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October 8, 2014
This is bne's Southeast Europe daily newsletter, a list of the top stories from the
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SE TOP STORIES
1. 14 killed as Kurds protest across Turkey
2. Bulgaria centre right GERB party to try and for minority government
3. Gazprom may take stake in Serbia’s Petrohemija
4. Hungary's MOL inching towards majority in Croatia's INA
5. Serbia Seeks Limited Free-Trade Regime With Russia
STORIES FROM WEBSITE
6. BRICKS & MORTAR: Interest piqued in CEE's riskier property markets
7. Ukraine's egg king finds his bank, other businesses in financial hot water
SE RESEARCH & COMMENT
8. Romania: Nuclearelectrica (SNN RO): (E)GSM resolutions – neutral (company
release)
9. Romania: SIFs, Bucharest Stock Exchange (SIF1 RO, SIF2 RO, SIF3 RO, SIF4 RO,
SIF5 RO, BVB RO): Proposed reforms are now included in a draft law instead of an
ordinance – neutral (mfinante.ro)
10. Romgaz cut to HOLD, TP RON 39.5 - Good yields but subdued growth
11. Rosatom risks
12. Turkey, the Kurds and Iraq: The Prize and Peril of Kirkuk
SE OTHER NEWS
13. Bulgaria's GERB to Start Talks on New Gov't Monday
14. Grey economy in Croatia much above European average
15. LUKoil Seeks European Cash for Project Undercutting Gazprom's South Stream
16. Moldovan authorities fine 4 TV channels for re-broadcasting Russian programs
17. Montenegro Puts Leading Defense Company Up for Sale
18. Romanian senator, former minister get jail sentences in Rompetrol refinery stock
manipulation
19. Russia's LUKOIL begins oil refinery startup in Romania
20. Serbia’s 23% Pile of Bad Loans Lures Distressed Debt Funds
SE TOP STORIES
1. 14 killed as Kurds protest across Turkey
bne
October 8, 2014
Up to 14 people were killed in violent protests across Turkey on October 7. Kurdish
groups demanding intervention against the Islamic State militants in Syria clashed
with both police and members of the radical Islamic group Hizbullah.
Protests broke out in towns across the majority Kurdish east and southeast regions
of Turkey on October 7, as Turkey’s Kurdish population expressed its anger and
frustration over the lack of action to prevent the fall of Kobane, a mainly Kurdish
town on Syria’s border with Turkey.
Eight people were killed in the southeastern town of Diyarbakir, where according to
Hurriyet Daily News members of the radical Islamist group Hizbullah opened fire on
pro-intervention protesters. Five of those killed in clashes between protesters
sympathetic to the outlawed Kurdistan Workers' Party (PKK) and Islamist radicals
were linked to Hizbullah.
Elsewhere in Turkey more deaths were reported as Kurdish protesters clashed with
police. Almost 100 people were detained in Istanbul, and arrests were also made in
Ankara. A curfew has now been imposed across six Turkish regions.
Turkish security forces also prevented hundreds of Kurds from crossing the border to
fight against Islamic State (IS) militants in Kobane.
Turkish forces are reported to be lined up along the country’s border with Syria, but
so far have not advanced.
Turkey’s relationship with its large Kurdish population is the main reason for
Ankara’s reluctance to become involved in the conflict. The Turkish government
wants to see Bashir Al-Assad toppled in Syria, but does not want to see either the
Syrian Kurds or the outlawed Kurdistan Workers' Party (PKK) in Turkey strengthened
as a result.
Turkish President Recep Tayyip Erdogan said on October 7 that Kobane was about to
fall, and called for cooperation “for a ground operation.”
“We had warned the West. We wanted three things: no-fly zone, a secure zone
parallel to that, and the training of moderate Syrian rebels,” Erdogan said during a
visit to a Kurdish refugee camp, the BBC reported.
