Lithuanian Prime Minister Gintautas Paluckas is being investigated over a potential conflict of interest after a company he co-owns was accused of receiving a subsidized government loan. 

Last week, journalists reported that Garnis — a battery company partially owned by the prime minister — received a €200,000 subsidized loan from the state development bank ILTE while Paluckas was in office.

The prime minister denies any conflict of interest, saying he is not involved in company operations and did not influence ILTE’s decision on the loan. He requested that the Chief Official Ethics Commission, which answers to the parliament, assesses the situation. 

“The proposed investigation will focus on the prime minister’s actions, his behavior during the government meeting” where ILTE was discussed, Gediminas Sakalauskas, who chairs the commission, said Wednesday. “We will try to answer the question of whether or not there was any violation of the law.” 

Though some opposition lawmakers called on Paluckas to step down following the allegations, the prime minister said he will not, adding that the journalists’ “claims are pulled out of thin air.”

The probe could take up to three months, according to Sakalauskas.