Page 19 - EurOil Week 03 2023

EurOil NEWS IN BRIEF EurOil

banned the exports of crude oil and fuels derived from activities carried out in the request by Energoinvest, Bosnia’s major
produced from Russian oil. oil, natural gas, coal and refinery sectors importer of gas from Russian Gazprom.
In May 2022, Bulgaria was allowed by represents the transposition into national The wholesale price of natural gas for
the EU to continue importing Russian oil legislation of EU Regulation 2022/1854, distribution companies is being set at
by the end of 2024 to have time to adjust which covers all member states and has BAM990 (€506.2) per 1,000 Sm3, down
the equipment of Lukoil Neftochim to work as its main objective the protection of from BAM1,095.
with non-Russian oil. Initially, the caretaker vulnerable categories of the population In 2022, the Federation – one of two
government of Prime Minister Gulub against the effects of the increase in energy autonomous entities in Bosnia along with
Donev claimed that this allows the country prices and the financing of investments in the Serb-dominated Republika Srpska – was
to export Lukoil Neftochim’s production to strategic energy projects. increasing natural gas prices quarterly. In
the EU. However, it received a clear answer Furthermore, it says that the solidarity November, the price was up by 100% y/y.
that these products can only be used on the contribution is also owed by the affiliated
internal market or exported to Ukraine. parties of the companies subject to the
Lawmakers also changed the law on solidarity contribution “regardless of Private gas distribution firm
concessions in order to end the concession the object of activity”, according to the
on the port of Rossenets that was granted to government decree. Rotalin asks for $63mn from
Lukoil until 2046. The amendments ban the In related news, the Foreign Investment
granting of concessions on objects that are Council (FIC) in Romania argued against Moldova
related to critical infrastructure related to the solidarity contribution claiming that
the transit of oil and oil derivatives, such as “the government endangered the stability, Private natural gas distribution firm
the Rossenets port. predictability and transparency of the Rotalin Gaz Trading has asked for $63mn
The parliament also decided to impose legislative framework, which represent from Moldova in an arbitration request
a tax on the excessive profit of Lukoil a vital framework for investors to carry file to the World Bank’s specialised ICSID
Neftochim Burgas. out their economic activities in optimal court, Mold-Street.com reported.
conditions.” The company claims that it has invested
The FIC argued that EU Regulation “tens of millions of US dollars” in the 18
OMV Petrom argues it is not 2022/1854 allows wide flexibility, years of activity in Moldova, but the market
regulator has not allowed it to recover its
establishing only a minimum quota of
subject to solidarity contribution 33% – compared to the 60% charged by investment.
Romania.
Rotalin, controlled by US-British
OMV Petrom, the largest oil and gas Two-thirds of the EU states that chose investor Jamal Sari Nuseibeh through
producer in Central and Eastern Europe, to introduce the solidarity contribution the Liechtenstein-registered Rotalin Gas
said in its Q4 trading update that it “is applied the minimum rate of 33% and more Trading, claims that it is the largest private
expected not to be subject to the solidarity than half of the countries chose to apply investor registered under the National
contribution for the fiscal year 2022 having only for one year (not for two, as is the case Gasification Programme launched by
less than 75% of its turnover in the defined with Romania), the FIC also argued in its Moldova in 2002. It estimates its market
areas: extraction of crude, extraction of statement on the solidarity contribution share at 3%, enough to make it the
natural gas, extraction of coal and refining implemented in Romania. main rival of the Gazprom-controlled
business.” Moldovagaz.
The company stressed that it already According to the law, natural gas
contributed a large volume of transfers to Bosnian Federation cuts price of distribution networks are financed by the
Romania’s state budget in royalties, excise distribution system operator, but they are
taxes and profit taxes. natural gas by 9.6% taken into account when setting the fees
On a rather political note, local media charged to end-consumers for the natural
remarked, however, that OMV group has Bosnia & Herzegovina’s Muslim-Croat gas distribution service.
accepted paying the solidarity contribution Federation decided on January 12 to cut the However, Rotalin Gaz Trading claims
in Austria. price of natural gas, which it is importing that, through the decisions of the energy
Without specifically stating whether from Russia, by 9.6% as of January 1, it said market regulator ANRE, the state deprived
OMV Petrom is or is not subject to the in a statement. it of the money invested by refusing to
solidarity contribution, the Romanian The decision was based on falling calculate appropriate fees. ™
Ministry of Finance emphasised in a oil prices on global markets, cuts in gas
statement, quoted by Ziarul Financiar consumption in Europe and the warm
daily, that the solidarity contribution set for winter.
companies with over 75% of their turnover The price reduction came following a

Week 03 20•January•2023 www. NEWSBASE .com P19