VILNIUS, Oct. 18 (Xinhua) -- Lithuanian state-controlled railway company Lithuanian Railways said on Wednesday it would appeal against the 28 million euros (32.9 million U.S. dollars) fine charged by the European Commission (EC) for breaching competition rules.
By appealing against the fine, the company aims to diminish the impact of the fine for the company and defend its reputation, according to Mantas Bartuska, the chief executive of Lithuanian Railways.
"The fine is big. It is unprecedented for the case to last for nine years. There are clear opportunities to reduce or even cancel the fine," Bartuska told a local press conference on Wednesday.
Lithuanian President Dalia Grybauskaite said Wednesday that Lithuanian Railways does not intend to deny the violation, but intends to appeal the size of the fine.
Two weeks ago, the EC imposed a fine on Lithuanian Railways for dismantling a 19-km railway track to neighboring Latvia in 2008, thereby preventing oil company Orlen Lietuva, a subsidiary of Polish oil company PKN Orlen, from using the services of other railway companies. Orlen Lietuva is a major customer of Lithuanian Railways. The EU's rail freight market was liberalized in 2007.
The EC noted that Lithuanian Railways, as a vertically integrated company, are responsible for rail transport as well as for railway infrastructure.
On Wednesday, the head of Lithuanian Railways said the company would consider rebuilding the railway track to Latvia in the near future in order to settle the issue.