On October 2, the Turkish parliament approved a motion to allow a military force in
Iraq and Syria against the IS. Some three-quarters of MPs voted in favour, signalling
a major change in Turkey’s stance on intervention. The vote would allow Turkish
forces to be deployed in both countries, alongside around 40 other members of a
Nato-led coalition, as well as allowing foreign troops access to Turkish territory.
While Turkey has borne the brunt of Kurdish anger over the lack of action in Syria,
there have also been demonstrations in several other European countries. Hundreds
demonstrated in several German cities, and a small group of protesters broke into
the European parliament on October 7.
2. Bulgaria centre right GERB party to try and for minority government
Elana Trading
October 8, 2014
GERB, the larger centre-right party in Bulgaria, won the general election, but still
does not have the majority to form a government.
The new National Assembly will be heavily fragmented, say analysts, as a parties are
entering in the new session.
Forming a new government looks extremely difficult, however, GERB will try and
form a minority government.
If this fails in the worst case scenario it will be necessary to call fresh elections as
soon as this December.
3. Gazprom may take stake in Serbia’s Petrohemija
bne
October 8, 2014
Russian gas giant Gazprom may take a stake in Serbian petrochemicals company
HIP-Petrohemija in return for writing off Serbia’s outstanding natural gas debts.
Serbian Foreign Minister Ivica Dacic said during a visit to Moscow on October 7 that
the debts may be exchanged for a stake in Petrohemija. He did not specify how large
the stake would be.
"We talked today and agreed to repay the debt with the property, specifically the
Petrohemija company,” Dacic told journalists in Moscow according to reports in the
Serbian press.
Serbia has outstanding debts of around $180m for natural gas supplies from Russia.
This includes $148m for supplies during February-March 2013 and March-April 2014,
as well as $34.8m for gas supplied back in 1995-2001, according to a source quoted
by ITAR-TASS
Gazprom has proposed extending the terms for its repayment scheme for the 19952001 supplies until the end of this year, which would mean payments of $3 per
1,000 cubic metres added to the payments Serbia is due to make for gas supplies
this year.
HIP-Petrohemija is Serbia’s largest petrochemicals company, with total capacity of
more than 600,000 tonnes a year. The Pancevo-based company generates around
80% of its revenues from exports, mainly to European Union countries.
However, the company was forced to suspend production during the global financial
crisis, later restarting operations after receiving financial support from Belgrade and
agreeing to reschedule its debts with oil and gas company Naftna Industrija Srbije
(NIS), which is 56.15 % owned by Gazprom. In 2011, it signed a strategic
cooperation deal with NIS.
During his visit to Moscow, Dacic also asked Russia to look at alternative ways to
supply gas to Serbia, as supplies to both Serbia and other East European countries
via Ukraine have dropped recently.
Serbia is planning to go ahead with construction of its section of the South Stream
gas pipeline that will carry gas from Russia to Europe, bypassing Ukraine. The
director of Serbian state gas company Srbijagas, Dusan Bajatovic, said on
September 26 that he expects work to start in late October or early November,
despite opposition from the European Union to the project.
4. Hungary's MOL inching towards majority in Croatia's INA
bne
October 8, 2014
MOL is closing in on the acquisition of a 0.8% stake in Croatian oil and gas company
INA, according to local press, which would bring the Hungarian group within a
whisker of a majority in the company, over which it is fighting a bitter battle with
Zagreb.
MOL is close to clinching a deal to buy 80,000 INA shares from Raiffeisen Bank
International's (RBI) pension fund in Croatia for at least HRK320m (€42m),
according to Croatian daily Poslovni Dnevnik, which named no source for the story.
The pension fund's parent, RBI, was hired by MOL as advisor regarding its holdings
in INA, the newspaper points out.
Should the purchase go through, MOL would be within a hair’s breadth of taking
control of INA. The Hungarian oil and gas company currently holds 49.08%. The
Croatian state, which has been fighting to regain operational control of INA, retains
44.84%.
