During the energy crisis in 2022 and 2023, the government took measures to ensure the safe provision of gas to households in line with the law, the Croatian government said on Saturday following media reports that MOL has initiated arbitration proceedings against Croatia over the regulated gas prices.

“The government can confirm that it has been notified about the new arbitration application submitted by MOL against the Republic of Croatia over the measures taken in September 2022 to address disruptions to the domestic energy market, in this case the gas market,” the Croatian government said in a press release.

The Office of the State Attorney-General (DORH) will represent Croatia in this case and will take all the necessary measures, in cooperation with other state agencies, to safeguard Croatia’s interests, the press release added.

The government recalled that during the energy crunch, it took the necessary measures to protect households and other protected consumers after an early warning of the crisis concerning gas provision in Croatia and ensure the security of gas supply based on the intervention plan on the security of gas supply.

At the time the crisis posed a risk to 1220,000 end-users and 9,000 consumers, such as schools, kindergartens and hospitals which could have been left without gas supplies due to sudden gas price hikes.

The government says it took the temporary measures to address the situation and make sure that gas supplies were provided to the users concerned.

Hungary’s MOL stated on Saturday it had initiated an arbitration process against Croatia over the measures which the government imposed on the gas market in 2022 and 2023 whereby INA was ordered to sell gas supplies to the state-run HEP power provider at prices below market prices.

“MOL confirms that it has launched the arbitration against the Republic of Croatia in a bid to offset the damage caused to us by Croatia’s measures imposed on the gas market in 2022 and 2023,” the Hungarian energy group stated in a press release.

These measures imposed an obligation on INA to sell gas supplies, produced in Croatia, to HEP below the market prices.

MOL did not provide any further information in its short press release.

MOL is the single largest shareholder in INA, holding 4,908,207 shares (49.1% ), while the Croatian state holds 4,483,552 shares (44.8%). Private and institutional shareholders hold 608,241 shares (6.1%).