December 17 (SeeNews) - Croatia's government will be obliged to buy the gas business of local gas and oil company INA by December 1, 2010, state-run news agency Hina reported.
The Croatian government and Hungarian oil company MOL, which is the largest shareholder in INA, signed on Wednesday an annex to their agreement on INA's gas business.
Under the annex, MOL would provide a loan to INA so that the Croatian company could pay 1.0 billion kuna ($197 million/137 million euro) in taxes by the end of 2009, and INA pledged to pay its remaining tax dues by March 31 next year, Hina reported on Wednesday.
According to the annex, consumers can expect gas prices to rise at the beginning of 2010, Hina said. INA's gas business has been making losses due to the government's cap on prices.
Croatia's natural gas consumption totalled 3.2 billion cubic metres in 2008. The Adriatic country covers 40% of its gas needs through imports from Russia and 60% through domestic production.
MOL owns 47.15% of INA and the government in Zagreb holds a stake of some 44%.
(1 euro = 7.2944 Croatian kuna)