MOL launched a failed attempt to gain control via an offer to holders of the free float
in 2010, although it did manage to scoop up a stake of around 1.6%. News of the
potential purchase from RBI pushed INA shares higher on the Zagreb bourse.
Read more here: http://www.bne.eu/content/story/hungarys-mol-inching-towardsmajority-croatias-ina
5. Serbia Seeks Limited Free-Trade Regime With Russia
The Moscow Times
October 8, 2014
Serbia has asked Russia for a free-trade regime for certain classes of goods, news
agency TASS reported Tuesday, citing Russian Energy Minister Alexander Novak.
Serbia would like the proposed free-trade regime to cover sugar, cigarettes, alcohol,
meat, poultry and cars, Serbian Foreign Minister Ivica Dacic said. The agreement
would cover bilateral trade in these goods, and would therefore require changes
to duties paid by both Russia and Serbia.
Read more here: http://www.themoscowtimes.com/business/article/serbia-seekslimited-free-trade-regime-with-russia/508585.html
STORIES FROM WEBSITE
6. BRICKS & MORTAR: Interest piqued in CEE's riskier property markets
Tim Gosling in Prague
October 7, 2014
Investors were underwhelmed in late September when Polish real estate investor
GTC announced a rights issue to fund an acquisitions drive across Central and
Eastern Europe. But analysts also think that now is the time to strike on real estate
in riskier markets in the region, although the strategy remains simplistic.
Saddled with a portfolio weighed down over the last five years or so by sluggish
economic growth around the region, GTC has been struggling in recent years. The
€70.1m loss it reported in the second quarter of the year was led by huge cuts in
valuations, with assets in Croatia and Romania doing the most damage.
However, with US fund manager Lone Star in control since November, GTC is now
hunting for more capital to finance acquisitions in the same region. The company
announced on September 15 a plan to issue 140m shares, expanding outstanding
stock by 43%. Shareholders will vote on the plan at a meeting on October 13.
GTC's share price, already having slumped on the poor recent results, instantly shed
over 8% to a two-year low on the Warsaw Stock Exchange after the announcement.
However, the shares recovered by the close on September 15 to reduce the loss to
around 3%, with investors apparently split on whether the time is right to start
buying CEE real estate again.
Read more here: http://www.bne.eu/content/story/bricks-mortar-interest-piquedcees-riskier-property-markets
7. Ukraine's egg king finds his bank, other businesses in financial hot water
Graham Stack in Berlin
October 8, 2014
VAB Bank, 90% controlled by Ukraine's leading agriculture oligarch Oleh
Bakhmatyuk, has said it is looking for a foreign investor to boost share capital, in a
move that smacks of desperation after the bank announced October 2 it had
defaulted on a $2m coupon payment.
VAB CEO Denis Maltsev said in a statement posted on the bank's website that as a
result of the events of 2014 in Crimea and the eastern Donbass region, “a significant
number of clients are no longer able to meet their obligations towards the bank, in
particular hard currency borrowers.” At the same time, he said, depositors have
withdrawn over UAH200bn (€12bn) in cash since the start of the year.
Maltsev said that the bank would recapitalise with the help of foreign investors and
"the obligatory support of the National Bank of Ukraine (NBU)," which would
"guarantee that the bank's meets its obligations under complete control of the NBU."
VAB failed to make a coupon payment of only $2m that was due on September 14.
On October 2, Maltsev blamed the default on the difficulties in finding the cash in
Ukraine, given the NBU's tight controls on the currency market, but said the bank
would find the cash with "a week or two," as quoted by newswires.
In order to shore up the hryvnia exchange rate, the NBU has introduced tight
controls on the currency market and restrictive policy regarding refinancing and
stabilization loans, with numerous smaller banks going out of business in recent
weeks.
