantas Marcinkevicius (right)

UAB “AD REM TRANSPORT”- international and local cargo transportation and forwarding services. Provides road, rail, air, sea transportation & forwarding services; multimodal transportation services; local cargo transportation services; international diplomatic cargo transportation and removal services; transportation of valuable, hazardous and specific cargo and other.

2012 autumn AD REM TRANSPORT split from companies group AD REM GROUP and became closed stock company and became the most promising company of 2013.

Competence assurance: * Lloyd’s Register Quality Assurance approval to the following Quality Management System Standard: ISO 9001:2000. The Quality Management System is applicable to: Provision of cargo transportation and forwarding services * Individual FIATA membership * IATA member; * LINAVA (Lithuanian National Road Carriers’

street and an office centre in Vytenio street, a complex of residential houses in the Old Town of Vilnius „Mikalojaus žiedas“, a residential building in Žvėrynas district, in Latvių street, and others. Our parent company has developed and built quite a few A class office projects in Oslo „Skoyen Atrium“ (40.000 m²), „Skoyen Atrium III“ (25.000 m²), „Helsfyr Atrium“ (38.000 m²). Furthermore, an office project in Kristiansand (70.000 m²).

Now we are developing the biggest multifunctional and innovative business centre in Vilnius “Quadrum” on Konstitucijos avenue. Efficient use of energy, socially responsible environmental sustainability and high level of comfort required for modern businesses will be guaranteed by the BREEAM certificate.

Flexible adaptation of areas to the specific needs of companies will help companies better achieve their objectives.

We view “Quadrum” as the business city providing the most successful Lithuanian companies with inspiration and creating new opportunities for them.

Company contact details: Shage Real Estate, UAB Address: Mikalojaus Žiedas, Šiaulių str. 10-57, LT-01134 Vilnius Tel.: +370 5 266 03 10 info@schage.lt Website: www.schage.lt

BCC Corporate Member Karen Millen Glamorous, distinctive clothing and accessories for the confident, uncompromising woman of today.

One of the great success stories of British Fashion, Karen Millen is internationally renowned for offering versatile investment pieces that provide attainable luxury and effortless polished glamour for women worldwide.

OUR STORY: Started in 1981 by Karen Millen and Kevin Stanford, as an independent label uniquely positioned in the marketplace offering designer style at the top end of the high street, Karen Millen has since gone on to become an iconic global brand offering aspirational luxury at accessible prices. Its global presence now stretches from the UK to Europe, Russia, Asia and Australia with over 320 stores worldwide and a presence in over 40 countries.

BCC Small Company Member Raimda auditas, UAB

Association) member * LINEKA (Lithuanian National Freight Forwarding Association) member; * LLA (Lithuanian Logistics Association), one of cofounders.

Road transport. Road transportation is the biggest division in Transportation department. Qualified transport managers forward cargoes to/from all the European and CIS countries.

Rail transport. Contracts with Lithuanian (AB „Lietuvos geležinkeliai) and Latvian (VAS „ Latvijas dzelzcelš“) railways, as well as wide network of agents and partners in EU, Russia, Byelorussia, Ukraine, Kazakhstan, Central Asia and Baltic States enable to propose competitive rates and high quality service to our clients.

Air transport. AD REM TRANSPORT air freight forwarding department successfully offers top quality air cargo services in Lithuania for more than ten years. Our qualified personnel handles both import and export shipments.

Sea transport. Cargo transportation by sea is often the most efficient way to transport heavy, large, or non-standard cargo. Cooperation with international maritime companies provides AD REM TRANSPORT with possibilities to transport cargos by sea transport from terminal to terminal, or from door to door to/from all over the world.

Close to the world, close to You. Company Contact Details: AD REM TRANSPORT Address: Metalo st. 2A/7, LT – 02190 Vilnius, Lithuania Tel: 8 700 55550 www.adrem.lt

Daiva Žumbakienė, Director

The Lithuanian entity, UAB Raimda auditas, is included in the list of Lithuanian licensed audit companies.

The firm‘s director, Daiva Žumbakienė, has Lithuanian auditors certificate, a membership of ACCA (Association of Chartered Certified Accountants), ACCA practicing certificate, Furthermore, she has graduate Oxford Brookes University.

