InterAgro will not let go of Tutunul Romanesc

Societatea Nationala “Tutunul Romanesc” (Romanian Tobacco National Company)- SNTR- has regained, after its having been acquired by InterAgro company in June, 8-9 percent of the domestic cigarette market. Its sales monthly grew by approximately 10 percent, InteAgro chairman Ion Nicolae, announced at the end of last week.

“InterAgro continues the operative consolidation process at SNTR, despite desperate efforts by Leaf Tobacco A Michailides (LTAM) to attack the privatisation of SNTR,” he said.

Nicolae also said that InterAgro has so far invested about one million dollars in chemical fertilisers and fuel, a sum InterAgro will recoup in case the Supreme Court of Justice should decide that privatisation was not legal.

“The analysis linked to the privatisation operated by the Competition Office shows that there is no evidence related to illegal actions, and InterAgro is disappointed with the unfair way in which Leaf Tobacco A Michailides understands to use the media,” InterAgro chairman said, referring to articles favourable to the Greek company that were published by the international and Romanian press.

The Supreme Court of Justice will pronounce the final decision on the appeal that was filed by the Greek company on September 29, against the outcome of the privatisation process.

InterAgro chairman also said that SNTR’s turnover reached over 400 billion lei in August, as compared to 320 billion lei in July. The company’s cigarette stocks decreased from 645 tonnes to 316 tonnes, while sales increased to 1,549 tonnes in August, as compared to an average of 1,250 tonnes ahead of privatisation.

Nicolae specified that the Romanian Tobacco National Company in June and July paid 289 billion lei to the state budget and 72.3 billion lei to local budgets, representing excises and VAT.

InterAgro states that payments for August, amounting to over 200 billion lei, will be also made on time, namely by September 25.

InterAgro chairman said that total investments SNTR would pour would amount to 36 million dollars, of which over 20 million dollars will be aimed at technological updating, tobacco crops and the fermentation process.

The Government last week agreed to reschedule on five years the basic debts standing at over 500 billion lei Romanian Tobacco holds to the state budget and to exempt it from the payment of penalties that are worth over 500 billion lei.

The Agriculture minister stated that the decision linked to rescheduling had been made by the ministry as early as last year and that it had nothing to do with the decision that is to be issued by the Supreme Court of Justice.