State-owned refiner PKN Orlen may sell its Orlen Lietuva refinery in Mažeikiai, Lithuania, if the Treasury gives it the green light.

The final decision will be made by Orlen's management, in consultation with the Treasury, in September, after an ultimatum sent by Poland to Lithuanian authorities expires.

In March, Poland asked Lithuanian authorities to rebuild a 19-km section of railway track between the refinery and the country's border with Latvia, as well as to reduce freight rates charged by Lithuanian Railways.

The deadline for meeting the demands was set for September, but it now looks like Lithuanian authorities won't be able to fully cooperate. They say instead that they will only be able to build the tracks in 2012.

“Our position is clear. We do not agree on the date proposed by the Lithuanians,” Deputy Treasury Minister Mikołaj Budzanowski was reported as saying by Dziennik Gazeta Prawna.

“The year 2012 is too late. We need a gesture of good will, even before September. We will inquire in Vilnius what action the Lithuanian authorities intend to take in order to solve this problem,” he added.

If the Treasury's patience does finally run out, Orlen would need up to six months to sell the refinery.