Milanovic said this at the start of today's government session, commenting on media headlines that MOL was asking urgent negotiations on a new stakeholders' agreement in INA and that the Hungarian company was prepared to make concessions in order to gain full ownership control over INA.

The Poslovni Dnevnik business daily reported today that MOL was asking the Croatian government to urgently resolve co-ownership relations in INA. According to the daily, MOL sent a letter to the Croatian government last week asking that official negotiations be launched and new contractual relations be defined. According to the daily, the negotiations should start by the end of May and MOL is prepared to make concessions in exchange for full ownership control over INA.

Milanovic said that in agreement with stakeholders, the budget revision included a share of INA's profit and that money will go towards development projects.

"The Hungarians want to negotiate, of course we are talking this entire time, but talks are not binding for anyone as no formal agreement has been reached nor is anyone authorised to assume any obligations on behalf of the government and the state," the PM said.

He added that in this case there are some difficult circumstances over a trial against former prime minister Ivo Sanader pertaining to irregularities in agreements on transfer of stocks and INA's gas business. "This is a huge burden," Milanovic said adding that neither he nor his associations could run from it.

"We have a huge burden, I don't know what the court will rule. The ruling was handed town in the first instance proceedings," the PM said, underlining that at the same time INA must continue its operations and make profit.

We have to decide what to do with 45% of the stocks we own, what rights we have and all of this is a subject for talks and possibly negotiations, Milanovic said.

"No matter how big burden the current situation is or how limiting it is for us, it does not mean we have the right to be paralysed and act as if we were not owners and like somebody who can't do anything and must wait for the court to hand down the ruling. We have to see if the other side is possibly prepared to make some rational corrections, concessions. At this moment I cannot say this," Milanovic said adding he decided to speak because the public had been traumatized by odd and unusual moves regarding INA over the past five or six years.

We also have INA employees who are protesting, the PM said adding that he understood why they were protesting today. "It is their right. Everybody is fighting for their interests and for which they believe are their rights," the PM said.