Lithuania's government approved draft legislation Wednesday that would allow a new nuclear power plant for the ex-Soviet Baltic republic heavily dependent on Russian energy supplies.

"This is an historic day," Lithuanian Prime Minister Andrius Kubilius told reporters in Vilnius, stressing the move was a key step toward "energy independence". Plans call for the plant to be up and running by 2020.

Lithuania imports more than two-thirds of its electricity and the country depends on Russian giant Gazprom for natural gas.

In March, Lithuania concluded negotiations with Japan's Hitachi regarding the future nuclear plant.

Lithuania's Energy Minister Arvydas Sekmokas said the Hitachi group will get a 20 percent stake in the project.

Lithuania will hold 38 percent, while fellow Baltic states Estonia and Latvia will control 22 and 20 percent respectively, he said.

With a 1,300-megawatt capacity, the new nuclear plant will cost an estimated five billion euros ($6.46 billion).

Despite the tsunami-induced disaster at Japan's Fukushima nuclear plant, Lithuania, a country of three million, has decided to press ahead with nuclear energy, unlike fellow European Union states Germany and Italy.

The 2009 closure of Lithuania's aging Soviet-built Ignalina nuclear power plant has resulted in higher electricity rates in Lithuania and ever-greater energy dependence on Soviet-era master Russia.

Lithuania's parliament is expected to give the green light to the project by June 28.