Due to excessive temperatures, energy consumption in Bucharest registered historic records of 959 MW, 50% more than a usual day, Finance Minister Varujan Vosganian said in a press conference on Tuesday.
Moreover, Vosganian announced that consumption on Tuesday might be higher than the record.
Consumption grew because of the extensive use of AC systems and the Minister announced that in Bucharest, energy will be interrupted for 10 to 15 minutes to discharge the transformers.
On Monday, 13 of such controlled blackouts were signaled in the capital city.
The electricity production is normal, and the reactor in the nuclear plant of Cernavoda will not be shut down.
Vosganian explained that water debit necessary for cooling down the reactors are bigger than in August 2003, when Cernavoda had to be shut down for a couple of days, due to severe drought.
Plus, electricity costs will not raise as the supplementary costs of production are supported by the national energy system.
The main measure taken to assure enough energy for the population is to reduce by 20% the energy quantity delivered to the big consumers through contracts.
HotNews.ro, Jul 24, 2007
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Thursday, August 16, 2007
Thursday, July 05, 2007
Ministry of Economy reveals ''sources'' for boosting pensions
Romanian Economy minister Varujan Vosganian defended his government's plans to boost pensions on Monday after serious criticism in this regard from the International Monetary Fund and the Fitch agency. He said in a press conference today that the government could find enough funds to boost pensions without further taxation and with no risk of speeding up inflation.
The pension project approved last week involves a financial effort of over 2 billion euro for the Romanian state.
Vosganian says that the increase does not translate into a bigger inflation or over-taxing and that revenues resulting from copyrights, intellectual property and dividends will remain untaxed.
Pensions will increase with 40% up to 2008, meaning that the starting point of pensions will rise from 31% in 2007 to 37.5% in 2008.
However, the minister argues that mainly the money for pensions will come from the nominal increase of the GNP - 1.2 billon euro in 2008, from the workers, whose number will increase up to 2% in 2008, of the revenues from salaries which will bring about 180-200 million euro.
HotNews.ro, Jul 3, 2007
The pension project approved last week involves a financial effort of over 2 billion euro for the Romanian state.
Vosganian says that the increase does not translate into a bigger inflation or over-taxing and that revenues resulting from copyrights, intellectual property and dividends will remain untaxed.
Pensions will increase with 40% up to 2008, meaning that the starting point of pensions will rise from 31% in 2007 to 37.5% in 2008.
However, the minister argues that mainly the money for pensions will come from the nominal increase of the GNP - 1.2 billon euro in 2008, from the workers, whose number will increase up to 2% in 2008, of the revenues from salaries which will bring about 180-200 million euro.
HotNews.ro, Jul 3, 2007
Sunday, June 24, 2007
Drought destroys 60% of all agriculture terrain
Agriculture Minister Decebal Traian Remes declared on Friday that over 1.2 million hectares of agriculture terrain were severely affected by the draught, NewsIn informs. Only very few of the farmers have insurance for their terrain and will receive compensations.
Still, Remes ensures the populace that there is no reason for the food prices to rise.
"I am not a parliamentarian, I only have the obligation to respect the law. The compensations will go only to those who signed insurance contracts. My intention is to change the law so that all people will have to ensure their cultures", said Remes.
According to the official data, the productivity will drop to 1.6 tons of grain per hectare, much less than the previous years (2.9 tons in 2005).
The new maximum compensation level will be 70% of the expenses until the calamity status was officially declared.
HotNews.ro, Jun 22, 2007
Still, Remes ensures the populace that there is no reason for the food prices to rise.
"I am not a parliamentarian, I only have the obligation to respect the law. The compensations will go only to those who signed insurance contracts. My intention is to change the law so that all people will have to ensure their cultures", said Remes.
According to the official data, the productivity will drop to 1.6 tons of grain per hectare, much less than the previous years (2.9 tons in 2005).
The new maximum compensation level will be 70% of the expenses until the calamity status was officially declared.
HotNews.ro, Jun 22, 2007
Thursday, June 14, 2007
Economy minister Vosganian: ''Car tax to be included in Fiscal Code in January 2008''
A reviewed calculus for Romania’s controversial first registration car tax will be included in the fiscal code on January 1, 2008 or six months since its publication in the Official Gazette, Romanian Economy minister Varujan Vosganian said on Tuesday, quoted by the NewsIn news agency.
Vosganian’s statement comes as the Romanian Government has yet to receive a favorable answer from the European Commission over its new formula to compute the tax.
The first registration car tax was introduced this year, sparking complaints from the European Commission as it was seen as a means to prevent free competition on old and new car sales.
Should the Commission provide a favorable answer to the new formula for the tax calculus, the tax is due to be approved in Parliament before it comes into force.
The principles for the new formula were submitted by the Economy Ministry to the European Commission in May this year.
HotNews.ro, Jun 12, 2007
Vosganian’s statement comes as the Romanian Government has yet to receive a favorable answer from the European Commission over its new formula to compute the tax.
The first registration car tax was introduced this year, sparking complaints from the European Commission as it was seen as a means to prevent free competition on old and new car sales.
