KMG International considers that the decision taken by the High Court of Cassation and Justice today of maintaining the seizure established by Directorate for Investigating Organized Crime and Terrorism (DIICOT) in May 2016 is a useless measure, taking into consideration the fact that there is no risk regarding the disappearance, destruction or removal of the Group’s assets.

The value of the seizure claimed by DIICOT exceeds LEI 6 billion, double the level of LEI 3 billion claimed by the state institution as losses, the Group press release states.

“This decision could affect the medium and long term of KMG International development plans and future investment strategy in Romania, also the ability of the Group to attract additional financing”, it also states, and “the investment plan of the Group shows benefits for the Romanian economy: working places, contributions to the state budget, benefits for partners and suppliers”.

KMG International also insists that currently, the operations of the Group are carried out in normal conditions, and warns that the Group will continue to make the preparations to put Romania to trial in international court – Stockholm arbitration tribunals based on the Energy Charter Treaty and ICSID, the arbitral tribunal of the World Bank in Washington DC.

The press release also remembers that “the DIICOT decision relates to allegations said to have occurred in 2000-2003, long before the takeover in 2007 by the national oil and gas company of Kazakhstan, KazMunayGas, of the majority stake in The Rompetrol Group N.V. (now named KMG International N.V). Thus, invoking in 2016 the illegality of privatizations carried out in 1999 and 2000, raises from the very beginning obvious problems on the conventional, constitutional and legal nature, even only in relation to the principles of ownership and of ensuring the security of civil circuit”.