Bogdan Ivan, Minister of Energy. Photo: Inquam Photos / Octav Ganea
The Ministry of Energy is working, together with all relevant authorities, on the creation of legislation regarding the assets owned by Lukoil, a company under US sanctions, announced the Minister of Energy Bogdan Ivan. He said that Romania must take control of the company.
The announcement comes after Bulgaria already decided last week to take control of Lukoil's assets and is in the process of appointing special administrators.
So far, Romania has not taken any clear decision.
“Romania must take control of the company in order to guarantee the full implementation of international measures, to protect the jobs of the 5,000 employees and to ensure the stability and security of the national energy system,” stated Bogdan Ivan.
What are Romania and Bulgaria doing in the case of Lukoil. Bulgarian authorities quickly made a decision on the Russian oil giant under US sanctions / Romania's Government postpones
Romania will not ask for exemptions
According to the Minister of Energy, the future legislation will ensure “on the one hand, full compliance with the sanctions regime established by the United States, and on the other hand, the continuity of the refining activities of Petrotel Ploiesti, as well as the marketing of petroleum products, without jeopardizing the supply of the national fuel market”.
The minister claims that the international sanctions targeting Lukoil will be applied “firmly” and will not ask for any derogation.
“I say it bluntly: I will not request the extension of the deadline of November 21 set by the American authorities. Moreover, I will support the replication and uniform application of the sanctions initiated by the USA at the level of the entire European Union”, stated the minister.
Petrotel has a refining capacity of approximately 2.4 million tons annually. It is a smaller refinery than the 4.5 million ton Petrobrazi owned by OMV Petrom and the 4.8 million ton Petromidia owned by Rompetrol Rafinare.
US sanctions against Lukoil and Rosneft take effect on November 21. From that date, all business with these companies and their foreign subsidiaries ceases.
Lukoil has been trying to sell the Petrotel Ploiesti Refinery for almost ten years, but the investors were not interested. One of the causes is the fact that the refinery has outdated facilities and requires very large investments, an oil specialist explained to HotNews.
Lukoil also owns a network of 320 gas stations in Romania.
Bulgaria rushes to take control of Lukoil assets
In Bulgaria, Lukoil-owned Neftochim Byrgas is the only refinery and the largest private company in the country. Moreover, it is one of the largest refineries in Eastern Europe, with a capacity of almost 10 million tons of oil.
Bulgaria is moving quickly to take full control of Russian oil giant Lukoil's operations in the country after parliament passed emergency legislation on November 7 allowing the state to sell off the company's subsidiaries, Mediapool reports.
The government is preparing to appoint one or more special administrators to take over the management of Neftochim, which has more than 220 gas stations, an oil terminal and a vast network of fuel depots that generate annual revenues of more than 8 billion euros.
Prime Minister Rosen Jelyazkov confirmed on Monday that one or two administrators would be appointed to oversee Lukoil's affairs in Bulgaria.
“We will ensure compliance with the sanctions so that no money goes to the war in Ukraine,” the prime minister added.