Should the Commission provide a favorable answer to the new formula for the tax calculus, the tax is due to be approved in Parliament before it comes into force.
The principles for the new formula were submitted by the Economy Ministry to the European Commission in May this year.
HotNews.ro, Jun 12, 2007
Saudi company selected for Electroputere privatization
The Authority for State Assets Recovery-AVAS in Bucharest has selected Saudi-based Al Arrab Contracting Company Ltd. For the takeover of 62.82% of Romanian company Electroputere Craiova,, an AVAS press release says. The next phase in the Electroputere privatization process, which is based on final offer negotiation, is the negotiation of contractual clauses.
According to AVAS, Al Arrab Contracting Company is experienced in railway construction, industrial machines production, construction works operations.
AVAS put on salw 62.82% of Electroputere on February 20 this year. Five companies showed interest in the privatization of the Craiova-based company:: A5 Invest Caransebes and Grup Feroviar Roman from Romania, Vienna International Holding from Austria, Al Arrab Contracting Company from Saudi Arabia and Peeker Atomic Energy System - US.
Once the documentation was analyzed three offers remained in competition: A5 Invest Caransebes, Grup Feroviar Roman and Al Arrab Contracting Company.
Electroputere Craiova, an engines and generators producer, was put on sale no less than six times so far. Established in 1949, it was split into seven separate companies in 1990 but they reunited to form the current holding SC Electroputere SA in 1994.
HotNews.ro, Jun 12, 2007
According to AVAS, Al Arrab Contracting Company is experienced in railway construction, industrial machines production, construction works operations.
AVAS put on salw 62.82% of Electroputere on February 20 this year. Five companies showed interest in the privatization of the Craiova-based company:: A5 Invest Caransebes and Grup Feroviar Roman from Romania, Vienna International Holding from Austria, Al Arrab Contracting Company from Saudi Arabia and Peeker Atomic Energy System - US.
Once the documentation was analyzed three offers remained in competition: A5 Invest Caransebes, Grup Feroviar Roman and Al Arrab Contracting Company.
Electroputere Craiova, an engines and generators producer, was put on sale no less than six times so far. Established in 1949, it was split into seven separate companies in 1990 but they reunited to form the current holding SC Electroputere SA in 1994.
HotNews.ro, Jun 12, 2007
Enel takes over Electrica Muntenia Sud officially on Monday
The privatization contract by which Romanian utility company Electrica Muntenia Sud is bought by Italian group Enel will be signed on Monday.
Enel president Fulvio Conti had first come for the contract signing ceremony in Bucharest last week, but the Romanian Authority for State Assets Recovery-AVAS postponed the ceremony on Thursday as the governmental decision on the issue had not been published in the Official Gazette.
Enel will buy 50% of Electrica shares directly and is due to reach a portfolio of 67.5% as the company is expected to go through a capital increase.
Enel won the privatization bid for Electrica Muntenia Sud - the largest branch of Romanian utility group Electrica - in the summer of 2006. Enel offered 820 million euro for the 67.5% state.
The state-owned Electrica used to have eight branches, but four of them were already sold in 2004-2005. Enel bought Electrica Banat and Electrica Dobrogea, while Czech company CEZ bought Electrica Oltenia and E.ON acquired Electrica Moldova.
Several weeks ago, the Economy Ministry announced it planned to sell all energy distributors and energy complexes in Romania by the end of 2007.
HotNews.ro, Jun 11, 2007
Enel president Fulvio Conti had first come for the contract signing ceremony in Bucharest last week, but the Romanian Authority for State Assets Recovery-AVAS postponed the ceremony on Thursday as the governmental decision on the issue had not been published in the Official Gazette.
Enel will buy 50% of Electrica shares directly and is due to reach a portfolio of 67.5% as the company is expected to go through a capital increase.
Enel won the privatization bid for Electrica Muntenia Sud - the largest branch of Romanian utility group Electrica - in the summer of 2006. Enel offered 820 million euro for the 67.5% state.
The state-owned Electrica used to have eight branches, but four of them were already sold in 2004-2005. Enel bought Electrica Banat and Electrica Dobrogea, while Czech company CEZ bought Electrica Oltenia and E.ON acquired Electrica Moldova.
Several weeks ago, the Economy Ministry announced it planned to sell all energy distributors and energy complexes in Romania by the end of 2007.
HotNews.ro, Jun 11, 2007
Friday, June 08, 2007
Investments in Romanian economy reach 7.73 bln RON in Q1 2007
The total value of investments in Romania’s national economy in the first quarter of 2007 reached 7.73 billion RON, up 15.9% compared to the similar period last year, the National Statistics Institute-INS announced on Monday.
Of all investments, 3.8 billion went into new construction works, 3.36 billion RON were invested in tools and machinery including transportation, while 569 million was spent in other fields.
Construction works, trade, vehicle and goods restoration, electricity and thermal energy, natural gas and water supplies, communications and the food industry were the main activities that received investments throughout the period, according to the INS.
The amount does not count investments in real estate properties, assets that have already been registered at other units and ongoing acquisitions.
