BUSINESS

Azamat Zhangulov, senior vice president of KMG International on the payment of 200 million dollars for a 26.6% stake in Rompetrol refinery: I don’t think it can be made in 2015

The negotiations between KazMunaiGaz and the Romanian state over Rompetrol Refining will end in July, but the payment of 200 million dollars for a 26.6% stake in the refinery cannot be made in 2015, because 6 to 7 months are required to take all the necessary steps after the completion of the negotiations, Azamat Zhangulov, senior vice president of KMG International, said on Tuesday.

“We finalized the Memorandum with the Romanian state in February 2013. The first intention on our part was to start operations in mid- 2013. The preliminary calculations on the benefits for the Romanian economy have been carried out. As much as 200 million dollars should have been paid and we could have started large investment projects on energy costs and other indicators that would have led to the creation of 500 jobs. (…) Our commitment is valid and we are trying to follow the investment programme, but some problems prevent us from doing that. We hope to fix them in the next three months. In July, the actual operation can start. (…) As to the fund of 200 million dollars, we were able to pay it two years ago. (…) I do not think this payment can be made in 2015. There are certain procedures and the rules in places must be observed,” explained Zhangulov.

He pointed out that the investment fund which will be established depends on making this payment, but voiced his belief that the current Ministry of Energy, which now includes also the business milieu, will hold more effective negotiations.

At end-2013, the Constitutional Court of Romania (CCR) ruled that the Law approving the Memorandum of Understanding signed between the Romanian state and The Rompetrol Group NV on February 15, 2013, is unconstitutional, after admitting President Traian Basescu’s notification.

The Memorandum states that Rompetrol will redeem 26.6% of shares held by the Romanian state in Rompetrol Refining with 200 million dollars, and will set up, together with the Romanian state, a fund of 1 billion euros for energy investments, Agerpres informs.

 

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