Croatia plans to ban exports of locally produced natural gas, Economy Minister Davor Pylypović said on Wednesday, raising the stakes in already strained relations with neighboring Hungary.
This is stated in the Euractiv publication.
Croatia and the Hungarian oil and gas company MOL jointly own one of the largest Croatian utilities, the oil and gas concern INA.
"The message that I also sent to the MOL representatives is that INA plans to produce 703 cubic million of natural gas in 2022, and all this gas produced in Croatia must be delivered at an affordable price to Croatian citizens, institutions, hospitals, children's kindergartens," the minister said after a meeting with MOL representatives in Zagreb, reports the state television company HRT.
"Next week, the government will make a decision according to which Croatian gas will go to Croatian companies and citizens," the minister said.
When asked if this meant that Zagreb would effectively ban natural gas exports, Pylypović explained that the government would formally order INA to sell all gas produced in Croatia to Croatian citizens, institutions and companies.
Pylypović also made it clear that the INA leadership no longer has the support of the Zagreb government, which is why INA CEO Sandor Fasimon has submitted his resignation.
MOL is INA's largest shareholder with a 49.08% stake, while the Croatian government owns just under 45%. The two largest shareholders have been embroiled in several legal battles over the past decade.
In the latest INA scandal, Croatia arrested five people, including a senior INA manager, on suspicion of organizing a scheme to resell INA's natural gas to third parties.
