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In its attempts to privatise its economy, the Baltic state of Lithuania has found itself caught in a business tussle between Russian and American interests.
The Oklahoma-based company Williams International is seeking to purchase a 33 per cent stake in the Mazheiku oil refinery for $150m but has run into opposition from the Russian oil group Lukoil.
Lithuania's ruling pro-western Conservative Party has strongly backed the sale to the US company, arguing that a strong American investment presence would raise its international profile.
The party has pushed laws through parliament to facilitate the privatisation and set an October 29 deadline for signing the deal.
Lukoil, which is also Lithuania's oil export co-ordinator and its sole supplier of crude, has threatened to boycott the country unless it is given a 33 per cent stake.
Russian crude supplies to Lithuania have been cut twice this year as the Russians "cleaned the pipes".
The Lithuanian representative of the Russian Oil and Gas Industrialists Union lobby has also warned that unless Lukoil is appeased, the refinery will be as good as "scrap metal".
His claims are backed up by the director of Mazheiku who has predicted more crude disruptions unless the Russians are included.
Williams is adamant that the Russians should not be involved in the operations. "We cannot go into this deal without having operatorship," said Darius Shilas, spokesman for Williams Lithuania.
It prefers to deal with Russian oil company Yukos, which has offered to guarantee crude supplies in return for a 5-10 per cent stake in the refinery.
Although the deal is likely to go through with some sort of Russian presence, the issue remains divisive.
Opposition parliamentarians such as former President Algirdas Brazaukas are against the deal which entails Lithuania refinancing the ailing refinery's debts. Some stormed out of parliament last week while hearings were going on.