Rafineria Gdanska fate to be decided by next government

The Cabinet yesterday postponed a decision on the sale of a 75% stake in Rafineria Gdanska (RG) to Rotch Energy, thereby leaving the new government to deal with the matter. Analysts suggest that the outgoing ministers were keen to avoid accusations of taking controversial and irreversible action just before leaving their posts. Commenting on the proposed sale, officials from the Democratic Left Alliance (SLD), which is preparing to form the new government, have indicated they would prefer to see a merger between RG and PKN Orlen that would create a State-controlled fuel giant. "Gdanska cannot survive alone," said Wieslaw Kaczmarek, a leading candidate to be the next Treasury Minister. He added, however, that it might be possible to continue the talks with Rotch Energy. Meanwhile, Rotch took another major step toward the purchase of the RG stake by obtaining the financial guarantees required by Nafta Polska, the State agency in charge of the oil sector privatization. Rotch's backer for its purchase and subsequent investment is an intern ational grouping that includes the World Bank's International Finance Corporation, American International Group Inc (AIG), Edison Capital, and ABN Amro Holding NV. (Rzeczpospolita, p. B1; Reuters) M.K.