ADVERTISEMENT

Romania renews talk of Petrom contract review

Banking

Romania has renewed threats to review the privatization contract of local oil company Petrom in a pricing row that has cast a shadow over the sale of the company to Austria’s OMV in recent years.

Finance and Economy Ministry Varujan Vosganian said Romania may look into the level of taxes paid by Petrom on the use of the country’s oil reserves. “It’s not normal to give a company all of the oil reserves, to accept that it pays a tax smaller than half of the EU and then to not set any conditions concerning prices,” Vosganian told the Money Channel late on Wednesday. “The one thing that could be done if things continue as they have, would be to see to what extent this (sell-off) contract fits European legislation, because a tax half the size as in other states could be seen as a type of state aid for Petrom.”

The Petrom privatization has been plagued by controversy in Romania, which joined the European Union last year, since the leftist government that sold the company lost power in 2004. Centrist politicians, including President Traian Basescu, have criticized the sale for giving away too much control over Romania’s natural resources. Tax levels were also an issue.

At one point parliament had discussed canceling the sale. Vosganian has said in the past this was not on the cards, but he has criticized the pricing policy of Romania’s energy companies. Soaring global energy costs are a sensitive issue in Romania, where many people cannot afford heating in the winter months. (Reuters)

ADVERTISEMENT

Digitization, sustainability among characteristics of future... Analysis

Digitization, sustainability among characteristics of future...

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.