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Hungary and Croatia to Solve MOL/INA Issue

Published: October 9, 2013; 11:07 · (Vindobona)

Both Hungarian Minister of Foreign Affairs Janos Martonyi and his Croatian counterpart Vesna Pusic intend to solve the issue between Hungarian MOL and Croatian INA.

Hungary and Croatia to Solve MOL/INA Issue / Picture: © MOL

According to the Croatian Ministry of Foreign Affairs, MOL will decided about selling its shares in INA in case no solution should be found during the dialogue between the two officials.

On the sidelines of a meeting in Monenegro on Friday, Martonyi notified Pucic of the Hungarian government’s view on this issue. “The Hungarian party does not wish for there to be any source of tension in Hungarian-Croatian relations, and if MOL's stake in INA prevents this, then the best solution would be to separate the two business partners in a civilized manner,” he said and pointed out that the problem lied only withing MOL. Furthermore, Martonyi emphasized that the Hungarian government was not able to inhibit the application of a European arrest warrant.

A Hungarian court rejected the extradiction of Zsolt Hernadi, who is alleged of having bribed former Croatian Prime Minister Ivo Sanander.

Hungary´s government calls MOL´s management to re-consider the engagement in Croatia and to prepare the sale to Croatia´s government. Due to the difficult fiscal frame conditions, Croatia would not be able to acquire MOL´s share. As a result, Croatia would be confronted with a new major shareholder.

Hungarian MOL holds a 49.1 percent stake in Croatian INA. With a stake of 26 percent, Hungary´s government is MOL´s core shareholder. The Croat government controls 45 percent of INA´s shares. Instead, MOL plans to invest $ 38m in the exploration and production of hydrocarbon resources in Western Romania. The exploration works will be operated by Panfora Oil & Gas, an upstream subsidiary of MOL Group, which is active in Romania.

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