The Audit company provides all services related with audit (audit, internal audit, review, etc). The company’s specialised in the application of these issues: •International Federation Reporting Standards (IFRS) •Lithuanian Business Accounting Standards •Lithuanian Public Sector Accounting Standards UAB Raimda auditas provides bookkeeping services in remote distance possibility and in usual manner.

Qualified company’s employees provide services

BCC Corporate Member TAEM Urbanistai, UAB

Kristina Gaučė, Director

UAB TAEM Urbanistai – A company specialising in urban and spatial planning services and sustainable transport and mobility management consultancy.

TAEM Urbanistai is one third of TAEM Group1 and comprises a team of 24 highly skilled urban and spatial planners; GIS experts; and sustainable transport and mobility management consultants.

We have accumulated rich experience of expertise in the development and preparation of urban and spatial sectorial planning, including many different areas of Special Plans, Master Plans, and Detailed Plans. Within each of these, we cover: • neighbourhood residential areas, separate living areas, landscaping and recreation plans • major shopping centre layout specific plans; tourism and recreation special plans; • economic development plans for all utilities; storm water infrastructure, bulky waste site plans • infrastructure sanitary protection zones, sur-

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Company Contact Details: Address: PC Europa, 2 floor, Konstitucijos ave. 7A, Vilnius www.karenmillen.com in such complicated tax and legal issues: • Transfer pricing • Transfer of taxable looses between related parties • Similarities and differences between patient royalty and honorary • Free of charge dividends in Europe Union and complicated issue regarding to taxation of dividends • Application of resident or non resident in particular situations •Application of VAT law and VAT Regulation •Application of financial instrument in accounting and tax areas • Application difficulties in Summary Recording of Working Time area and other labour legal issues •Application of Exemptions of the Lithuanian Companies Income law • other tax areas (personal income tax, pollution tax) etc.

It is more usual practice in Lithuania, when small companies takeover large projects.

Some small audit companies make joint legal partnership arrangement in order to provide successful competition with large accounting and audit entities.

Result positive - client receives high quality services to compare with reasonable price.

UAB Raimda auditas provides all before mentioned services in Lithuanian and English languages.

Company Contact Details: UAB Raimda Auditas Address: Laisves ave. 101A, Kaunas, Lithuania Tel.: +37061654450 info@raudit.lt www.raudit.lt face water protection zones and coastal protection region special plans; • transportation systems, local roads, bicycle paths, parking plans.

To complement our urban and spatial planning activity, we have a team of sustainable transport and mobility management experts with a wide experience of working with partners across Europe and near neighbour states. Our work here includes developing and improving access/exit mobility, transport planning research studies, and business based travel plans. Related to sustainable transport and mobility management, we also initiate and actively participate in national and European partnership projects with European Commission co-funding.

TAEM Urbanistai approach is always to look at the wider sustainable impacts of our work and to ensure that the legacy we leave is one that will last and is sustainable. TAEM Urbanistai is ISO 9001 accredited and ISO 14001:2005 and BS OHSAS 18001:207 compliant.

1 Formally JSC Statybos Strategija. Established in 2003, the company changed its name in 2012 to TAEM Group and formally split into three specific sector companies UAB TAEM Urbanistai, UAB TAEM architektai“, and UAB „TAEM projektų valdymas“

Company Contact Details: Address: Smolensko g. 10, 03201 Vilnius, Lithuania Tel: +370 5 278 8433 Fax: +370 5 278 8789 E-mail: urbanistai@taemgroup.lt

BCC paper Spring 2013

List of BCC Members

15

BCC Sponsor Members Baltic American Medical & Surgical Clinic (www.bak.lt )/ Health Care BALTIC SURVEYS (Baltijos Tyrimai, UAB) (www.gallup.com) / Market research Bunnahabhain rep. by Mineraliniai vandenys, UAB Production of single islay malt Scotch Whisky www.bunnahabhain.com

BANKSERVIS, UAB (www.bankservis.lt) / Bank and office equipment, security products and solutions BARCLAYS Technology Centre Lithuania (http://www.lifeintechnology.co.uk/global-locations/vilnius-lithuania/) / one of strategic IT engineering centres providing support for Barclays business activity worldwide.

