The Bosnia and Herzegovina government said that it will sell majority stakes in the country’s two oil refineries and a petrol retailer to the Russian state-owned oil company Zarubezhneft for a total of EUR979 million, local media reports.
The country’s premier has signed an agreement for the sale of the Brod and Modrica refineries with representatives of the Russian company NeftegazlnCor, an affiliate of Zarubezhneft.
Zarubezhnefy will pay EUR42 million for 80% of Bosnia’s sole fuel-producing refinery Brod, EUR67 million for 75.6% of the motor-oils and paraffin maker Modrica and EUR10 million for 80% of fuel retailer Petrol.
The Russian company is also going to invest EUR59 million in a railway track between the two refineries and raise Brod’s annual processing capacity to 4.2 million tones of crude oil, Modrica’s output to 130,000 tonnes per year and Petrol’s annual sales to 2,500 tonnes.