The Defense Headquarters of Petrokemija Sent a Letter to the Government: There Simply Is No More Time

Due to the suspension of gas supply, production of ammonia, a fundamental raw material for the production of mineral fertilizers, was halted at Petrokemija in Kutina on the night from Thursday to Friday. The Defense Headquarters of Petrokemija sent a letter to the Government on Friday morning due to concerns about the cessation of production and the uncertain future and fate of Petrokemija workers and the city of Kutina.

>>>The Defense Headquarters of Petrokemija Has Been Activated

“Despite the efforts being made to resolve the unfortunate situation in which the company has been for some time, your Government is already the third in a row that does not make the necessary decisions to preserve strategically significant production, whose impact on the overall economy of the Republic of Croatia is anything but negligible,” states the letter from the Headquarters to Prime Minister Andrej Plenković and the ministers responsible for the economy.

The Headquarters states that the Government of the Republic of Croatia, as the majority owner of Petrokemija, must urgently clarify what, how, and when it intends to do in order to ensure the stability of Petrokemija’s operations.

“The Management and Supervisory Board cannot make strategic decisions without you as the majority owner. That part of the job is up to you, and there simply is no more time,” the letter states.

It is also noted that the Headquarters has warned countless times about the importance of maintaining Petrokemija’s operations for the overall economy, but aside from “declarative ceremonial support and fruitless meetings, nothing has happened and no strategic decisions have been made.”

Necessary Liquidity

The Headquarters believes that the Government should show more energy and determination in solving Petrokemija’s problems, therefore they propose a meeting of the owners, gas suppliers, and creditors of Petrokemija with the aim of ensuring the necessary liquidity for the survival and stabilization of production in Kutina.

The Headquarters also demands the urgent adoption of a strategic decision regarding the position and future of Petrokemija, given the unfortunate state of Croatian agriculture. At the end of the letter, it is stated that the workers of Petrokemija and the citizens of Kutina will not silently watch as their jobs are destroyed, production is shut down, and the existence of the city and region is threatened.

Petrokemija announced on Thursday that it had received a letter from the natural gas supplier, Prvo plinarsko društvo, stating that it would suspend the supply of natural gas to Petrokemija on Friday from six in the morning due to an increase in debt for the supplied gas, which could consequently cause a blockade of the company.

>>>Petrokemija Faces a Blockade

In response to this news on Thursday evening, the Defense Headquarters of Petrokemija was activated, and this decision was made by the bodies of the Independent Union of Energy, Chemistry, and Non-Metals, the DEMOS-HUS Union, and the Association of Croatian Defenders of Petrokemija, which jointly form the Headquarters.

“Although there is no room for panic, we want to be prepared for all scenarios. Although we are the largest consumer of gas, the supply has not yet been permanently resolved. The gas debt was reprogrammed, but it is clear that this initiative has not borne fruit,” said Davor Rakić, spokesperson for the Headquarters and chief commissioner of EKN, last night for Hina.

The CEO Đuro Popijač expressed his belief that this is only a temporary interruption of supply by PPD, while INA will continue to supply as before. He also stated that he is in constant contact with the Government regarding the restructuring process, so favorable solutions are expected.