VILNIUS, October 2 - RAPSI. The Lithuanian Finance Ministry will represent the country in the event of litigation with former Snoras bank shareholder Vladimir Antonov, the ministry's public relations adviser Rasa Jakilaitiene told RIA Novosti on Tuesday.

The ministry has already retained two law firms. The former shareholder of the now bankrupt Snoras plans to file a claim against Lithuania over investment losses in a New York court.

The Lithuanian prosecutors suspect him of criminal activity and seek his extradition to Lithuania.

On November 16, 2011, the Lithuanian government decided to nationalize Snoras to rescue the bank from bankruptcy. The formal reason was its failure to meet the watchdog's request for information in addition to its poor financial state. The bank was also suspected of illegal transactions.
Snoras then suspended its operations.

The Bank of Lithuania later acknowledged that even a federal funds injection would not save the bank and decided to shut it down. The court declared Snoras bankrupt on December 7.

The decision came into force on December 20, 2011.

"I heard from Antonov's lawyers in May about their intent to sue Lithuania," Jakilaitiene said. "At a meeting on June 13, the government decided that the ministry should represent the country in the dispute over Snoras." She added that the Finance Ministry has executed letters of engagement with the Swiss Lalive and the Lithuanian Sorainen Ir Partneriai law firms, which are acting under an agreement on joint activities.

Their services have been retained for three years.

"The ministry has allocated 10 million litas (2.9 million Euros) for the anticipated litigation," she said. "About 8.7 million (2.5 million Euros) will be spent on legal fees, and the rest will go toward third party expenses, such as translation services, as the trial will be held outside of Lithuania."

Both major Snoras shareholders - Antonov and Raimondas Baranauskas - are suspected of embezzling the bank's assets and financial fraud. They were arrested in London in late November upon the request of the Office of the Prosecutor General's Office. They were later released on bail.

A UK court has frozen Antonov's assets, worth 493 million Euros based on the Snoras bankruptcy administrator's request.

Antonov was unable to explain the disappearance of 4 billion litas (1.158 billion Euros) from the bank.

Antonov and Baranauskas have claimed their innocence on several occasions and called the decision to nationalize the bank and the subsequent bankruptcy politically driven.