Zarubezhneft Invited to Bosnia
The Republic of Srpska (Bosnia and Herzegovina) offered to Russia’s Zarubezhneft to buy a refinery, an oil enterprise and a net of gasoline filling stations in the country. Prime Minister of Republic of Srpska Milorad Dodik and Economic, Energy and Transport Minister Milan Jelić arrived in Moscow for negotiations.
Invited by Zarubezhneft, Prime Minister of Republic of Srpska Milorad Dodik and Economic, Energy and Transport Minister Milan Jelić arrived in Moscow yesterday to agree with Zarubezhneft about the sale of the state-run stakes in Rafinerija Nafte Bosanski Brod refinery, Rafinerija Ulja Modrica oil enterprise and Petrol net of filling stations.
The assets offered for sale don’t yield profit now. Rafinerija Nafte Bosanski Brod, for instance, was put in operation far back in 1878, but reached the peak of 5 million tons only in a century. Having suffered from military actions in Bosnia, it annually processes no more than 1.5 million tons a year, according to Reuters, but has debts worth ˆ190 million. Moreover, British Vitol claims compensation of $115 million for the contract breach. The Republic of Srpska estimates the worth of refinery at ˆ250 million. The government’s stake equals 65 percent.
On aggregate, three enterprises cost around ˆ979 million, Dodik said. The buyer is expected to pay off the debts and invest around ˆ153 million in upgrading Bosanski Brod and ˆ35 million in Rafinerija Ulja Modrica, connect them by a railroad and funnel ˆ32 million to renew Petrol net of filling stations.
www.kommersant.com
All the Article in Russian as of Aug. 17, 2006
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