BERNOTAS & DOMINAS GLIMSTEDT (www.glimstedt.lt) / Legal services

Baltic Legal Solutions Lithuania Full service law firm www.blslawfirm.com

Carlson Wagonlit Travel Corporate travel management www.carlsonwagonlit.lt www.kalevatravel.lt

DNB bankas Banking www.dnb.lt

GlaxoSmithKline Pharmaceuticals www.gsk.lt

Best Western HOTEL VILNIUS (Naujasis Vilnius, UAB) (www.vilniushotel.eu) / Centrally located Hotel, restaurant, conference centre, fitness centre, swimming pool and sauna BIKUVOS Prekyba, UAB (www.bikuva.lt) Retail Building supply and household goods NEW! BITĖ LIETUVA, UAB (www.bite.lt) / Telecommunications BIURO PASAULIS, UAB (www.biuropasaulis.lt) (www.elektromedia.lt)/ /Office supplies, printing management and IT solutions BNTP, UAB (www.bntp.lt) / Private equity investment; real estate development and investment; asset management; project management; facilities management Bright Purple Resourcing (www.brightpurple.co.uk) / Technology and financial services recruitment specialists British Council (www.britishcouncil.lt) / the United Kingdom’s international organisation for cultural relations and educational opportunities.

Calenberg Vilnius (www.calenberg.lt )/ International moving/ relocation and dealership of the office furniture- STEELCASE CALLCREDIT OPERATIONS, UAB (www.callcreditgroup.com) / Experts in the fields of credit referencing, marketing services, consumer information, interactive solutions and consultative analytics.

CAMIRA FABRICS Ltd (www.camirafabrics.com) / Contract seating & transportation fabric manufacturer COWI LIETUVA, UAB (www.cowi.lt) / Consulting and engineering services related to building design & engineering, energy, environment, territory planning, topographic survey, hydraulic engineering, technical supervision, water and sewage systems design CORMACK CONSULTANCY BALTIC LT Ltd (www.ccbaltic.eu)/ Business development, export development, market researches, consultancy in investment, innovation, management - Baltic states, UK, Rusia, India, Italy markets

PricewaterhouseCoopers Assurance, Actuarial, Advisory, Tax and Legal services www.pwc.com/lt

Strategic Staffing Solutions International Provider of information technology solutions.

Recruitment Services www.strategicstaff.com

BCC PR Partner

CSC Baltic, UAB (www.csc.com/lt) / IT services and outsourcing DELOITTE (www.deloitte.lt) / Audit. Tax & Legal. Consulting.

Financial Advisory. Enterprise Risk Services DELTA MANAGEMENT SOLUTIONS, UAB (www.deltamanagement.lt )/ Recruitment, Executive Search, Temporary Staffing, Employment Services, Personnel Testing & Assessment, Greenfield Staffing Support DPA LIETUVA (www.dpa.lt) / IT infrastructure solutions, IT security solutions, Solutions for Education, software deployment and management, information and document management system, customized IT projects DPD LiETUVA (www.dpd.lt) / Parcels delivery for business and private customers within Lithuania & EU countries, logistics solutions for business EFT Lithuania, UAB (www.eft-group.net )/ Electricity Trading Company EKO RIVI, UAB (www.ekorivi.lt) / Consultancy in municipal and environmental infrastructure EUROMONITOR INTERNATIONAL (www.euromonitor.com ) / Provider of strategic market research on countries, consumers and industries EVERSHEDS SALADŽIUS (www.evershedssaladzius.lt) / Legal services

BCC Accounting Partner

FINANCIAL MANAGEMENT GROUP, UAB (www.fmg.lt) / Accounting, tax consulting, legal advice G4S Lietuva, UAB (www.g4s.lt) / Security Solutions covering cash handling, guarding, electronic security, system maintenance, installation, courier service GrECo JLT Lietuva, UADBB (www.greco.lt ) / Insurance intermediation GUARTIS, AB (www.guarti.lt) / Glass processing & container glass manufacturing

BCC Corporate & Group Members AD REM TRANSPORT, UAB (www.adrem.lt) / Forwarding and logistics NEW! ARIJUS (www.arijus.lt ) / Transport and Logistic services AVIS Rent a Car & Leasing Company (Litideal, UAB) (www.avis.lt) / Car rental and leasing AVIVA LIETUVA, Joint Stock Limited Life Insurance and Pension Company (www.aviva.lt) / Life insurance and pension funds ĄŽUOLYNO Clinic (www.azuolynoklinika.lt) / The first private clinic in Lithuania for psychological problems, psychiatric disorders, alcohol and drug addiction treatment, long – term nursing.

