The statement on the government's position regarding MOL's offer for the purchase of shares held by INA's small shareholders was issued by the Economy Ministry to provide information to investors in line with the Act on the Takeover of Companies and the Capital Market Act.

The government's positions are defined in three points, and the first recalls that "in the case of ownership and management of the INA d.d. company, the Croatian government is one of the contractual sides whose position and status is defined by the Shareholders' Agreement for INA-Industrija Nafte d.d., signed on 17 July 2003."

"The Croatian government is responsible for the accomplishment of economic and political goals of the state. Accordingly, the government does not waive the right and possibility to adopt other legal and institutional solutions regarding the status of the contractual sides, as well as regarding the protection of its strategic interests in the energy sector."

"The Croatian government will comply with and implement all formal agreements and contracts, as well as informal agreements with all investors whose goals and plans coincide with the government's goals in terms of protection of ownership, investment and management in the energy sector," reads the last, final point of the government's position.

The Hungarian oil and gas operator MOL announced at a news conference on December 2 and via the Zagreb Stock Exchange on December 3 its offer for the purchase of shares from the small shareholders in INA at the price of HRK 2,800 per share, the price at which MOL bought INA's shares at a voluntary public auction in 2008, which is 60 percent higher than the trading price of INA shares on the Zagreb Stock Exchange last week.

MOL currently holds 47.155 percent of INA's stock, the Croatian government holds a 44.836 percent stake, and institutional and private investors hold 8.009 percent of the company shares to which MOL's offer refers.

After MOL's announcement, the agency for the supervision of financial services HANFA suspended trading in INA shares on the Zagreb Stock Exchange until the public was correctly informed about the circumstances of MOL's offer. The suspension is still in force.

Last Tuesday, HANFA received written requests for an opinion from the Central Depository and Clearing Company and MOL regarding certain aspects of the transactions from MOL's statement on the company's plan to make a private offer for the purpose of acquiring more INA shares, and HANFA is expected to state its position on the matter.

Prime Minister Jadranka Kosor told reporters this evening that the government was close to a solution regarding MOL's offer which she said would be in line with Croatia's strategic interests.

"We, who have worked on that issue for some time, believe that we are close to a solution and that it will be in line with Croatia's strategic interests," Kosor told reporters before a special session of the Croatian parliament.