The nationalization of the Petrotel refinery, owned by Lukoil, by the Romanian authorities is a “last resort“ for the country, Romanian Prime Minister Ilie Bologian said in an interview with Euronews.
“This would be the last resort“, he said. “The situation is dynamic. There is a working group on this issue, but let's see what decisions will be taken at the global level next week, especially in the United States.“
According to the Prime Minister, there are currently two options regarding the Lukoil refinery: either the United States agrees to a postponement of the sanctions to avoid disruptions in the energy sector, or the assets of “Lukoil“ will be sold. “During this period, negotiations are being held both between the EU and the US, and between Romania and the US at expert level, to understand how they will continue in the next period“, he said. “There is a possibility of a delay so that the sanctions can be implemented without major disruptions, or the possibility of concluding trade deals that would allow the sanctions to be imposed immediately.“
“We have applied these sanctions in Romania in previous years, but in accordance with the decisions of the European Commission, and now we have to apply them based on the decisions of the US“, the prime minister noted. “And this requires small legislative changes, which we will probably make next week.“
The head of government acknowledged that the sanctions against Lukoil could negatively affect Romanian companies, such as Romgaz. "If a commercial solution is not found, Lukoil's operations in Romania will be very difficult because any company that works with it will be subject to these sanctions unless it clearly separates the financial flows," he said.
According to the prime minister, the closure of Lukoil will not lead to an increase in fuel prices in Romania. "This should not happen," Bologian said. "Lukoil's share of the Romanian fuel market is important, but not so large as to create serious problems." On the other hand, he believes that the sanctions against Lukoil could affect markets in the region, where the company has a more significant presence - in Bulgaria and Moldova.
Energy Minister Bogdan Ivan announced on Thursday that the ministry had prepared a regulation on Lukoil's assets in Romania. "We are already prepared a draft regulation to regulate this new situation for the Romanian state and all countries affected by US sanctions, in direct communication with the Office of Foreign Assets Control (OFAC) of the US Treasury Department and the company,“ he said.
Ivan added that the document was prepared to ensure “there is no disruption in the Romanian energy sector, to avoid harm to companies that have commercial relations with Lukoil, and to avoid fuel shortages on the market“. This regulatory act must receive feedback from the Ministry of Finance, the Ministry of Foreign Affairs and the Ministry of Economy, after which it will be adopted by the government.