Romanian energy sell-outs promising

ISTANBUL- Hürriyet Daily News

Romanian President Traian Basescu (L) and TOBB head Rifat Hisarcıklıoğlu gesture during a press meeting in Istanbul. Hürriyet photo

The Romanian president has called on Turkish energy firms yesterday to participate in the privatization of the country’s state-owned Transgaz, one of six firms taking part in the Nabucco consortium, the planned gas bridge from Asia to Europe via Turkey.

“Turkish firms should take part in Romania’s privatization projects such as Transgaz,” said Romanian President Traian Basescu speaking at the Turkish-Romanian Business Forum of Foreign Economic Relations Board of Turkey (DEİK) in Istanbul.

Basescu said Turkey and Romania should turn their strategic partnership agreement signed by the two countries Dec. 12 into an “action plan.” Romania has launched an ambitious privatization drive that aims to list minority stakes in state-owned energy and transport companies under an International Monetary Fund-led aid deal worth 5.4 billion euros, according to Reuters. The Romanian government said it planned to sell minority stakes in Transelectrica along with Transgaz by the end of this year.

However, the president’s invitation might remain unfulfilled as big Turkish companies have been facing financing difficulties in local projects recently.

Privatizations in Turkey
The Turkish government’s bid to sell electricity distribution grids nationwide has turned into a failure as most of the tender-winners have not managed to make payments yet. Separately, Turkey’s energy regulator has started to return the application by private firms applying to buy 4 million cubic meters of gas from Russia’s Gazprom.

“Custom fees at Romanian custom gates should be dropped for Turkish companies,” said Hayati Yazıcı, Turkey’s Customs and Trade Minister. Both countries should ease trade between each other, Yazıcı said.