Re: Slovnaft asks ministry for help, Flash News, September 26, 2005
This article indicates that Slovnaft is no more than a refiner and retailer, dependent on deals made by and between governments. However, Slovnaft is no longer under the control of the Slovak government, and did in fact charge for its product more than the Slovak government thought reasonable, and the government fined the company.
Slovnaft and Slovakia are not one and the same thing, so the company cannot enforce a deal between Slovakia and Russia, unless the Slovak government issued guarantees to Slovnaft, in which case it could sue the Slovak government.
Whatever the case may be, it looks as though Slovnaft is no more than an [privatized] entity rendering the service of refining and distributing [retailing] oil due to an advantage from the past.
Perhaps Slovnaft should set up a department manned with people who know how to deal on the spot market and how to use instruments such as futures and options, and another one manned with people who can advise on which [oil] consortium could be joined. In a nutshell, I wonder if Slovakia needs a Slovnaft if the latter cannot come up with reasonably priced goods on its own.
3. Oct 2005 at 0:00