Rompetrol sued the Romanian state for the solidarity tax

Rompetrol Rafinare, part of the KazMunayGas International group (Rompetrol Group) sued the Government for the imposition of the solidarity tax.

“Following the adoption of Emergency Ordinance no. 186/2022 regarding emergency intervention to address high energy prices, Rompetrol Rafinare SA paid in July 2023 the amount of USD 128 million. After completing the mandatory administrative procedure to challenge this tax, which was rejected by the tax authorities, Rompetrol Rafinare SA submitted, on March 8, 2024, the challenge to the court. No date has yet been set for the hearing,” according to the 2023 report by Rompetrol Rafinare Constanta.

The company reported a huge loss in 2023 of around $270 million and budgeted for a loss this year as well, with the additional tax imposed by the state also contributing to this situation. As such, the company that manages the Petromidia refinery, the largest in Romania, has written down assets of almost a quarter of a billion dollars.

“Against the background of the latest long-term forecasts related to macroeconomic factors (e.g. declining European refining margins, declining dynamics of demand for refined products, increasing weighted average cost of capital) and considering the latest legal provisions in taxation matters ( solidarity tax, turnover tax), the year-end 2023 revaluation report of assets owned and operated by the company, coordinated and audited by companies part of the Big Four, revealed a devaluation of operational assets with a value of 223 million dollars, approximately 82% of the negative net result of 2023. The assessment was carried out in accordance with the accounting policy adopted in 2021, to support Rompetrol Rafinare’s commitment to provide accurate and transparent financial information“, the company stated in an information from February.

All these factors devalue the entire chain of operational assets, and the limited financial resources are directed by the company as a priority to maintenance and overhaul projects, but also to ensuring the mandatory technological and environmental investments. The significant decrease in financial resources for the continuation of plans to modernize current activities, but also for the development of new energy efficiency projects, influences the prospects, competitiveness and regional stability of the company“, the company also stated.

Rompetrol Rafinare officials say that in only one year out of the last five the company recorded a profit – 2022 – and then the company was made to pay the solidarity tax. For this year, the company will also pay the so-called “holding tax”.

KazMunayGas International groupPetromidia refineryRomaniaRompetrolsolidarity taxsued
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  • Panagiotis Spyridis

    You wanted the Kazakhs in. This is how they treat you now!