INA must now totally withdraw from Syria and today's decision legally protects the company's interest, Prime Minister Zoran Milanovic said at a government session.

"The job of the government as a promoter of Croatia's economic interests is to seek the protection of our companies' interests tomorrow, when the situation in Syria has stabilised, just as it is now respecting the decisions of the Council of the EU," said Milanovic.

The government's decision to implement the restrictive measures against Syria, as established by decision of the Council of the European Union, bans the purchase, import or transfer of crude oil and oil products from Syria to Croatia, the export of equipment and technology for the oil and gas industry to Syria, and the setting up of any joint companies in Syria for oil drilling, production and refining.

INA has a concession for oil and gas research and exploitation in Syria.

Today's government decision defines the legal foundation for the future use of the concession, so that INA will not lose the right to it, Economy Minister Radimir Cacic told reporters after the government session.

He said the consequences of the decision were serious and that it was adopted in consultation with INA.

INA's profit in 2011 was almost HRK 2 billion (approx. EUR 266.7 million) and most of it was linked to Syria, said Cacic.

With today's decision, Croatia incorporates into its legal system the Council of the EU Decision of December 1 which, among other things, bans the sale, purchase, transport or export of weapons and similar material that could be used for repression within Syria, restricts participation in infrastructure projects in Syria, bans the sale, purchase, transport or export of equipment and technology for the building of new power plants in Syria, and bans the financing of some companies, notably in the energy sector, in Syria.

INA said in a statement it would fully honour the government's decision and that after examining it, it would take the necessary steps to adjust its operations in Syria.

The company said it had been following developments in Syria for quite some time and that most of its employees had been withdrawn from there, while those remaining were not in danger.

INA is working on two locations in Syria, Hayan and Aphamia, the former being its most successful foreign concession.

So far, the company has returned more than half on its US$ 1.2 billion investment in Syria.

Following the EU's restrictions against Syria last September, in the wake of political unrest that began in March, INA reduced crude oil production there by 1,500 barrels a day, while in December it further reduced oil and natural gas production by 1,300 barrels of oil equivalent a day.

Also, INA has difficulty with non-payment from Syria. In normal circumstances, INA collected $50-70 million a month for the fuel produced there.