You're reading: Lithuania breaks up Gazprom monopoly on gas

VILNIUS, Lithuania (AP) — Lithuania's president has signed a law that will break Gazprom's control over natural gas supplies and distribution in the Baltic country.

President Dalia Grybauskaite said Wednesday that the legislation will open up competition in the sector and ensure that Lithuania does not remain dependent on one sole gas supplier.

Gazprom currently provides all of Lithuania’s gas supplies and owns 37.1 percent of Lietuvos Dujos gas company, the country’s dominant gas supplier.

The Russian gas company has vehemently opposed the law, which is in line with a European Union directive aimed at splitting monopolies on gas supplies and distribution networks.

Russia has threatened to raise gas prices if the legislation goes into effect.