Difficult Negotiations Between Mol and Croatia Over INA

The skirmish between Hungary’s oil and gas group Mol Nyrt and Croatia’s government over the control of INA Industrija Nafte continues, as the government of the Balkan country tries to reassert its grip on the $7.3 billion refiner. 

According to Bloomberg, Mol could sue Croatian for $351 million if the talks are not successful.

“Clearly the negotiations will be tough, since the Croatian authorities have put forward a number of requests, and Mol doesn’t want to lose its control over INA, which has important upstream assets,” Olger Galbur, analysts at Raiffeisen Centrobank AG, said by e-mail to Bloomberg. 

Croatia owns 44.84% of INA, Mol detains 49.1%.

The Adriatic nation wants to renegotiate a 2009 deal that gave Mol control over INA. Mol said that it might consider some changes to the deal, but it is intentioned not to lose its grip on the company. Croatia’s government complains Mol has resisted investing in INA, treating it as a subsidiary.