Romanian President Salutes Investments In Rafo Oil Refinery In Times Of Economic Crisis

Basescu stressed the company’s new management adopted a fair approach and managed to pay Rafo’s debts to the state budget.

„As politician, I have been Rafo’s friend and foe, but now, I am ready to become Rafo’s friend again, „Basescu said, adding Rafo’s new management has adopted a fair approach and has managed to pay over EUR200 million in debts to the state budget.

„Carrying on investments in times of crisis is a very good thing and a step forward,” Basescu told Rafo officials.

In turn, Rafo general manager, Iacov Goldovskiy, told Basescu that investments in the company’s petrochemical platform would go on and Rafo would turn into a modern refinery.

„Rafinorul” union leader, Ion Marian, and Rafo employees asked Basescu to support the company in getting state guarantees to further contract a loan and carry on upgrade works started in 2008.

Rafo employes 1,300 people and went bankrupt in April 2004, with large debt loads to the state budget.

In the first half of 2008, Rafo halted activities and started an upgrade program with investments of EUR330 million that will allow Rafo to process three million tons of crude oil per year. Rafo targets to resume activities in the fourth quarter of 2009 and to hire 3,000 people.

According to data released in June 2009, Rafo is 35.98% owned by Dutch-based Calder International, 31.87% owned by Petrochemical Holding, and 20.98% owned by London-based Balkan Petroleum Limited.

Basescu’s schedule also includes visits at airplane maker Aerostar Bacau and „Grigore Cobalcescu” College in Moinesti.