Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Yukos Tiff Won't Hit Orlen

WARSAW -- Poland's PKN Orlen said Monday that a management tussle at bankrupt Yukos was unlikely to influence Orlen's agreed purchase of Lithuanian refinery Mazeikiu.

Yukos receiver Eduard Rebgun on Friday fired the management of its foreign subsidiary, Dutch-based Yukos Finance, which together with the Lithuanian government agreed in May to sell Mazeikiu to Orlen in a $2.6 billion deal.

"The agreement was signed and is in force," Orlen spokesman Dawid Piekarz said. "We don't believe that this should have any impact."

He said Orlen was now waiting for approval of the sale by EU competition authorities before the expected completion of the deal in early 2007.

Interfax quoted Rebgun as saying he dismissed the managers of the Dutch subsidiary because they had failed to involve him in foreign asset sales. Rebgun may hope to seize the Lithuanian refinery as part of the bankruptcy because Orlen says it has an option to abandon the purchase if Mazeikiu's value drops significantly by the end of the year.

Analysts have predicted the Poles will struggle to secure stable oil supplies from Russian firms. Their predictions were given credence at the end of July when Russian crude deliveries stopped due to a pipeline leak.

"PKN Orlen wishes to express its hope that there are not any non-business related reasons behind the reported pipeline failure," PKN President Igor Chalupiec said Friday.