Lukoil to break into Polish market with Jet purchase

In 2002, while it was in a consortium with Rotch Energy, Lukoil tried to take over the Gdansk oil refinery only to have the transaction blocked by the Polish government due to a "political risk" related to the Russian company's entry onto the strategic fuel market. It seems, however, that the situation is different now. "There are no grounds for blocking the transaction," said the Deputy Economy Minister Piotr Naimski. "It is not a refinery but a chain of petrol stations, it is not a threat to our energy safety." Lukoil also does not anticipate any obstacles. "I cannot imagine that something like that could happen. But I will be sure when the transaction is finalized," declared Vladimir Yatrov, Lukoil Polska's media contact. According to analysts, Lukoil's entry on the domestic market could be a threat for the owners of small petrol stations, but it will only threaten the positions of bigger players if Lukoil decides to expand its network, which looks certain."Of course we will try to expand out network in Poland," declared Yatrov. "The acquired stations are just the beginning." Orlen spokesperson Dawid Piekarz, however, believes that the situation on the market will not change saying "until now we competed with ConocoPhilips and now we will compete with the Russian Lukoil." (Puls Biznesu, pp. 1, 11) E.B.