According to aforementioned businessman, measures are required in infrastructure works and a streamline of management procedures, to remove administrative barrier from capital investments.

“The crisis has already spawned damages in real estate industry and on stock market, and probably the banking system is next. I believe all lending conditions should be relaxed. There is money on the market, but not in banks. NBR is narrowly curing the market”, Rompetrol representative pointed out.

He added that financial systems will sharply change, as they are not set for globalization.

Patriciu considers speculations as main cause of national currency meltdown.

Rompetrol’s CEO said “The client is slave between banks and real estate developers. Average prices per square meter must drop in Romania,” appending that since the beginning of this year, the real estate market slumped 50% and the trend will continue.

Patriciu says he cannot disclose stock price in KazMunaiGaz-Rompetrol deal

Rompetrol’s chairman Dinu Patriciu said he cannot disclose the price paid by KazMunaiGaz for 75% stake in Rompetrol, after the Kazakh-based KazMunaiGaz’s annual earning report made public 1.6 billion US dollars, sum confirmed by a KMG representative.

“There are privacy policies within the contract valid for years from now. I cannot say the price paid by KazMunaiGaz, but as in all deals the estimated value of the company is disclosed, in case of Rompetrol was 3.616 billion US dollars. I refuse to comment any of the data that appeared in KazMunaiGaz’s annual earning report,” Dinu Patriciu stated.

Annual earning report of KMG specifies that the Kazakh company paid 1.6 billion US dollars for 75% stake in Rompetrol. Information Policy Department Director, Ilya Pustogachev confirmed in Astana the amount, adding it was a great deal.

Late August 2007, KMG acquired 75% of Rompetrol, and at that time, the market estimated the company at 3.616 billion US dollars.

Patriciu: Rompetrol lays-off 2,000 by yearend

Rompetrol’s future plans include a cut of workforce by 2,000 by yearend, the dismissed persons following to receive pay packages equivalent to six net salaries, Dinu Patriciu, Rompetrol’s chairman stated.

“Employees who will be discharged will receive up to six compensatory salaries. At Petromidia, for example, the average net salary is USD 1, 100,” Patriciu pointed out.

He added that the discharge program was framed in 2006 and would have been effective even if the 75% stake hadn’t been sold.

“540 employees were discharged so far, but meanwhile, we are recruiting as well. We will open 30 gas stations where 400 people are needed and 150 express station that will require 200-250 staff. At the end of this year, 2,000 will be laid-off, in all 13 countries where Rompetrol is active. 180 persons left Petromidia this year. At the same time, we are providing support for discharged persons in finding new jobs,” Dinu Patriciu stressed.
Late August 2007, KazMunaiGaz acquired 75% stake in Rompetrol.

Translated and adapted by Camelia Oancea.