While observing the necessity of the company’s ongoing stable operations and Slovenia’s strategic interest relating to the provision of a stable natural gas supply for households and commercial customers, the Government asked the Slovenian Sovereign Holding to carry out all management activities necessary for a suitable amendment to the annual asset management plan as per the Slovenian Sovereign Holding Act in the shortest time possible.

The Petrol company sent a letter to the Slovenian Sovereign Holding (SDH), referring to the provision of Geoplin’s stable operations. Petrol holds a majority stake (74.28 per cent) in Geoplin, while the Republic of Slovenia holds 25.01 per cent. Petrol also sent a courtesy copy to the Government, calling on the preliminary findings of an external financial adviser and pointing out that Geoplin is exposed to serious liquidity and business risks.

When examining the relevant letter, the Government observed the difficulty and severity of the situation relating to the natural gas supply, the urgency of Geoplin’s ongoing stable operations and Slovenia’s strategic interest when ensuring a stable supply of natural gas to households and commercial customers.

Based on the foregoing, the Government assessed that deciding on Geoplin’s risks may exceed regular SDH management activities and that, irrespective of the autonomy and independence of SDH bodies, a clear preliminary statement by the Republic of Slovenia with regard to SDH further management conduct is necessary or at least beneficial for a suitable amendment to the annual management plan, which would procedurally enable a timely implementation of the proposed management activity. Despite the principle of independence, the Slovenian Sovereign Holding Act also governs the admissibility of communication between SDH and state authorities.

The Ordinance on state-owned assets management strategy defines Geoplin as an important investment (minimum share of the state in the investment is 25 per cent and one vote), i.e. an investment in which the Republic of Slovenia wishes to maintain key development factors in the country. The latter does not prevent the increase of the share above 25 per cent and one vote, which is particularly crucial at the time of the energy crisis and the natural gas supply to the citizens, companies and Slovenian business sector. To ensure legal certainty, such encroachment upon a company by the state will be notified to the European Commission as a state aid measure.

Source: Ministry of Finance

The Government determined priority transport services in rail transport

The Government adopted the decision, by means of which it established the occurrence of special circumstances due to the energy crisis causing disturbances in the economy and defined priority transport services in rail transport, which are necessary for supplying the Slovenian energy sector and stocks for commodity reserves in the Republic of Slovenia.

The crisis situation relating to the war in Ukraine triggered certain dynamic changes in the market, especially the change in goods flows and increases in energy and raw material prices, including a decline in the production activities of certain companies. The lack of materials and problems in supply chains were already evident in certain branches in 2021, but the situation further deteriorated due to the crisis in Ukraine, which is why great difficulties in the supply of energy and other raw materials are becoming more prominent.

To prevent the problems and disturbances looming in the supply of the business sector and households and to normalise the situation and prevent the occurrence of damage during the supply, it is necessary for the Government of the Republic of Slovenia to determine specific circumstances in rail transport as per Article 8 of the Railway Transport Act.

The Slovenian railway network is intended for mixed transport and is one of the most burdened railway networks with freight transport. As many as four priority freight corridors run through our network, i.e. the Mediterranean Corridor from Hodoš to Sežana or Koper, the Baltic-Adriatic Corridor connecting Šentilj with Sežana and further with Koper, the Western Balkan Corridor connecting Šentilj and Jesenice with Dobova, and the Amber Corridor connecting Hodoš and Koper. Some 90 per cent of international freight transport takes place in the Slovenian railway network. As the network is rather small, this means that the impact of operations of neighbouring railway networks can be felt across the entire network.

For the optimum operation of wagons that are necessary for servicing the domestic energy sector and strategic stock of the Republic of Slovenia, trains transporting these goods have to be granted priority irrespective of the railway undertaking.

According to the public railway infrastructure manager, SŽ – Infrastruktura, d.o.o., the measure will have no impact on the implementation of the mandatory public utility service of passenger transport, since this is the implementation of priority transport in rail freight transport. The relevant measure should also have no negative financial consequences for railway undertakings, as it is intended equally for all railway undertakings transporting the foregoing goods. Within the performance regime, all delays of trains, which will be the result of implementing priority transport services in rail transport, will be recorded accordingly by the public railway infrastructure manager. Passengers will also be given due notice.

Based on the Government’s adoption of the decision, the priority transport service in rail transport are thus defined.

Source: Ministry of Infrastructure