ZAGREB, May 26, 2020 - The INA oil company and the JANAF oil pipeline operator on Tuesday commented on an article in Nacional weekly which claims it obtained a secret memorandum between the two companies whereby the prime minister allows the export of Croatian oil to Hungary and that the document undermines national interests.

The INA-JANAF memorandum of understanding is a non-binding document signed on 21 August 2018 with the goal of creating prerequisites for the adoption of business decisions which ensure greater profitability and the viability of INA's refining and thereby the whole company, INA said in a press release in response to the Nacional article.

JANAF responded too, saying in a press release that its management was planning and undertaking business activities aimed at increasing the company's revenue and profit as well as reducing and consolidating expenses.

INA explained the memorandum also in the context of its INA R&M New Direction 2023 program, which was launched in 2018 and which envisages concentrating oil processing in the Rijeka refinery and transforming the Sisak location into an industrial hub.

INA said the memorandum envisaged a better optimization of oil transport between JANAF's Sisak terminal and INA's Sisak refinery to enable selling oil at market prices and generating greater economic value. Oil from Croatian fields is processed at the Rijeka refinery and part of it is sold at market prices, INA said, adding that the Rijeka refinery processed more effectively 20% more oil than before and that the quantities covered Croatia's requirements.