Tycoon challenge to ruling political elite of Lithuania

LITHUANIA: Lithuania is bracing itself for a power struggle between its ruling elite and a Russian-born gherkin tycoon whose…

LITHUANIA: Lithuania is bracing itself for a power struggle between its ruling elite and a Russian-born gherkin tycoon whose newly formed party triumphed in general elections.

Agribusiness millionaire Mr Viktor Uspaskich hinted at prime ministerial ambitions after his Labour Party took 23 seats in parliament, while the governing coalition and its erstwhile Conservative foes vowed to try and block his path to power.

"I would not be a worse prime minister than those from previous governments," Mr Uspaskich said in a newspaper interview, as the centre-left coalition of Social Democrats and Social Liberal digested its disappointing 19-seat tally.

"We will be able to stop corruption, which is out of control," insisted the entrepreneur, who has amassed a fortune of €160 million since moving to this Baltic nation in the late 1980s, when he married a Lithuanian and took citizenship.

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Critics accuse Mr Uspaskich of making brazenly populist promises that will be impossible to keep in a bid to woo the many Lithuanians who have felt no benefit from strong economic growth and membership of the EU.

With unemployment running at about 11 per cent and prices nudging upwards, his pledge to crush corruption, create jobs and raise wages and pensions has struck a chord in the provinces.

"Our strength is the idealistic people in our party," Mr Uspaskich said. "They are not spoiled with power and corruption. They know what Lithuania needs.

While analysts predict an unlikely coalition between the current government and the Labour Party, a final deal will only be struck after another round of voting in a fortnight, when 70 more seats will be up for grabs in constituencies where no one won an outright majority on Sunday.

Mr Andrius Kubilius, leader of the third-placed Conservative Party, said: "Our goal in the second round is not only to win as many seats as possible but to decrease Labour's chances of winning."

Mr Uspaskich's ascendancy has also stoked fears that Russia is regaining its foothold in the former Soviet republic, just six months after President Rolandas Paksas was impeached for allegedly allowing his office to be infiltrated by the Russian mafia and security services.

Mr Uspaskich however has dismissed warnings of a drift to the east. "Lithuanian foreign policy won't change," he said. "The European Union and NATO will remain our natural priorities."