Patients can be consulted or hospitalised Baldai Jums, UAB (www.BaldaiJums.eu) / Solid wood furniture production

HIGHLIFE, UAB / Manufacturing for export timber components for the furniture and construction industries HOTEL VANAGUPĖ (Eskom, UAB) (www.vanagupe.lt) / 5* Hotel, Modern Conference centre and luxury GOLDEN Spa centre, gourmet cuisine restaurant L’Ambra Rossa ISM University of Management and Economics (www.ism.lt) / Higher education JURIDICON, Law Firm (www.juridicon.com) / Legal services, tax consulting, corporate services, legal project & risk management. Member of Warwick Legal Network.

KAREN MILLEN (www.karenmillen.com) / retail, women clothing NEW! KAUNAS FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.ftz.lt ) / Real estate development KERNAVĖS BAJORYNĖ, Conference and Leisure Centre (www.kernavesbajoryne.lt )/ Conferencies, leisure and other activities KLAIPĖDA FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.fez.lt) / Management and development of Klaipėda Free Economic Zone

KPMG Baltics, UAB (www.kpmg.com/lt ) /Audit, Tax, and Advisory services LEINONEN, UAB (www.leinonen.eu) Accounting services LE MERIDIEN VILNIUS & V GOLF CLUB (VILLON, UAB) (www.lemeridienvilnius.com) / 5 star Hotel, 8.000m2 Conference Centre, Catering Services, Spa, Fitness Centre, Leisure, PGA design Golf course, Over the water restaurant, Real Estate LawIN (www.lawin.com) / LAWIN is a leading and internationally highest ranked business law firm in the Baltics.

MOTIEKA & AUDZEVIČIUS, Law Firm (www.ma-law.lt) / Legal services MIRROR SUPPORT SERVICES, UAB (www.mirroraccounting.lt ) / Accounting services NOVOTEL VILNIUS CENTRE (Hekon, UAB) (www.accor.com) / Hotel services ODONTIKA (www.odontika.com) / Dental surgery PERITUS SPRENDIMAI (www.peritus.lt) / EU funding, Project Management, Public Procurement, Strategic Research, PPP PUBLICUM, UAB (www.publicum.lt) / Public Relations, Public Affairs, Management consulting and training PZU Lietuva, UAB DK (www.pzu.lt ) / Insurance QUANTUM CAPITAL (www.qcapital.eu ) / Investment banking & strategic advisory boutique Radisson Blu Hotel Lietuva (www.radissonblu.com/ lietuvahotel-vilnius)/ Hotel, biggest centre located Conference and Event centre, Riverside restaurant, Skybar, Lobby bar, fitness centre and sauna Radisson Blu Astorija hotel (www. radissonblu.com/hotel-vilnius) /Hotel, French restaurant „Brasserie de Verres en Vers“, Astorija Bar, Meetings & Events center, Catering services, Health club with swimming pool Raidla Lejins & Norcous (www.rln.lt) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus REGUS (www.regus.lt ) / The world leading provider of pioneering workplace solutions, with a large range of products and services from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconference studios SCAENT Baltic, JSC (www.scaent.lt) / Investment Enterprise Scandinavian Airlines SAS (www.flysas.lt) / / the biggest airline company in North Europe operating in Lithuanian for 20 years with the regular flights from Vilnius and Palanga SCHAGE Real Estate (www.schage.lt) / Real estate development company. Investing in, renting and selling premises for office, residential and commercial use NEW! SHAKESPEARE Boutique Hotel (Olizarų rūmai, UAB) (www.shakespeare.lt) / Boutique hotel, Sonnets restaurant, Globe bar, conference halls SORAINEN (www.sorainen.com) / Legal services in all fields of business law in the three Baltic countries and Belarus Storebrand Baltic , UAB (www.storebrand.com) – Shared service centre for Storebrand ASA in Norway and SPP in Sweden. Financial services within life- and health insurance, banking and asset management Sue’s Indian Raja (www.suesindianraja.com) / Indian Restaurant SWEDSPAN Girių Bizonas (www.swedspan.lt) / Particle board production TAEM Urbanistai (www.taemgroup.lt) / engineering solutions NEW! TARK GRUNTE SUTKIENE, Law Firm (www.tarkgruntesutkiene. com) /full-service business law firm in the Baltic region and Belarus TRANSCOM Worldwide Vilnius (www.transcom.com) / International provider of outsourced services and solutions in the field of customer contact (client relationship management & credit management). Near shore outsourced services from Lithuania to UK and other European countries VARUL, Law firm (www.varul.com ) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus Western Union Processing Lithuania UAB (www.westernunion.com) - Financial Services ZABOLIS PARTNERS (www.zabolis.com) / Finance and Real Estate Žemaitijos pienas (www.zpienas.lt/) / Production and sales of milk products

