Press release

Rompetrol Gas notes with astonishment the decision of the Ministry of Public Finance to reject the application for the re-authorization of its production tax warehouse on the Petromidia platform (the LPG bottling station of Navodari), a situation which has led to the revocation of the current tax warehouse authorization. The Rompetrol Gas Company is a member of the KMG International Group, and the respective facility carried out mainly LPG bottling activities for domestic consumers (gas cylinders).

 

The decision of the Authorizing Commission of the Ministry of Public Finances was adopted in two meetings of April 21 and May 19, 2016, and was communicated to us on May 25.

 

According to legal provisions, the company suspended as of yesterday its production and selling activities at the Navodari working station, as the local customs authority sealed the production facilities. At the same time, sales of the inventory are blocked and can only be resumed with the agreement of the local customs authority.

 

We remind that Rompetrol Gas started the legal procedures for renewing the tax warehouse authorization of this facility as early as 2010. This procedure was hindered by the situation of certain assets used by Rompetrol Gas in the production process, which are legally owned by Rompetrol Rafinare and were subject of the ANAF decision of 10 September 2010 establishing seizure on all the movable, immovable properties and shares owned by Rompetrol Rafinare in other entities.

 

Despite a partial lifting in April 2016 of the seizure established by ANAF over these assets in 2010 (following submission by Rompetrol Rafinare SA of guarantees in compliance with the law), these goods were recently subject to a new seizure established by DIICOT on the 9th of May on the movable, immovable properties and shares owned by Rompetrol Rafinare in other entities, a situation which ruled out a favorable outcome of Rompetrol Gas' application.

 

In this situation, the company will fulfill its commitments to customers in the Dobrogea area by ensuring continuous supply from its bottling facility in Bacau. In 2008 and 2010, Rompetrol Gas opened bottling stations in Arad and Bacau, with a total investment of USD 21 million, leading to the creation of 150 new jobs.

 

The Company will take all legal measures to protect its employees against the effects of this decision. Today, the 30 employees of the Navodari working station were to load more than 1.000 cylinders with the gas produced at the Petromidia refinery, which are products subject to VAT and other taxes.

 

 

 

Department of Communication and Public Relations

 

KMG International