The Ministry of Energy recommended placing the entities owned in Romania by the Lukoil group under an extended state supervision regime, based on an emergency ordinance passed on December 2, allowing the state to establish such a regime for companies under international sanctions. The ministry proposed Bugheanu Ion-Bogdan as supervisor, according to a draft decision published on February 11 on the website of the Ministry of Energy.

The regime will allow the Ministry of Energy to intervene quickly in the event of risks that would affect the supply of crude oil, the operation of refining facilities, or deliveries to the distribution chain. Thus, the national processing capacity will be protected, and blockages that could destabilise the fuel market will be avoided.

Under the provision of the emergency ordinance, the government of Romania is entitled to appoint supervisors to monitor the activity of Lukoil's Romanian subsidiaries, "to identify any reasonable indications regarding the conduct of any operations with designated persons and/or entities, which are subject to unilateral sanctions adopted by other states, which are not mandatory for Romania" and to approve all their external transactions and payments.

The appointment of Ion-Bogdan Bugheanu as supervisor at the 4 companies is also being prepared. Market sources said that Bugheanu is an advisor to the cabinet of the minister of energy, Bogdan Ivan.

"The operations of supervised entities require the supervisor's approval, prior verification of external transactions, analysis of financial and commercial flows, observation and supervision of the managerial decision-making process, as well as the rapid identification of risks associated with international sanctions. All these measures are intended to be a guarantee that financial flows cannot be directed to entities under sanctions," the document emphasised.

The extended supervision will enter into force on the date of adoption of the government decision. 

The extended supervision measure targets: Lukoil Romania SRL, 100% owned by Litasco SA, Switzerland; Petrotel-Lukoil SA, owned by Litasco SA, Switzerland - 99.7676% and other shareholders - 0.2324%; Lukoil Lubricants East Europe SRL, 100% owned by Lukoil International GmbH; Lukoil Overseas Atash BV, Amsterdam, Netherlands, Bucharest Branch.

iulian@romania-insider.com

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