The Russian investor who controls RAFO Onesti, one of Romania’s largest refineries has decided to dismantle and sell it for scrap. He made this decision because of the company’s poor financial condition.

RAFO’s owner closed the refinery in 2008 for revamping, but they postponed the investments as they didn’t get the state aid they expected from Romanian authorities.

“Due to RAFO’s current financial situation I authorise the company’s general manager to start dismantling and selling the company’s assets and equipment,” reads and official statement signed by Russian businessman Iakov Goldovski, RAFO’s majority shareholder.

“The sale price will be determined based on similar second-hand equipment prices, but will not be lower than the current price for scrap in Romania.”

The Russian investor added that the money from the asset sales might be used to develop other industrial projects on the refinery’s platform.

Iakov Goldovski controls 96.5% of RAFO’s shares via a company registered in Austria, Petrochemical Holding. He officially took over the company in 2009. Before that, the company had been owned by a group of Romanian businessmen, who had bought it from the state in 2001.

RAFO was built in 1964. It can process 3.5 million tons of oil per year.

Only three of the ten oil refineries that Romania had 25 years ago, when the communist regime collapsed, are still working. They are all controlled by foreign groups.

editor@romania-insider.com