Fiscal authorities seize Petromidia assets

The National Fiscal Administration Agency (ANAF) has levied distress on land and equipment of Rompetrol Rafinare (Rompetrol Refining -RRC), which holds Petromidia refinery, as well as on stakes in company subsidiaries.
This is the latest move by the Romanian authorities in what is shaping up to be one of the biggest scandals of the year: the recovery of 570 million euros in debts owed by Petromidia to the Finance Ministry.
The ANAF decision comes after the proposal made at the beginning of this month by Rompetrol Rafinare’s Board of Directors, according to which the company could mortgage all its assets in favour of majority shareholder Rompetrol, now controlled by Kazakh state-held company KazMunaiGaz, in order to guarantee 900 million dollars in loans taken out from the latter.
The proposal is to be analysed tomorrow and comes in the context where the state will most likely become a minority shareholder of Rompetrol Rafinare this year by converting into shares the bonds that have not been bought back by the company by September 30th.