Read more here: http://www.bne.eu/content/story/ukraines-egg-king-finds-hisbank-other-businesses-financial-hot-water
SE RESEARCH & COMMENT
8. Romania: Nuclearelectrica (SNN RO): (E)GSM resolutions – neutral
(company release)
Raiffeisen
October 8, 2014
* Shareholders approved a share capital increase by a maximum of 23.9 mn shares,
mainly to account for the subsidies from the state for the completion of Unit 2;
minority shareholders will have to pay RON 10 per share to avoid dilution.
* Shareholders have also approved the acquisition of advisory services in connection
with a possible purchase by SNN of some assets owned by Enel in Romania.
9. Romania: SIFs, Bucharest Stock Exchange (SIF1 RO, SIF2 RO, SIF3 RO,
SIF4 RO, SIF5 RO, BVB RO): Proposed reforms are now included in a draft
law instead of an ordinance – neutral (mfinante.ro)
Raiffeisen
October 8, 2014
* The Government has modified today the legal form which includes the proposed
reforms of the capital market from a draft ordinance to a draft law. In this case, the
Parliament’s approval is mandatory for its coming into force and from our experience
this procedure is usually lengthier.
Catalin Diaconu
10. Romgaz cut to HOLD, TP RON 39.5 - Good yields but subdued growth
Raiffeisen
October 8, 2014
* We incorporated weaker domestic gas price assumptions, triggered by a lower
price for industrial consumers and a delay of the liberalization process for
households, which reduced our profit estimates starting 2016e by more than 20%
versus our former forecasts.
* Even so, with the price increases that took place since the beginning of 2013, we
estimate 2014e net profit would be 50% higher yoy at RON 1.5 bn and remain close
to this level for the next three years (DY between 8% and 9% over the medium
term).
* Given that Romgaz’s pricing is mostly regulated, we decided to reduce the beta
over the medium term to reflect the lower volatility driven by pricing and thus the
utility-like features of Romgaz.
* We set our 12m TP at RON 39.5 (previously RON 39.0), the lower cost of equity
offsetting the weaker profit forecasts, but given the limited upside potential versus
the current market price we reduce our recommendation to “HOLD”.
We updated our estimates with weaker domestic gas price assumptions, triggered by
a lower price for industrial consumers and a delay of the liberalization process for
households. As such, starting 2016e, we see the net profit more than 20% lower
versus our former estimates (dated February 2014). Despite these struggles,
profitability wise, one cannot ignore that Romgaz is a different company from two
years ago. We estimate 2014e net profit would be 50% higher yoy at RON 1.5 bn
and for the next three years, assuming no major setbacks in pricing, net profit could
stay at around RON 1.5-1.6 bn (2014e-21e CAGR of 3.3%). With the adopted 75%
dividend pay-out policy this would translate into stable DY between 8% and 9% over
the medium term, lower however than our previous expectations when we were
seeing the yields to come closer to 12% starting 2016e. Given that Romgaz’s pricing
is mostly regulated, we decided to reduce the beta to 0.9 over the medium term to
reflect the lower volatility driven by pricing and thus the utility-like features of
Romgaz. In addition, we decreased the medium term risk free rates to accommodate
the drop in treasury bond yields. We set our 12m TP at RON 39.5 (previously RON
39.0), the lower cost of equity offsetting the weaker profit forecasts. Given the
limited upside potential versus the current market price we reduce our
recommendation to “HOLD”.
We assume a gradual alignment of the domestic gas price for non-households
towards European gas prices, and we see it averaging in the medium term EUR
24/MWh while in our previous update we were assuming the price would touch EUR
27/MWh. We also took into account the delay in the liberalization of the domestic gas
price for households to July 2021 (from end-2018), as recently adopted by the
Chamber of Deputies.
