The Croatian government on Thursday took decisions paving the way for the completion of the process of entry of the Turkish-Dutch Yildirim Group into fertiliser manufacturer Petrokemija and strengthening the government's position by releasing it from possible financial and other obligations.

The government granted approval for signing an annex to the agreement on recapitalisation and restructuring of Petrokemija and for concluding an agreement on the transfer of the recapitalisation and restructuring agreement.

The government gave consent to its representative, the Restructuring and Sale Centre (CERP), to sign an agreement on the transfer of the Petrokemija recapitalisation and restructuring agreement with Terra Minetralna Gnojiva, INA, Prvo Plinarsko Drustvo (PPD), Yildirim Balkan Ferilizer, and Yildirim International Fertilizer.

Economy and Sustainable Development Minister Davor Filipovic said that the government was entering the final part of the process of ownership transfer, released from any future financial obligations, adding that the possibility of shares being sold to the government would be annulled.

He noted that there were no obligations due on the part of the government as a shareholder on the day of conclusion of the annex to the agreement, and that the investors and sponsors, namely INA and PPD, agreed to waive any action against the government as a shareholder.

Filipovic said that there had been various reports of potential disputes in the amount of up to €40 million, stressing that the annex to the agreement removed any such possibility.

The transfer of this agreement and the annex lay the ground for restarting production at Petrokemija and keeping the work force, the minister said.

The process of acquisition by Yildirim Group of the majority stake in Petrokemija held by Terra Mineralna Gnojiva, owned by PPD and INA, has been going on for months, which made the workers, investors and local politicians dissatisfied. They all demanded in recent days and weeks that the sale be completed so that the factory could continue operating and the workers get paid.

According to Filipovic, the government wants Petrokemija to continue production and keep the work force.