BCC Small company Members 999 Design Group (www.999design.com/) / Branding, Communications, Marketing, Packaging, Event, Digital media, Web Design Agency

translations to Lithuanian and foreign companies GENCS VALTERS, Law Firm (www.gencs.eu ) / full service, general practice international business law firm with offices in Riga, Tallinn and Vilnius focused on tax, litigation, M&A, corporate, immigration, finance and intellectual property law Growing Talent (www.growingtalent.eu/) / Providing executive coaching, and delivering training for leadership and talent development LONDON INTERNATIONAL SCHOOL OF LANGUAGES (www.londonisl.com) / Business courses, specialized training for both IELTS and TOEFL university admission exams STRESS REGRESS (www.stressregress.com) / A business partnership dealing with stress issues, including testing, measurement and treatment, and offering advice for a healthier lifestyle including exercise, diet and supplements, among other options.

MAGISTRAI (www.magistrai.lt) / Translation and interpretation services NEW! RAIMDA Auditas (www.raudit.lt) / Audit NEW! SGandA (Smith Guttridge & Associates) (www.smith-guttridge. eu) / Business Psychology & HR Consulting including training/ coaching, career management and team and leadership development.

Tauragė Industrial Park (www.tip.lt)/ Industrial premises for rent in Southwest Lithuania Vilnius International School (www.vischool.lt) / International Baccalaureate World School. Early childhood education, primary and middle school VINKLERIS and partners (www.legalconsulting.lt/) / international law firm providing legal advice regarding taxes, company establishment and competition, as well as family and labor law issues

BCC Social Members Chris Butler Christian Ranft Erika Cisotti Geoffrey Cohn Hugh Miles Thomas OBE, FCA Dr Helene Ryding Jūratė Rusteikaitė – Bakšienė Mark Whittle Mervyn Richardson Mike Little Richard Wernick Ron Sheppard Sigitas Žutautas

BCC Board 2013-2015 Honorary President David Hunt, HM Ambassador to Lithuania Chairman Chris Butler, BCC Social member Field of interest in the board – Events Treasurer Mike Little, BCC Social member Algirdas Pekšys, SORAINEN, Field of interest in the board - Goverment relations, Trade & Investment promotion Alistair Day-Stirrat, Odontika, Dental Surgery Field of interest in the board - BCC paper Asta Grabinskė, AVIVA Lietuva Field of interest in the board – Government relations Ben Harvey, Growing Talent Field of interest in the board – CSR Frank Reul, Accor Hotels Field of interest in the board – Events Giedrius Dzekunskas, Barclays Technology Centre Field of interest in the board – Trade & Investment Promotion

A Hostel ( www.hostelsvilnius.lt) / Accommodation Services AMBER STAFF (www.amberstaff.com) / Temporary staffing and employee leasing ARTAPRO (www.artapro.lt) / Creative property management BALTIC HOLIDAYS (www.balticholidays.com) / Tour operator in the UK specializing in Lithuania, Latvia & Estonia BCS International (www.bcsinternational.net) / The Behaviour Change Specialists, are an international people development organisation, dedicated to the practical use of emotional intelligence to improve individual and team performance.

Nick Price, Bright Purple Resourcing

DEKONA, Evaldo Darškaus IĮ (www.dekona.lt ) / Management Consulting: Operational efficiency, Lean, Six Sigma, process improvement

Field of interest in the board – Trade & Investment

DRUSKOS NAMAI (www.druskosnamai.lt) / Restaurant Eurocontinental Limited / Textiles FINREDA, UAB (www.finreda.net) / Corporate services provider.

Legal, financial and business consulting & services including

BCC paper issue is kindly sponsored by

Field of interest in the board – Trade & Investment promotion, Events Robertas Juodka, Law Firm VARUL Field of interest in the board - Trade & Investment promotion, Membership Toma Vevelstad, Amber Staff Field of interest in the board – Membership Viktorija Trimbel, Quantum Capital Promotion Observer Ieva Binkauskaitė, British Embassy, UK Trade and Investment Section

BCC paper Spring 2013

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