2Q 2014 results exceeded expectations with a lift in volumes delivered of 29% yoy,
backed by an increase in sales to the key suppliers in Romania and to the Bucharest
thermal heating provider, we suspect driven by the accumulation of stocks for
winter. Ca. 58% of Romgaz’s 2Q sales were at the price for households and thermal
heating suppliers. For FY 2014e we see a 4% yoy increase in volumes sold, partially
driven by sales from stock, while we expect production to remain flat yoy. We see
E&P result up 50% yoy in 2014e, propped by a 30% rise in the average realized
domestic gas price and despite losses from receivables of RON 176 mn in 1H.
For storage, given the regulated status of the business, we expect marginal
increases in EBT going forward (CAGR 3% over 2013-2020e). The “other” segment
outperformed strongly our expectations in 1H 2014, the EBT reaching RON 117 mn,
4x higher yoy. The surge came on the back of high other revenues, mostly penalties
for late payment, which we suspect are related to domestic gas sales. We do not
expect such strong performance to be sustainable.
Iuliana Mocanu
11. Rosatom risks
Greenpeace
October 7, 2014
Rosatom, the state nuclear corporation of Russia, is actively pursuing expansion
domestically and abroad, despite the decline of the nuclear industry globally.1
Rosatom is a questionable business partner, plagued by concerns over corruption,
the safety and quality control standards of its nuclear reactors, its competence at
building and operating nuclear plants, its model for financing projects, and concerns
over its ability to complete construction on time and on budget.
While Rosatom is the focus of this report, Greenpeace has campaigned extensively
against other nuclear companies. For years Greenpeace has identified the risks of
reactors from Areva in France, General Electric (GE) in the US, Atomic Energy of
Canada Limited (AECL) in Canada, Toshiba and Hitachi in Japan, various reactors in
South Korea, India, Turkey, Europe and elsewhere. In addition, Greenpeace takes on
the nuclear policies of countries that put their citizens at risk by developing and
promoting dangerous nuclear power.
Rosatom optimistically projects significant increases in foreign orders at a time when
nuclear power is outpaced and overpriced, and is in competition with modern, safe,
clean and affordable renewable energy alternatives, such as solar PV and wind
power.
Although Rosatom has recently broadened its foreign portfolio by bidding on projects
in well-established nuclear states, at the heart of its expansion dream is its new
business model of "Build-Own-Operate" (BOO). Under this model, Rosatom offers to
attend to all aspects of construction and operation of a nuclear project. Theoretically,
this model would allow a nation to become a nuclear state even though it has little to
no knowledge and infrastructure in place to support operation and oversight of a
nuclear reactor.
Close examination of Rosatom's track record shows the Build-Own-Operate model is
not an ideal arrangement for foreign clients. The concerns over Rosatom as a
business partner, as well as the risks embodied in its offer, under the model, to take
back spent nuclear fuel generated at its reactors in other countries raise serious red
flags for any country considering doing nuclear business with Rosatom.
In addition, not only does the model increase dependency on Rosatom to operate
nuclear reactors, it also increases dependency on imported uranium.2 Rather than
achieving energy independence and security, countries would be going in the
opposite direction.
In 1991, when it was created, the Russian Federation inherited the nuclear
programme of the former Soviet Union, which had placed the responsibility for both
civil and military programmes within the purview of the same agencies. This
inheritance brought with it a culture of secrecy and significant safety concerns. PostSoviet disorder resulted in corruption. Although Rosatom is a fairly new entity, it is
the successor agency to both Soviet and post-Soviet state nuclear agencies.
Some things undoubtedly remain unchanged. One of Rosatom's predecessor
agencies oversaw the worst nuclear disaster in world history. While Rosatom claims
to have learned from the Chernobyl catastrophe and improved the safety of its
reactors, it continues to operate Soviet-era reactors, and has completed construction
of three reactors that were started under the Soviet government. The safety of these
old reactors and reactor designs, as well as the safety of new designs, could be
compromised by the apparent and significant concerns with Rosatom about
corruption and quality control. Rosatom has also repeatedly failed to deliver its
reactor construction projects abroad on time and on budget, and has failed to meet
its own projections for expansion.