HotNews.ro, Jun 4, 2007
Of all investments, 3.8 billion went into new construction works, 3.36 billion RON were invested in tools and machinery including transportation, while 569 million was spent in other fields.
Construction works, trade, vehicle and goods restoration, electricity and thermal energy, natural gas and water supplies, communications and the food industry were the main activities that received investments throughout the period, according to the INS.
The amount does not count investments in real estate properties, assets that have already been registered at other units and ongoing acquisitions.
HotNews.ro, Jun 4, 2007
Average net salary in Romania up by 1.4% in April
The average net salary in Romania stood at 1,027 RON in April this year, up 1.4% compared to March and 22.4% higher than April 2006, the National Statistics Institute announced on Monday. The highest salary boosts were recorded in the financial sector while the lowest were reported in the wood processing industry.
The average gross salary for the period stood at 1,387 RON, up 1.7% compared to March.
The higest average net salary values were reported in the financial sector (3002 RON), air transport (2254 RON), tobacco processing (2070 RON) and crude processing.
The lowest salaries are reported in the wood processing industry except furniture manufacturing (573 RON), textile industry (581 RON), leather processing industry (582 RON).
HotNews.ro, Jun 4, 2007
The average gross salary for the period stood at 1,387 RON, up 1.7% compared to March.
The higest average net salary values were reported in the financial sector (3002 RON), air transport (2254 RON), tobacco processing (2070 RON) and crude processing.
The lowest salaries are reported in the wood processing industry except furniture manufacturing (573 RON), textile industry (581 RON), leather processing industry (582 RON).
HotNews.ro, Jun 4, 2007
Thursday, June 07, 2007
Economy minister asks Arpechim to pay. Oltchim interested in acquisition
Economy Minister Varujan Vosganian asked Petrom on Wednesday to allocate the necessary funds for the Arpechim equipment modernization, adding that the required funds should not be a problem for the Austrian group.
Meanwhile, the Oltchim CEO Constantin Roibu declared that his company is interested in taking over Arpechim.
"The expenses demanded for fulfilling the environmental protection standards are quite modest, compared to the Petrom profits in 2006. In a few months, all five tanks can be modernized. I don't believe that Arpechim will be shut", said Varujan Vosganian.
The minister also shown that Oltchim was very affected by the Arpechim closing and that measures are needed so that the factory continues to function.
"We had a meeting with several Petrom representatives and they said the investments will be made. The state's representatives in the Petrom board have their mandated to approve the investments", said Vosganian. "It was not a matter of funds, it was a matter of schedules".
In case the Arpechim platform would be shut, one of the first victims would be Oltchim, a company which depends entirely on the raw matters produced by Arpechim.
Oltchim would lose some 30 million euros a month and would have to decrease its production 60 - 65%.
Arpechim’s integrated environment authorization was suspended on Tuesday because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands.
HotNews.ro, May 30, 2007
Meanwhile, the Oltchim CEO Constantin Roibu declared that his company is interested in taking over Arpechim.
"The expenses demanded for fulfilling the environmental protection standards are quite modest, compared to the Petrom profits in 2006. In a few months, all five tanks can be modernized. I don't believe that Arpechim will be shut", said Varujan Vosganian.
The minister also shown that Oltchim was very affected by the Arpechim closing and that measures are needed so that the factory continues to function.
"We had a meeting with several Petrom representatives and they said the investments will be made. The state's representatives in the Petrom board have their mandated to approve the investments", said Vosganian. "It was not a matter of funds, it was a matter of schedules".
In case the Arpechim platform would be shut, one of the first victims would be Oltchim, a company which depends entirely on the raw matters produced by Arpechim.
Oltchim would lose some 30 million euros a month and would have to decrease its production 60 - 65%.
Arpechim’s integrated environment authorization was suspended on Tuesday because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands.
HotNews.ro, May 30, 2007
Arpechim closure may seriously affect activity at Oltchim
The closure of the Arpechim Refinery in south Romania may have a domino effect among other refineries in the petrochemical and chemical industry, including Oltchim, a major plant in south Romania.
Oltchim trade union leader Mihai Diculoiu told HotNews.ro that the closure of Arpechim would be a “disaster” for the Ramnicu Valcea-based Oltchim, considering that the main raw material used there, ethylene, is provided by Arpechim.
UPDATE 1: A top environment official, Emilia Dumitrescu of the Environment Commissioner’s Body for the county of Arges, says the refinery will not close immediately. She told HotNews.ro that there was no precise deadline for the suspension of activities at the Arpechim Pitesti refinery. Activity at the plant was running in normal conditions on Tuesday.
UPDATE2: Petrom shares fell 4.72% on closing bell on Tuesday following news that the company starts closing down the Arpechim Refinery temporarily. Company shares were suspended from trading in the first hours in the morning.
Arpechim’s integrated environment authorization was suspended on Monday because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands. Arpechim is owned by Romanian oil company Petrom, a member of the OMVgroup.
Diculoiu said that a halt in ethylene deliveries would stop the installations used in PVC production. PVC covers some 70% of Oltchim’s turnover.
