OMV Petrom may have to pay solidarity contribution in Romania after proposed amendments

Both the Government and the lawmakers in Romania are working on amending the solidarity contribution calculation methodology, such as to include OMV Petrom among those required to pay to budget part of the windfall profit generated last year, but the outcome is still unclear.

OMV Petrom repeatedly declared that, based on existing regulations, it is not liable to pay solidarity contribution – since its specific revenues from the sale of oil and gas, subject to the contribution recommended by the European Commission, account for less than 75% of its total revenues.

As a vertically integrated company, OMV Petrom derives a large part of its revenues from the sale of petroleum products, while the gains from the sale of electricity are also important.

The Romanian Government, however, will include the revenues derived from the sale of petroleum products resulting from the refining of its own crude oil production in the calculation of the ratio that thus might increase above 75%. The Government has discussed this detail with the European Commission, according to Profit.ro.

Separately, the Social Democrat (PSD) lawmakers amended the law that turns the Government’s emergency ordinance into law, in the sense of including the revenues derived from the sale of electricity produced based on own natural gas production in the calculation of the 75% ratio, Economica.net reported.

The amendments proposed by the Government and lawmakers may eventually result in OMV Petrom paying to the public budget part of its windfall profit derived last year from the record price of petroleum products and electricity – which is the spirit of the European Union’s recommendations.

(Photo source: Flickr/OMV Petrom)