Kazakhs build up strategic position at Petromidia

Rompetrol Rafinare Constanța (RRC), the company owning Petromidia refinery, is likely to increase its share capital by over 1bn euros, with the Kazakh shareholders in the refinery being determined to go ahead with the plan to convert into shares the bonds that were not bought back from the state, worth around 517m euros.
Moreover, the Kazakhs proposed that the company’s current shareholders should be able to subscribe a sum equalling the bonds to be converted into shares. Rompetrol Group, 100% owned by KazMunaiGaz, controls over 98% in Rompetrol Rafinare through different entities.
This means that should the Kazakhs in their turn subscribe 500m euros in the capital increase, the state will not only be a minority shareholder in Petromidia, but it will also hold a stake below 33%.
Finance Minister Sebastian Vlădescu last Thursday stated the state does not want to become a minority shareholder in Petromidia and it would insist that Rompetrol pays its entire 570m-euro debt, even in instalments. On the other hand, the Kazakhs say they paid 54m euros and for the rest of the sum will give the state refinery shares.