A member of the Oltchim board who refused to reveal his name also told HotNews.ro that the withdrawal of Arpechim’s environment authorization may have a terrible effect in terms of ethylene deliveries. Ethylene, he said, cannot be taken from anywhere else because it can’t be transported through pipelines.
HotNews.ro, May 29, 2007
Oltchim trade union leader Mihai Diculoiu told HotNews.ro that the closure of Arpechim would be a “disaster” for the Ramnicu Valcea-based Oltchim, considering that the main raw material used there, ethylene, is provided by Arpechim.
UPDATE 1: A top environment official, Emilia Dumitrescu of the Environment Commissioner’s Body for the county of Arges, says the refinery will not close immediately. She told HotNews.ro that there was no precise deadline for the suspension of activities at the Arpechim Pitesti refinery. Activity at the plant was running in normal conditions on Tuesday.
UPDATE2: Petrom shares fell 4.72% on closing bell on Tuesday following news that the company starts closing down the Arpechim Refinery temporarily. Company shares were suspended from trading in the first hours in the morning.
Arpechim’s integrated environment authorization was suspended on Monday because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands. Arpechim is owned by Romanian oil company Petrom, a member of the OMVgroup.
Diculoiu said that a halt in ethylene deliveries would stop the installations used in PVC production. PVC covers some 70% of Oltchim’s turnover.
A member of the Oltchim board who refused to reveal his name also told HotNews.ro that the withdrawal of Arpechim’s environment authorization may have a terrible effect in terms of ethylene deliveries. Ethylene, he said, cannot be taken from anywhere else because it can’t be transported through pipelines.
HotNews.ro, May 29, 2007
Petrom: Suspension of Arpechim authorization is disproportionate and unjustified
A decision to suspend the environment authority for the Arpechim Refinery, which covers about half of Petrol fuel supplies, is disproportionate and unjustified, Petrom communications director Dan Pazara warns in a press release issued on Tuesday.
The position comes one day after Arpechim’s integrated environment authorization was suspended because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands.
Pazara says in the press release that the Arpechim refinery has a program negotiated with the National Environment Protection Agency-Pitesti that includes specific measures due to be fulfilled by 2012, a deadline for a period of transition negotiated with the European Union.
He warned that the closure of the refinery was a drastic measure having a negative impact on the Romanian economy and especially the Romanian petrochemical industry, which depends on Arpechim deliveries.
According to Pazaru, one of the measures still to be applied - the modernization of gasoline tanks - was considered to be applied at a much higher level than that demanded by the environment authorities and that negotiations were under way for an optimal solution since it was found that the deadline set in this regard, December 31, 2006, was impossible to meet.
HotNews.ro, May 29, 2007
The position comes one day after Arpechim’s integrated environment authorization was suspended because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands.
Pazara says in the press release that the Arpechim refinery has a program negotiated with the National Environment Protection Agency-Pitesti that includes specific measures due to be fulfilled by 2012, a deadline for a period of transition negotiated with the European Union.
He warned that the closure of the refinery was a drastic measure having a negative impact on the Romanian economy and especially the Romanian petrochemical industry, which depends on Arpechim deliveries.
According to Pazaru, one of the measures still to be applied - the modernization of gasoline tanks - was considered to be applied at a much higher level than that demanded by the environment authorities and that negotiations were under way for an optimal solution since it was found that the deadline set in this regard, December 31, 2006, was impossible to meet.
HotNews.ro, May 29, 2007
Arpechim refinery to suspend activity starting Tuesday
The Arpechim Refinery in Pitesti, south Romania has to suspend its activities starting Tuesday as the environment authorities set a several weeks-long term for the company to bring all its installations in line with the safety standards of the EU, Environment minister Attila Korodi told NewsIn news agency on Monday.
Arpechim belongs to Petrom, Romania’s biggest oil company that has OMV as a majority shareholder. Arpechim produces half of the fuel sold by Petrom.
Following the announcement some 2,000 workers at Arpechim are expected to be unable to work starting today.
If the plant doesn’t solve its safety and environmental problem, the Regional Agency for Environment Protection-Pitesti will have to annul its environmental authorization, meaning worse times for Arpechim.
According to minister Korodi, the agency has only suspended the environmental authorization for now because the plant did not comply with EU directives dealing with the integrated control of pollution and with strategic installations that process hazardous substances.
A Petrom press release sent to NewsIn on Monday night says that the closure of the refinery was a drastic measure that has a negative impact on the economy of Romania and especially on the petrochemical industry in the country. The document says Petrom will use all its legal means to challenge the measure.
HotNews.ro, May 29, 2007
Arpechim belongs to Petrom, Romania’s biggest oil company that has OMV as a majority shareholder. Arpechim produces half of the fuel sold by Petrom.
Following the announcement some 2,000 workers at Arpechim are expected to be unable to work starting today.
If the plant doesn’t solve its safety and environmental problem, the Regional Agency for Environment Protection-Pitesti will have to annul its environmental authorization, meaning worse times for Arpechim.
