Romania Approves Transaction Between NC KazMunayGas and China Energy Company Limited

KMG International Group (KMGI) on Thursday welcomed the recent decisions of the Romanian authorities approving the transaction signed at the end of 2016 between its main shareholder – national company KazMunayGas Kazahastan (KMG) and China Energy Company Limited (CEFC).

“Completion of the transaction will create a solid foundation for cooperation between KMG and CEFC, which will further expand the activities of KMGI in Eastern and Western Europe, as well as in other regions of the world. The joint venture will be able to take advantage of the energy potential of Kazakhstan and China’s financial resources to expand its activities throughout the area of the global project “One Belt – One Way”.

The project represents exceptional opportunities for expanding the activities of KMGI in the territory of the Republic of Kazakhstan, which in turn will ensure the implementation of the Government’s programs to attract investment in our country.

The transaction allows for the creation of an important strategic partnership in the energy field which will be based on the assets and operations of KMGI for the future development and investments of KMG – CEFC in the Black Sea region and in Europe. This will ensure the increase of operational and financial performance of KMGI and the expansion of the activities and operations performed by CEFC at international level.

The shares of KMG and CEFC in the new joint-venture KMGI will be 49% and 51%, respectively.

In December 2016, KMG and CEFC signed an agreement of buying 51% of KMGI Group shares, which owns and carries out operations refining, trading and distribution of oil products through the Rompetrol gas stations in Romania, Bulgaria, Moldova, Georgia, as well as through its partners in the Black Sea region. (evz.ro)

  Competition Council Fines Siveco And Intrarom A Total EUR1.75M

Romania’s Competition Council fined two IT companies a total RON8 million (nearly EUR1.75 million) for rigging a public acquisition procedure organized by the agriculture paying agency APIA in 2008 to award a frame agreement for services aimed at extending and developing the computer system.

The estimated value of the frame agreement stood at EUR12,000,000, VAT not included.

Intrarom S.A. was fined RON2,125,796.48 and Siveco Romania S.A. was fined RON5,883,899.07.

The investigation set off based on information provided by Romania’s Court of Accounts. Within the investigation, the antitrust regulator obtained evidence showing the two companies colluded to allow Intrarom S.A. to participate only formally in order to ensure the number of auction participants, without actually competing against Siveco Romania S.A..

Within public acquisition procedures, the purpose of each company must be to win under normal conditions of competition, enabling the end consumer to benefit from qualitative products and services at advantageous prices. (cotidianul.ro)

Social Contributions, Owed By Employees, But Established, Retained And Paid To State Budgets By Employers

Employees will owe the mandatory social contributions starting with January 1, 2018, but employers will still have the obligation to establish, retain and pay them to the social security budgets, Finance Ministry representatives said in a statement on Thursday.

“The amounts representing CAS and CASS, which are currently due by the employer in their own name, will be taken over by the employee. This measure will provide the employee with an increase in the score taken into account when determining the pension and implicitly a higher pension,” reads the release.

On Wednesday, Prime Minister Mihai Tudose said that as long as he is the head of the Executive, the measure regarding the transfer of the CAS and CASS payment obligation from the employer to the employee will not be enforced. (puterea.ro)

Romania Puts Off Enforcement Of Personal Insolvency Law For Third Time   The Romanian Government on Thursday decided, through an ordinance, to postpone by another five months, the enforcement of the personal bankruptcy law, until January 1, 2018.

The law was adopted by the Parliament on May 20, 2015.

The law regulating the personal bankruptcy procedure for natural persons sets that people unable to pay their debts, through no fault of their own, can reschedule their debts based on a financial recovery plan, over a five-year period.

Under the law, the people declaring personal bankruptcy are protected against foreclosure. However, a debtor’s expenses will be checked upon by a judicial administrator. People convicted of tax evasion or those entering insolvency fraudulently or amassed new debts by making expensive acquisitions shall not enjoy the provisions of the law. (puterea.ro)

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