According to Romanian news portal gandul.ro, Rompetrol, which operates in oil refining, petrochemicals, and distribution in parts of Eastern Europe, is close to collapse. The stated reason is that Rompetrol top management — which includes representatives of Kazakhstan’s state energy company KazMunayGas (KMG), the majority owner of Rompetrol — prioritize personal interests over the economic good of the company. The allegations are serious.

KMG International, a group owned by Kazakhstan’s national oil and gas company KazMunayGas, acquired the Rompetrol brand in 2007, strengthening its position as a key player in the Black Sea and Mediterranean region. It currently owns 55% of Rompetrol, with Romania’s Ministry of Energy controlling just under 45%.

The Kazakhstani company is accused of assisting Russia, which itself is trying to avoid sanctions imposed by the European Union (EU). Gandul.ro claims that it’s possible to bring oil from Russia to be refined in Romania despite the embargo on Russian crude. Rompetrol CEO Ilyas Kuldzhanov has Russian citizenship, although he also registered Kazakh citizenship in Romania’s National Trade Register to avoid possible EU sanctions.

Gandul.ro published an open letter penned by some of the company’s employees, which they sent to the Kazakh Government.

The letter contains the following passages: “Dear Sirs, we are writing to you regarding current issues related to Rompetrol. At the beginning of this message, we apologize for using Google Translate to translate from Romanian to Russian and for remaining anonymous. We decided to remain anonymous because we fear reprisals from KMG management. We want to draw attention to the growing problems inside Rompetrol, because no one is interested in the future of the company. The company needs a radical change of management and new people with different perspectives at all levels, from the board of directors to the top management, with a vision in line with the goals.

In terms of management, first of all we should mention Ilyas Kuldzhanov, an extremely incompetent person with no experience in managing large companies, Baurzhan Nurgaliyev (Operations Director), who until recently ran a company selling elevators in Astana, Saken Shoshanov, Baurzhan Nugumanov and other members of management. Appointments to management positions are made on the basis of the ethnic origin of the clan. Most of the new managers in Romania and Kazakhstan have been hired without any competition or selection, and have no experience or knowledge of how the corporation should operate.

Note the price of oil and how diesel fuel was purchased in 2023 due to an emergency equipment shutdown at the Petromidia refinery. Why is this equipment not repairable? Why do accidents and explosions continue to occur? Because Rompetrol management is looking for contractors willing to pay commissions. We would like to inform you that similar messages will be sent to the Romanian authorities because the situation is critical.”

Rompetrol employees also create a disastrous picture of the company’s behavior. In the letter they ask Tokayev to check how components and electricity are purchased for the plant — questions that refer to expenditures of tens of millions of dollars. They also ask: “why at the last meeting of shareholders there was a conflict between representatives of the Romanian state and KMG?”

“We appeal to the President of Kazakhstan, the Prime Minister of Kazakhstan, the Minister of Energy, the heads of Samruk-Kazyna and the management of KMG with a request to take urgent measures to prevent the destruction of the company. It is critical that you accept that there are serious problems and understand that we are asking for help. We no longer have the possibility to work and see what happens. We want to inform you that similar messages will also be sent to the Romanian authorities, because the situation is extremely critical and the company needs change,” concluded the anonymous Rompetrol employees .

The website of KMG’s parent company has a section on values, which includes references to “Fairness. We act with integrity. We keep our word and do not accept double standards,” and also “Loyalty. We accept that the company’s interests come before our own.” Currently, KMG employs about 6,000 people and operates in 11 major markets. The company produces 25% of Kazakhstan’s crude oil, transports 56%, and refines 82%.

According to Reuters, Russia has asked Kazakhstan for 100,000 tons of gasoline, as Russian gasoline wholesalers hedge against possible fuel shortages due to Ukrainian drone attacks on Russian oil refineries. Reuters cited three people familiar with the matter.

“Sources say Moscow has asked Kazakhstan to stockpile an emergency reserve of 100,000 tonnes of petrol for deliveries to Russia. Arrangements have already been made to provide Kazakh petrol to Russia. Belarus is also ready to help the neighbouring country with fuel,” it reports.

However, Kazakhstan’s Ministry of Energy, through energy minister Shyngys Ilyasov, has not confirmed this information.

Due to Ukrainian drone attacks on Russian refineries in early 2024, output of oil products in Russia fell by almost 14%. The drone strikes hit notable refineries such as Rosneft’s Ryazan and Novokuibyshevsk complexes and Tatneft’s Taneko refinery. The authorities claim that there is no fuel shortage on the Russian domestic market and that there is enough gasoline in stock. Nevertheless, Russia has introduced a temporary restriction on the export of fuel outside the country — except to countries of the Eurasian Economic Union (EAEU).

According to Reuters estimates, as of April 5, Russia’s AI-92 gasoline reserves amount to 307,700 tons, AI-95 reserves were 58,000 tons, and diesel reserves were 435,300 tons.

Meanwhile, since the beginning of this year, in Kazakhstan has stopped 171 cases of illegal export of oil products, as reported by the State Revenue Committee. Thousands of liters of Kazakhstan’s subsidized gasoline were intended to be exported outside the country. Most of the shadow-economy exports were found at the Kazakh-Russian border. Currently, Kazakhstan has a ban on the export of certain types of petroleum products.