According to minister Korodi, the agency has only suspended the environmental authorization for now because the plant did not comply with EU directives dealing with the integrated control of pollution and with strategic installations that process hazardous substances.
A Petrom press release sent to NewsIn on Monday night says that the closure of the refinery was a drastic measure that has a negative impact on the economy of Romania and especially on the petrochemical industry in the country. The document says Petrom will use all its legal means to challenge the measure.
HotNews.ro, May 29, 2007
Three to go in Electroputere Craiova takeover bid
Three companies were selected by Romania’s Agency for State Assets Recovery (AVAS) to continue negotiations for the takeover of the Electroputere Craiova plant, now put for privatization. The three companies are S.C. A5 Invest Caransebes, S.C. Grup Feroviar Roman and Al Arrab Contracting Company (Arabia Saudita).
Two offers - from Vienna International Holding Bucuresti and Peeker Atomic Energy System Colorado - were rejected.
S.C. A5 Invest Caransebes belongs to a consortium of companies controlled by Romanian businessman Stefan Vuza. It also bid in the privatization of Avioane Craiova, another key state-owned plant in Craiova, south Romania.
S.C. Grup Feroviar Roman is a private company operating rail transport and services.
And Al Arrab Contracting Company is an important construction companies in Saudi Arabia with branches across the whole Middle East.
Final, improved and irrevocable offers from the three bidders have to be submitted by June 5.
Electroputere SA Craiova was founded in September 1949 as an energy and railway transport equipment maker. It was divided in seven companies in 1990. The seven united back in the current Electroputere SA in 1994.
HotNews.ro, May 28, 2007
Two offers - from Vienna International Holding Bucuresti and Peeker Atomic Energy System Colorado - were rejected.
S.C. A5 Invest Caransebes belongs to a consortium of companies controlled by Romanian businessman Stefan Vuza. It also bid in the privatization of Avioane Craiova, another key state-owned plant in Craiova, south Romania.
S.C. Grup Feroviar Roman is a private company operating rail transport and services.
And Al Arrab Contracting Company is an important construction companies in Saudi Arabia with branches across the whole Middle East.
Final, improved and irrevocable offers from the three bidders have to be submitted by June 5.
Electroputere SA Craiova was founded in September 1949 as an energy and railway transport equipment maker. It was divided in seven companies in 1990. The seven united back in the current Electroputere SA in 1994.
HotNews.ro, May 28, 2007
UPDATE: Azeri oil group interested in Rompetrol
Azeri energy company Socar is interested in buying a stake in Romanian oil group Rompetrol as the two parties are working on a deal by which Socar would supply some 1 million barrels of oil monthly to Rompetrol, Reuters informs.
The news comes as Rompetrol president Dinu Patriciu announced in late March that he was holding talks with six companies interested in taking over a minority state in the group through a capital boost that would allow the investor to take over between 10-25% of its shares.
But the Reuters report was dismissed by Hamza Carimov, a representative of the Azeri state-controlled Socar group to Romania. Carimov told HotNews.ro on Monday that he did not know of such an accord or about a possible plan by Socar to buy Rompetrol shares.
The Azeri media has been speculating about a recent visit paid by Romanian Liberal Senator Mihai Lupoi to Baku. Reports claim the visit allowed for a deal that would have Rompetrol buy oil from Socar. But Senator Lupoi also dismissed the information in a statement for HotNews.ro on Monday. He said he visited the country as deputy head of a Romanian parliament group dealing with NATO issues.
Patriciu’s influence with the governing National Liberal Party (PNL) was a source of major controversy in the ongoing political crisis in Romania.
Still, according to the Socar website, Lupoi was accompanied in his visit to Azerbaijan by Lucian Budac, executive head of Vector Energy, a company of the Rompetrol group.
Iulian Panait, a broker with KTD Invest, told HotNews.ro that the evolution of Rompetrol on the Bucharest Stock Exchange would depend heavily on the quality of the future shareholder if such a transaction takes place.
“If it’s a big company, it will improve the notoriety of the Romanian company and turn it more attractive for foreign investment funds”, Panait said.
For his part, analyst Emil Stoica believes that Rompetrol might be interested in concluding a partnership with a drilling company such as Socar as the Romanian group’s main activities are related to oil processing and distribution.
But as unofficial information speaks of six companies interested in taking over a stake in Rompetrol, Stoica told HotNews.ro he would not exclude the possibility of the stake being bought by a financial investor.
HotNews.ro, May 22, 2007
The news comes as Rompetrol president Dinu Patriciu announced in late March that he was holding talks with six companies interested in taking over a minority state in the group through a capital boost that would allow the investor to take over between 10-25% of its shares.
But the Reuters report was dismissed by Hamza Carimov, a representative of the Azeri state-controlled Socar group to Romania. Carimov told HotNews.ro on Monday that he did not know of such an accord or about a possible plan by Socar to buy Rompetrol shares.
The Azeri media has been speculating about a recent visit paid by Romanian Liberal Senator Mihai Lupoi to Baku. Reports claim the visit allowed for a deal that would have Rompetrol buy oil from Socar. But Senator Lupoi also dismissed the information in a statement for HotNews.ro on Monday. He said he visited the country as deputy head of a Romanian parliament group dealing with NATO issues.
