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October 2, 2022

KazMunaiGaz debt deemed state budget revenue

Rompetrol’s historical debts to the Romanian state, assumed by KazMunaiGaz, and estimated at USD 600 M, are considered revenues to the state budget in 2010, under the International Monetary Fund agreement, government sources said, quoted by Hotnews.ro. KazMunaiGaz debt to the state was reportedly discussed at the latest meeting between IMF officials and government representatives in January. In June last year, Dinu Patriciu sold his remaining Rompetrol Group shares to KazMunaiGaz. In 2007, the Kazakh company had already acquired 75 per cent of the shares from the businessman, for USD 1.6 bln. Details of the contract were not made public. Under a 2003 ordinance, the Romanian state has two possibilities: either to buy back Petromidia debt converted into bonds and become again the main shareholder in Petromidia, or to claim the debt upon maturity. Government sources told Hotnews.ro that the formula for calculation of bonds redemption would disadvantage the state, which prefers, in these conditions, to cash the debt, which is actually included in the 2010 budget, under the IMF deal.

President Traian Basescu is set to visit Kazakhstan today and tomorrow. Sources said he is scheduled to hold talks with KazmunaiGaz officials, in order to tackle Rompetrol’s action against the Romanian state with international courts. In December 2005, the Rompetrol Group, a foreign company registered in Netherlands, sued Romania within the World Bank’s Court of Arbitration, asking for EUR 100 M in damages for ‘judicial and administrative harassment.’

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