Although Rosatom receives significant financial backing from the Russian
government, financial analysts are already voicing scepticism3 as to whether
Rosatom could financially support its foreign expansion goals under the BOO model.
However, should other countries agree to binding nuclear contracts, similar to the
contract Hungary signed in April 2014 with this Russian state corporation, the
burden, financial risks and cost overruns for which Rosatom is known would be borne
by the foreign governments and taxpayers.
Further, although Rosatom's offer to take back and reprocess highly radioactive
spent fuel from its foreign reactors appears to offer a solution to the unsolvable
burden of nuclear waste, this is hardly a solution to the waste problem. There will
still be onsite risks since the radioactive waste must be cooled for years before it can
be transported. In addition, the transport of nuclear waste itself would put
communities along the route at risk, while the final reprocessing in Russia would
generate an even greater volume of radioactive wastes.
Reprocessing has been rejected in some nations, such as the US, due to the
increased risks of the proliferation of nuclear bombs from reactor-grade, but
weapons-usable plutonium. The Russian Federation claims the reprocessed waste
would be used for its fast- breeder reactor programme, not only has the programme
been a failure - as such programmes have been in every nation - but the Russian
government already has one of the largest stockpiles of reactor-grade, weaponsusable plutonium in the world.4 Rosatom's offer to reprocess spent foreign fuel
would only increase Russia's stockpile of dangerous plutonium for no apparent or
immediate use. Finally, Rosatom has secured a legislative loophole5 that would allow
it to ship the radioactive wastes generated by reprocessing back to the country of
origin - thus creating a problem that the countries that sign into a reprocessing deal
with Rosatom would likely be seeking to avoid.
In sum, Rosatom presents considerable and troubling problems as a potential
business partner, from finance to performance to significant safety concerns.
12. Turkey, the Kurds and Iraq: The Prize and Peril of Kirkuk
Stratfor
October 8, 2014
In June 1919, aboard an Allied warship en route to Paris, sat Damat Ferid Pasha, the
Grand Vizier of a crumbling Ottoman Empire. The elderly statesman, donning an
iconic red fez and boasting an impeccably groomed mustache, held in his hands a
memorandum that he was to present to the Allied powers at the Quai d'Orsay. The
negotiations on postwar reparations started five months earlier, but the Ottoman
delegation was prepared to make the most of its tardy invitation to the talks. As he
journeyed across the Mediterranean that summer toward the French shore, Damat
Ferid mentally rehearsed the list of demands he would make to the Allied powers
during his last-ditch effort to hold the empire together.
Read more here: http://www.stratfor.com/weekly/turkey-kurds-and-iraq-prize-andperil-kirkuk#axzz3FOXSrneP
SE OTHER NEWS
13. Bulgaria's GERB to Start Talks on New Gov't Monday
Novinite
October 8, 2014
Conservative GERB party, which won the early elections on October 5, will hold a
first round of negotiations on a next cabinet on Monday, October 13, party officials
say.

The center-right Citizens for European Development of Bulgaria (GERB)'s
first interlocutor will be the Bulgarian Socialist Party (BSP), which came second
though running neck-and-neck with the Movement for Rights and Freedoms (DPS).
Read more here:
http://www.novinite.com/articles/163911/Bulgaria's+GERB+to+Start+Talks+on+Ne
w+Gov't+Monday
14. Grey economy in Croatia much above European average
Dalje
October 9, 2015
Grey economy in Croatia amounts to 13 billion euros or about 28% of GDP, which is
around the average in eastern European countries but much above the European
average of 18.5%.
This is shown by a survey on the grey economy and its connection to electronic
payment conducted by Visa Europe, the consulting firm A.T. Kearney and expert
Friedrich Schneider.
Read more here: http://dalje.com/en-croatia/grey-economy-in-croatia-much-aboveeuropean-average/524342
15. LUKoil Seeks European Cash for Project Undercutting Gazprom's South
Stream
The Moscow Times
October 8, 2014
While the future of the gigantic South Stream natural gas pipeline from Russia
to Europe remains mired in uncertainty, an alternative project is gaining momentum.