Patriciu’s influence with the governing National Liberal Party (PNL) was a source of major controversy in the ongoing political crisis in Romania.
Still, according to the Socar website, Lupoi was accompanied in his visit to Azerbaijan by Lucian Budac, executive head of Vector Energy, a company of the Rompetrol group.
Iulian Panait, a broker with KTD Invest, told HotNews.ro that the evolution of Rompetrol on the Bucharest Stock Exchange would depend heavily on the quality of the future shareholder if such a transaction takes place.
“If it’s a big company, it will improve the notoriety of the Romanian company and turn it more attractive for foreign investment funds”, Panait said.
For his part, analyst Emil Stoica believes that Rompetrol might be interested in concluding a partnership with a drilling company such as Socar as the Romanian group’s main activities are related to oil processing and distribution.
But as unofficial information speaks of six companies interested in taking over a stake in Rompetrol, Stoica told HotNews.ro he would not exclude the possibility of the stake being bought by a financial investor.
HotNews.ro, May 22, 2007
Current account deficit doubles
Romania's current account deficit reached 3.05 billion euros during the first quarter of the year, compared to 1.35 billions in Q1 2006, data published by the Romanian Central Bank (BNR) indicate.
The main influence on the evolution came from the imports / exports balance, that added up to 3.18 billion euros, 88.4% more than in Q1 2006.
Services had a positive sold of 173 million euros, although the tourism and the transportation businesses had 56 and, respectively, 77 million euro losses.
The current account deficit was covered 43% by direct foreign investments - a total of 1.31 billion euros, out of which two thirds were capital participation and reinvested profits.
The medium and long term debt at the end of March was 29.62 billion euros, 5.6% more than in 2006.
The foreign public debt and the public guaranteed debt at the end of March added to 10.56 billion euros.
HotNews.ro, May 16, 2007
The main influence on the evolution came from the imports / exports balance, that added up to 3.18 billion euros, 88.4% more than in Q1 2006.
Services had a positive sold of 173 million euros, although the tourism and the transportation businesses had 56 and, respectively, 77 million euro losses.
The current account deficit was covered 43% by direct foreign investments - a total of 1.31 billion euros, out of which two thirds were capital participation and reinvested profits.
The medium and long term debt at the end of March was 29.62 billion euros, 5.6% more than in 2006.
The foreign public debt and the public guaranteed debt at the end of March added to 10.56 billion euros.
HotNews.ro, May 16, 2007
Tuesday, May 08, 2007
Nuclearelectrica starts Cernavoda second reactor
A second reactor of the nuclear power station Cernavoda was started on Sunday evening for a series of low-power tests of its main component, a press release of the Nuclearelectrica company says on Monday. The tests are a preliminary phase before the reactor activity is gradually increased and connected to the mainframe energy system.
The reactor will be commercially operated starting September 2007 with a power of 700 MW. With the launch of the Cernavoda Unit 2, Nuclearelectrica will cover 17-18% of Romania’s overall electricity needs.
Cernavoda Unit 2 has been built according to 2003 contract with Atomic Energy of Canada Ltd and Italy’s Ansaldo. The CANDU 6 reactor equipping Unit 2 is the second such reactor on the Cernavoda platform.
The first one has been operating since 1996 and covers 10% of Romania’s national electricity production.
HotNews.ro, May 7, 2007
The reactor will be commercially operated starting September 2007 with a power of 700 MW. With the launch of the Cernavoda Unit 2, Nuclearelectrica will cover 17-18% of Romania’s overall electricity needs.
Cernavoda Unit 2 has been built according to 2003 contract with Atomic Energy of Canada Ltd and Italy’s Ansaldo. The CANDU 6 reactor equipping Unit 2 is the second such reactor on the Cernavoda platform.
The first one has been operating since 1996 and covers 10% of Romania’s national electricity production.
HotNews.ro, May 7, 2007
Russian billionaire Oleg Deripaska eyes Romanian carmaker Automobile Craiova
General Motors Corporation, Ford Motors Company and Russian Machines have submitted their first non-binding offers for the privatization process at the Romanian car producer Automobile Craiova, a press release of the Finance Ministry reads.
Russian Machines is part of the Russian group Basic Element, which is controlled by Oleg Deripaska, one of the richest men in the world. A Romanian privatization official, Mihai Voicu, confirmed for HotNews.ro on Thursday that the Russian company submitted its offer on Wednesday, hours before the deadline expired.
Oleg Deripaska is known as “king of Russian aluminum” and is the world’s 40th richest man, according to the latest Forbes listing. Married to one of the Boris Yeltsin’s nieces, he is one of the select Russian moguls backed by the current leadership at Kremlin.
He owns Russian car maker GAZ, the Aviacor plane factory, the insurance company Ingosstrakh and bus maker RusPromAuto. But his most important asset is the Ruskii Aluminii (Rusal) company, the largest such company in Russia.
