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Croatia drafts legislation eliminating stateʼs stakeholder privileges in INA

Croatiaʼs government has drafted amendments to the countryʼs Privatization Act that would eliminate the stateʼs special ownership rights in Croatian oil and gas company INA, Hungarian news agency MTI reported, citing Croatian daily Jutarnji List.

Concerned parties have until January 22 to comment on the draft legislation, which will be posted on the Croatian governmentʼs website for consultations, the paper said, citing a statement by the Ministry of Environmental Protection and Energy.

Last year, the European Commission launched an infringement procedure against Croatia over the law, which it said violates the EU principle of free movement of capital.

The law gives the state powers to impede management decisions without justification and veto sales of big stakes in the company.

The Croatian state and Hungarian oil and gas company MOL each own just under half of INAʼs shares, but MOL exercises management rights in the company. The sides have been at odds over INAʼs strategy for years, and the Croatian government said earlier it was willing to buy out MOLʼs stake in the company.