Filipović: MOL cannot prevent the implementation of the government decision

The decision that gas produced in Croatia remains in the country was not agreed upon with MOL, but the Hungarians are now not in a position to prevent the implementation of that government decision, said Minister of Economy and Sustainable Development Davor Filipović on Wednesday after the government session.

According to him, Ina will sell all domestic gas to HEP at the currently lowest price set by HERA, which is a price for citizens of 41 euros per megawatt hour, while today’s gas price on the exchange is 227 euros per megawatt hour. HEP will further distribute all that gas to citizens and institutions.

Today’s government decision that all gas produced in Croatia will be sold to HEP, he emphasized, was not agreed upon with MOL, but was made in accordance with the law. He stated that he would talk to representatives of MOL today and inform them of the decision, but emphasized that he had announced this to them last week.

He says there is no way for MOL to prevent today’s government decision.

When asked what the production price of Ina’s gas in Croatia is, he said that for that data one should ask Ina, but that the lowest price that could be set according to current regulations has been established.

– The production price is certainly lower than the one we have set –  said Filipović, adding that everything was done according to the law. 

Filipović says that the statement by the CEO of Ina, Sandor Fasimon, that Ina sells domestic gas in Croatia is only technically correct.

– He technically stated what is true, because there are foreign companies that establish a company in Croatia, some kind of LLC, and then Ina sells gas to that LLC and it sells it further. Technically, that is correct, but when we look at it realistically, it is not so –  emphasized Filipović. 

When asked whether MOL can seek some compensatory measure related to today’s government decision, or the fact that it will lose part of its earnings, he replied that we need to “consider the times we live in” and how to help citizens and businesses. 

He claims that today’s gas and electricity prices are mainly a result of speculation. 

– Therefore, someone cannot sell gas produced in Croatia at prices that are absolutely inappropriate now, based on speculative moves, at the expense of our citizens –  said the minister. 

What if MOL refuses to change the management model in Ina, will arbitration be pursued, was one of the questions, to which he replied that MOL is currently “not in a position” to refuse such things, as the wrong way of corporate governance has led to one of the biggest corporate scandals. 

He added that Ina will produce 10 percent more gas this and next year compared to the original plan, while it will be seen for the following years, and if technically possible, production will be further increased.   

He reiterated that he will insist on the dismissal of the entire Ina management and a change in the corporate governance model. 

Regarding the problems at the shipyard 3. maj, he said that the state has repeatedly stood by that shipyard, and that the government supports shipbuilding in Rijeka. However, he noted that the government has sent a message to the management of the shipyard that a restructuring plan needs to be developed and a radical turnaround is necessary for the shipyard to operate at a satisfactory level in the future.