According to recent revelations by Romanian newspaper EvZ, quoting a classified note of the Romanian intelligence services, Deripaska has tried to take over control over the whole aluminum industry in Romania when Romanian state-controlled aluminum makers Alro Slatina, Alprom Slatina and Alum tulcea were put on sale by the 2000-2004 government led by Social-Democrat Adrian Nastase.
The companies were eventually sold to the Marco group, established by Marc Rich and later passed to Russian magnate Vitaly Machitski.
The sale of Automobile Craiova
The Romanian Government will sell 95% of the stock at Automobile Craiova, currently owned by the State’s Assets Agency (AVAS) and SIF Oltenia, a financial investment society.
AVAS and SIF Oltenia will sign an agreement allowing AVAS to offer, negotiate and sign the sale contract for the stock held by SIF Oltenia at SC Automobile Craiova.
A similar agreement will be signed with all the minority shareholders. The sale will result from the negotiation based on final binding offers, in two stages, with an initial offer bearing equal conditions for all bidders.
Daewoo Automobile Romania was born in 1994 as a joint venture involving the Romanian state (through Automobile Craiova) and Daewoo Heavy Industry, in a 49 / 51% balance of shares.
General Motors and other partners took over some of the bankrupt Daewoo Motor assets, but not the Romanian branch. In 2004, Daewoo Motor bought paid its debts towards the Romanian state with its own shares.
The Automobile Craiova transaction is estimated at some 60 million US Dollars, out of which 10 millions are the debt of the company towards firms in the Daewoo group.
The first investors to show interest in Automobile Craiova were Ford Motor, General Motors, Renault SA-Nissan Motor, the Chinese group Chery Automobile and the Indian company Tata.
HotNews.ro, Apr 26, 2007
Russian Machines is part of the Russian group Basic Element, which is controlled by Oleg Deripaska, one of the richest men in the world. A Romanian privatization official, Mihai Voicu, confirmed for HotNews.ro on Thursday that the Russian company submitted its offer on Wednesday, hours before the deadline expired.
Oleg Deripaska is known as “king of Russian aluminum” and is the world’s 40th richest man, according to the latest Forbes listing. Married to one of the Boris Yeltsin’s nieces, he is one of the select Russian moguls backed by the current leadership at Kremlin.
He owns Russian car maker GAZ, the Aviacor plane factory, the insurance company Ingosstrakh and bus maker RusPromAuto. But his most important asset is the Ruskii Aluminii (Rusal) company, the largest such company in Russia.
According to recent revelations by Romanian newspaper EvZ, quoting a classified note of the Romanian intelligence services, Deripaska has tried to take over control over the whole aluminum industry in Romania when Romanian state-controlled aluminum makers Alro Slatina, Alprom Slatina and Alum tulcea were put on sale by the 2000-2004 government led by Social-Democrat Adrian Nastase.
The companies were eventually sold to the Marco group, established by Marc Rich and later passed to Russian magnate Vitaly Machitski.
The sale of Automobile Craiova
The Romanian Government will sell 95% of the stock at Automobile Craiova, currently owned by the State’s Assets Agency (AVAS) and SIF Oltenia, a financial investment society.
AVAS and SIF Oltenia will sign an agreement allowing AVAS to offer, negotiate and sign the sale contract for the stock held by SIF Oltenia at SC Automobile Craiova.
A similar agreement will be signed with all the minority shareholders. The sale will result from the negotiation based on final binding offers, in two stages, with an initial offer bearing equal conditions for all bidders.
Daewoo Automobile Romania was born in 1994 as a joint venture involving the Romanian state (through Automobile Craiova) and Daewoo Heavy Industry, in a 49 / 51% balance of shares.
General Motors and other partners took over some of the bankrupt Daewoo Motor assets, but not the Romanian branch. In 2004, Daewoo Motor bought paid its debts towards the Romanian state with its own shares.
The Automobile Craiova transaction is estimated at some 60 million US Dollars, out of which 10 millions are the debt of the company towards firms in the Daewoo group.
The first investors to show interest in Automobile Craiova were Ford Motor, General Motors, Renault SA-Nissan Motor, the Chinese group Chery Automobile and the Indian company Tata.
HotNews.ro, Apr 26, 2007
Monday, April 16, 2007
"The Economist: Romania - About Turn"
A month without a Foreign Minister, weeks of governmental paralysis, fratricidal scandals within the governing alliance - that's what makes the editors at The Economist say that Romania's joining the European Union "was a remarkable achievement. But keeping it a credible member may prove even harder".
After describing the TV confrontations between president Basescu and PM Tariceanu, as well as the history of the ForMin's seat vacancy, the authoritative weekly presumes that the Government is on the verge to collapse.
" The breaking point came this week when the Liberals said they would stay in the coalition only if the government pulled troops out of Iraq, and dumped three ministers, including the non-party justice minister, Monica Macovei. When the Democrats refused to agree, Mr.
Tariceanu pronounced the government “dead” and started work on forming a new minority administration with the Hungarians", The Economist reads.
The paper warns that the governmental crisis takes place days before Romania should present its progress in front of EU officials. The European Commission would present its own report on Romania's evolution in June.
