Legal & Regulatory
Nynas AB announced May 12 that Petroleos de Venezuela S.A. sold a 35 percent stake in the company and that the United States lifted sanctions against Nynas as a result of the divestment.
Months after fire swept through parts of a local Lubrizol factory, citizens in the northern France town of Rouen are complaining of strong odors still whiffing around, an issue the company said it is taking a variety of actions to combat.
The European Commission is once again considering a proposal to bring lubricants into its Excise Movement and Control System, and the Union of the European Lubricants Industry is once again working to block the bid.
Quality assurance organization Verification of Lubricant Specifications announced this week that it upheld a complaint of false 2018 performance claims for Gulf Formula CX 5W-30 engine oil – claims that the lubricant marketer had removed by the time it was contacted by VLS.
The European Commission seems to be determined to uphold the semestral quota on duty-free API Group II base oil imports, and projects that far less than the 200,000-metric ton semestral amount will used up by June. This forecast has raised eyebrows in the market.
Nynas AB cleared a significant hurdle in its reorganization efforts last week after the United States Office of Foreign Asset Control confirmed that a proposed change in the company’s ownership structure would exempt it from sanctions that it says have undermined its profitability. Nynas also said it will file to extend its reorganization now that its initial three-month reorganization period ended.
Lubrizol will vigorously defend itself against charges of lax safety standards and pollution filed by French prosecutors last week, a company spokesperson told Lube Report Monday afternoon.
It is unlikely that the European Commission will review the new duty-free API Group II base oil import quota that it adopted late last year, according to industry sources. The quota has caused confusion around the industry regarding its enforcement and led to increased costs for companies.
The United Kingdom formally left the European Union on Jan. 31, triggering a transition period until the end of this year. The U.K. lubricant industry expects business as usual until late this year, when the countrys possible divergence from EU regulations could impact the industry.
Nynas AB disclosed details and the next steps surrounding the companys reorganization efforts last week, including an attempt to change its ownership structure to escape sanctions that have undermined its profitability for over two years.