BANJA LUKA, Bosnia-Hercegovina (AFX) - Russian company Zarubezneft has agreed to acquire two state-owned Bosnian Serb refineries for 121 mln eur, the government said.
'The contract is worth 121 million euros' Aleksandra Vukasinovic of the economic ministry told Agence France-Presse, adding that the Russian company would invest another 849 mln eur in the project.
Vukasinovic said that under the agreement, to be signed on Feb 2, Zarubezneft would build new facilities and reconstruct run-down refineries.
In December, the Bosnian Serb parliament approved the sale of the government's majority stakes in a petroleum refinery in the northern town of Bosanski Brod and an oil refinery in northeastern Modrica.
The government's stakes in the Bosanski Brod and Modrica refineries amounted to 65 pct and 62.3 pct respectively.
In the deal, Zarubezneft also agreed to pay 18 months in unpaid wages to the employees of the two refineries.
Before the signing of the contract, Zarubezneft also expected the Bosnian government to authorise it to sell petrol with high sulphur levels on the country's market.
The Bosanski Brod refinery's maximum capacity is up to 1.5 mln tonnes of crude oil per year.
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