KazMunayGas takes legal action against Romania after shares in refinery frozen

Kazakh state oil company KazMunayGas has started procedures for legal action against Romania, following the decision taken by DIICOT prosecutors to lay seizure on Petromidia refinery, in a criminal file involving the way the refinery was privatized, thus putting to a hold the company’s plans to sell KMG International shares, the current name for Rompetrol Group, to a Chinese company, digi24.ro informs quoting ‘Financial Times’.
The source reads that the KazMunayGas lawyers have sent a letter to the Romanian government to notify the dispute regarding investments, the first step for legal action that could finalize with an international arbitrage procedure.

The KazMunayGas International first Vice-president Azamat Zhangulov was heard by DIICOT on May 10, being also informed about the decision regarding the seizure on Petromidia refinery and on Rompetrol gas stations. The prosecutors have opened a new criminal file to recover the EUR 660 million damages. These are debts that have not been paid by businessman Dinu Patriciu and by KazMunaiGaz, the company that later bought Rompetrol.

Romanian Government is not living up to its promises, Azamat Zhangulov, Senior Vice President at KazMunayGas International, said in an interview two weeks ago with EU Today, talking about Rompetrol and the investment climate in Romania. ‘Romania Journal’ reported at the time that the KMG International official pointed out that the company he represents is ready to distribute around USD 300 million to the Romanian state as part of the agreement and is also ready to establish in partnership an economic and social development project fund for Romania that could total USD 1 billion.

source: energyworldmag.com