ECONOMY MINISTRY ON PETROKEMIJA'S PROBLEMS

ZAGREB, Jan 16 (Hina) - In the midst of a gas supply crisis in the Kutina-based artificial fertiliser factory "Petrokemija", the Croatian Economy Ministry issued a statement on Wednesday saying that the factory had refused to sign a long-term agreement with the INA oil company, but was satisfied with annual contracts by which INA guaranteed to meet 70% of the factory's needs, but not during the winter. During winter months, INA ha? the right to decrease the supply of gas to the minimum, if doing so is necessary to maintain the security of the gas system. Petrokemija knew this and signed contracts to that effect, the Ministry said, adding that INA had guaranteed the supply of 350 million cubic metres of gas, and the difference to approximately 500 million cubic metres would be delivered in accordance with the capacity of the gas system. The Economy Ministry recalled that Petrokemija had been granted the right to freely set prices, as well as that 360 million kuna of its debt to INA had been written off. It also reminded about provisions regulating the import of artificial fertilisers. The Ministry's statement conveyed conclusions from a meeting between Economy Minister Goranko Fizulic and the leadership of Petrokemija, INA and the largest gas consumers, held early this week, at which it was stated that at the moment there were no conditions for Petrokemija's work. The factory can resume work as soon as the temperatures rise. (hina) lml sb