“The expanded supervision mechanism creates the necessary control and prevention system to protect the interests of the Romanian state in both refining, fuel distribution and offshore gas fields, which directly affects national energy security,” the energy ministry said in an explanatory note.
The proposed supervision will apply to Lukoil Romania, the Petrotel-Lukoil refinery, Lukoil Lubricants East Europe and the Bucharest branch of Lukoil Overseas Atash B.V.
The ministry warned that the closure of Petrotel-Lukoil and Lukoil Romania, which account for about 23% of the country’s petroleum products market, would significantly disrupt domestic supplies, forcing Romania to rely on imports and likely leading to higher gasoline prices.
How this will affect the market
Moldova could also be affected, as the republic receives almost all of its gasoline from Romania.
According to the draft decree, the two companies also play a key role in crude oil refining and fuel trading, owning about 18% of Romania’s mandatory emergency oil and fuel storage facilities.
The document also emphasizes Romania’s participation in the Trident offshore Black Sea gas project, where Lukoil Overseas Atash B.V. is a major shareholder, along with the state-owned natural gas company Romgaz.
The appointed manager will oversee the companies’ financial operations, approve major transactions and monitor management decisions, ensuring that assets are not misused in ways that could violate international sanctions imposed on Russian entities.
The draft decree must be approved by the government and published in the Official Gazette before it enters into force.
Sanctions requirements
The Romanian government approved the necessary legal framework for supervision in December by adopting an emergency decree that allows it to exercise enhanced supervision and appoint a public manager for local companies affected by international sanctions.
In November, local media reported that Romania was no longer considering acquiring the Petrotel-Lukoil refinery due to a lack of cash.
Also in November, Energy Minister Bogdan Ivan said that Romania should control Lukoil’s local assets to ensure the stability of the national energy system, save 5,000 jobs, and guarantee full implementation of U.S. sanctions.
On January 29, Lukoil announced that it had reached an agreement to sell its international business to the U.S. investment company Carlyle, including Romanian and Moldovan assets.
