The Moscow Times reported that the Slovenian government said it will not sell its stake in Petrol Group to Gazprom after the gas giant's CEO, Mr Alexei Miller said he received a proposal to buy into the fuel retailer.

Mr Matej Lahovnik Slovenian Economic Minister said "The government is not selling and doesn't plan to sell its stake in Petrol. He said that I have met Miller recently in St. Petersburg, and we only discussed plans on the South Stream natural gas pipeline and not a word on Petrol."

According to Petrol's web site, the government indirectly controls 29% of Petrol, Slovenia's biggest energy provider, through two funds Kapitalska Druzba and Slovenska Odskodninska Druzba.

Speaking at the European Business Congress on the Italian island of Sardinia, Mr Miller said Gazprom had received a proposal to buy a stake in Petrol. Mr Lahovnik said "Rumors about selling the stake in Petrol just confirm the urgent need to appoint a new chief executive officer who will ensure the company's stability."

Gazprom is among several energy companies seeking to expand in southeastern Europe, where weakening economic growth and tumbling oil prices have driven down energy stocks. The company agreed last year to buy a controlling stake in Naftna Industrija Srbije of Serbia, where it plans to build a section of its South Stream pipeline.

Petrol, which has lost 50% of its value in 12 months has a market value of EUR 643 million. Mr Marko Kryzanowski Petrol CEO who resigned last week, denied reports last year that the company may be taken over saying it would be a big bite to swallow for any competitor."

(Sourced from The Moscow Times)