Energy, Estonia, Legislation, Oil

Chairman of the Board of VKG Priit Rohumaa said that the profitability of VKG's oil shale processing factories is affected both by the raw material price and the price of oil that affects the price of the finished product. "The price of oil shale bought from Eesti Energia Kaevandused is today 2.5 times higher than when oil price was similar in 2009," said Rohumaa.

Rohumaa complained that the paradox here is that the company cannot supply its factories from its own mine, because the state has limited the company's mining volume with 2.7 million tonnes a year and thus it has to buy the rest from the state-owned Eesti Energia for a very high price.

The decision concerns nearly 200 people employed by the concern. It is not yet known how many of them will be laid off since the company is looking for finding work in other production units for the employees.

VKG has over 2,300 employees.