LUKoil Overseas, the international subsidiary of Russia's largest private oil company,
has asked the European Bank for Reconstruction and Development (EBRD) for a $1
billion loan to further develop the Shah Deniz gas field in Azerbaijan, the Prime news
agency reported late Monday, citing EBRD materials.
Shah Deniz — Azerbaijan's largest gas field — aims to deliver gas from the Caspian
Sea to Turkey and Europe. When fully utilized, output is expected to rise from the
current 9 billion cubic meters per year to 25 billion cubic meters. Ten billion of this is
to be sent to Greece, Italy and Bulgaria via the Trans Adriatic Pipeline, work
on which is expected to start next year.
The $28 billion Shah Deniz project unites a consortium of European energy
companies, led by BP. LUKoil owns a 10 percent share.
Read more here: http://www.themoscowtimes.com/article/508575.html
16. Moldovan authorities fine 4 TV channels for re-broadcasting Russian
programs
TASS
October 8, 2014
Moldova’s authorities have on Tuesday fine to four local TV channels re-broadcasting
Russian programs over "anti-Ukrainian coverage of the armed conflict in eastern
Ukraine."
Read more here: http://en.itar-tass.com/world/753186
17. Montenegro Puts Leading Defense Company Up for Sale
Defence News
October 8, 2014
Montenegro’s government has decided to sell the country’s leading defense
company, state-owned Montenegro Defence Industry (Vojna Industrija Crne Gore).
The Montenegrin government’s Privatization and Capital Investment Council is
handling the privatization process. All bidders willing to acquire a 100 percent stake
in the firm are to submit offers by Oct. 15, the agency said in a statement.
Read more here:
http://www.defensenews.com/article/20141007/DEFREG01/310070038/MontenegroPuts-Leading-Defense-Company-Up-Sale
18. Romanian senator, former minister get jail sentences in Rompetrol
refinery stock manipulation
Romania Insider
October 8, 2014
The Bucharest Appeal Court recently sentenced Romanian journalist and senator
Sorin Rosca Stanescu to two years and four months in jail, no parole, in the
Rompetrol case, one of the most high profile trials in Romania. Former
communications minister Sorin Pantis was also sentenced to two years and eight
months in jail.
Read more here: http://www.romania-insider.com/romanian-senator-formerminister-get-jail-sentences-in-rompetrol-refinery-stock-manipulation/133031/
19. Russia's LUKOIL begins oil refinery startup in Romania
TASS
October 8, 2014
Russia’s LUKOIL company has begun the technological procedure to start a refinery
in Romania after its operation was halted by Romanian authorities, a company
source told TASS.
After the hearings over the company’s appeal on October 6, 2014, the arrest of the
company’s bank accounts and commercial reserves was suspended, and LUKOIL
began the procedure to start the Petrotel refinery, LUKOIL press secretary Vitaly
Matushkin told TASS.
Read more here: http://en.itar-tass.com/economy/753049
20. Serbia’s 23% Pile of Bad Loans Lures Distressed Debt Funds
Bloomberg
October 8, 2014
Buyers of distressed debt are being lured by the prospect that Serbia will clean up its
financial system amid mounting pressure from international creditors.
EOS Matrix, the Belgrade-based unit of Germany’s EOS, a company that began as a
Hamburg debt-collection service, said it’s in talks with more banking clients after
buying Serb non-performing corporate loans for 18 million euros ($23 million) in
December. The junk-rated former Yugoslav republic needs to convince the
International Monetary Fund that it’s working to stabilize the economy or risk being
shut out of debt markets, a watchdog appointed by parliament said last month.
Read more here: http://www.bloomberg.com/news/2014-10-07/serbia-s-23-badloans-lure-distressed-funds-east-europe-credit.html