HotNews.ro, Mar 30, 2007
After describing the TV confrontations between president Basescu and PM Tariceanu, as well as the history of the ForMin's seat vacancy, the authoritative weekly presumes that the Government is on the verge to collapse.
" The breaking point came this week when the Liberals said they would stay in the coalition only if the government pulled troops out of Iraq, and dumped three ministers, including the non-party justice minister, Monica Macovei. When the Democrats refused to agree, Mr.
Tariceanu pronounced the government “dead” and started work on forming a new minority administration with the Hungarians", The Economist reads.
The paper warns that the governmental crisis takes place days before Romania should present its progress in front of EU officials. The European Commission would present its own report on Romania's evolution in June.
HotNews.ro, Mar 30, 2007
Romanian firms to find place in statistics more easily
The National Statistics Institute in Bucharest prepares a new classification of economic activities (CAEN), to be published within months and enter effect on January 1, 2008. The classification contains 101 new classes of activity and is much more comprehensive than the existing one.
But the change will have some major collateral effects on firms, many of which will have to change registration certificates and renew their authorization.
New companies are facing serious difficulties with the current classification, as many activities are not included and it comes as a never-ending documentation that is very difficult to handle. Definitions and descriptions of activities are unclear and many need a law expert to help them establish a code for their activities.
According to National Statistics Institute-INS experts, the future classification will provide four new sections, 26 divisions, 48 groups and 101 classes of activitites in addition to the existing ones. That means firms will have more options to use an economic field or another.
“For example, a new section is that of “information and communication”. It takes over components from other divisions or classes that were connected to this field and groups them into a distinct section”, explains Gheorghe Constantinescu, deputy manager at the Enterprise Statistic Registry department of the INS.
And Anca Anghelescu, a judicial consultant, says that while it might be harder to discover what codes you should have, the new classification is more explicit and many troubles with the law will be avoided.
The new classification, called CAEN Rev.2, will bring about “implications at the level of public administration and economic agents, as the whole documentation referring to the codes of activity has to be changed”, says Constantinescu.
The Finance Ministry failed to answer HotNews.ro questions to explain how the changes must be applied.
HotNews.ro, Euractiv.ro, Mar 27, 2007
But the change will have some major collateral effects on firms, many of which will have to change registration certificates and renew their authorization.
New companies are facing serious difficulties with the current classification, as many activities are not included and it comes as a never-ending documentation that is very difficult to handle. Definitions and descriptions of activities are unclear and many need a law expert to help them establish a code for their activities.
According to National Statistics Institute-INS experts, the future classification will provide four new sections, 26 divisions, 48 groups and 101 classes of activitites in addition to the existing ones. That means firms will have more options to use an economic field or another.
“For example, a new section is that of “information and communication”. It takes over components from other divisions or classes that were connected to this field and groups them into a distinct section”, explains Gheorghe Constantinescu, deputy manager at the Enterprise Statistic Registry department of the INS.
And Anca Anghelescu, a judicial consultant, says that while it might be harder to discover what codes you should have, the new classification is more explicit and many troubles with the law will be avoided.
The new classification, called CAEN Rev.2, will bring about “implications at the level of public administration and economic agents, as the whole documentation referring to the codes of activity has to be changed”, says Constantinescu.
The Finance Ministry failed to answer HotNews.ro questions to explain how the changes must be applied.
HotNews.ro, Euractiv.ro, Mar 27, 2007
Sunday, March 25, 2007
Shell leaves Romania
The UK-Dutch oil group Shell announced on Wednesday that its liquefied gas (GPL) business in Romania, Bulgaria, Spain, Switzerland and the Czech Republic was sold to the French company Rubis. The transaction added up to 90 million euros, Reuters informs.
Through this operation, Shell ends all its activity in Romania.
According to Shell officials, the transaction is part of the company's new policy, oriented rather towards extracting oil than selling oil products.
"Shell focuses its investments in areas where its presence is already significant. We made a tremendous progress in simplifying out portfolio, reducing the cost and complexity of our operations", said GPL branch vice president Erwin Friederich.
In Romania, the transaction must first be approved by local dealer Petrom, partner (45% of the stock) in Shell Gas Romania.
Shell started to operate on the Romanian market in 1992, investing over 200 million dollars, mainly in developing its gas station network.
In 2006, the group had a 728.5 million euros business figure, with 44.2 million euros as profit.
HotNews.ro, Mar 22, 2007
Through this operation, Shell ends all its activity in Romania.
According to Shell officials, the transaction is part of the company's new policy, oriented rather towards extracting oil than selling oil products.
"Shell focuses its investments in areas where its presence is already significant. We made a tremendous progress in simplifying out portfolio, reducing the cost and complexity of our operations", said GPL branch vice president Erwin Friederich.
In Romania, the transaction must first be approved by local dealer Petrom, partner (45% of the stock) in Shell Gas Romania.
Shell started to operate on the Romanian market in 1992, investing over 200 million dollars, mainly in developing its gas station network.
In 2006, the group had a 728.5 million euros business figure, with 44.2 million euros as profit.
HotNews.ro, Mar 22, 2007
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