‘The Law on the Privatization of INA is in Accordance with the EU’

Finance Minister Slavko Linić stated last night that the Ministry of Finance believes that the Law on the Privatization of INA is in accordance with EU rules and competition rules and that it does not need to be significantly changed.

Linić confirmed that the Ministry of Finance has received a proposal for amendments to the Law on the Privatization of INA. According to announcements from some media, these amendments, as part of alignment with EU rules, would remove Article 10 on the protection of the interests of the Republic of Croatia from the Law.

“We in the Ministry of Finance believe that the Law is in accordance with European regulations and that it does not need to be significantly changed,” said Linić on the HTV show Tema dana.

He announced that the finance department will prepare a report regarding that part.

“I do not think we will agree, but in this case, I can express my opinion,” said Linić, reiterating that his ministry believes that the Law is in accordance with EU rules, in accordance with competition rules, and that it should not be changed.

In the Ministry of Economy this afternoon, regarding the announcements of amendments to the Law on the Privatization of INA, it was only possible to learn that the amendments are being prepared and that they will align the law with European rules on the protection of market competition.

The portal Energetika-net.com reported that the Government has prepared a draft amendment to the Law on the Privatization of INA under which the state, as part of joining the EU, renounces special rights in INA contained in Article 10.

This article, titled Protection of the Interests and Security of the Republic of Croatia, would be abolished, and such a provision would come into force upon Croatia’s accession to the EU, the portal announces, noting that it possesses the draft proposal.

Article 10 of the Law on the Privatization of INA regulates the protection of the state’s interests in INA, i.e., certain special rights such as controls over changes in ownership, the right of veto on certain management decisions, etc.

This article also regulates that in the event of liquidation proceedings against INA or its legal successor, and for the entire time while the state is the owner of one or more shares with voting rights, the Republic of Croatia has the right of first refusal for the entire or part of INA’s assets at their estimated market value.

The Croatian Government holds 44.84 percent of shares in INA, while the Hungarian MOL holds 49.08 percent.