By IRINA VILCU and ANDRA TIMU

Romania seeks to complete the sale of a stake in the country’s biggest refinery by the middle of next year, with the majority owner, KMG International, so far emerging as the only potential buyer, Energy Minister Andrei Gerea said.

The government wants to raise at least $200 million in the sale of 26.7% in Rompetrol Rafinare SA and it’s conducting the auction to conform to European Union rules after signing a memorandum with KMG in 2013 on the sale of refinery shares.

The cabinet also plans to help KMG set up an investment fund to finance projects in Romania in 9 months, Gerea said in an interview in Bucharest on Monday. The state plans to keep an 18% stake in the refinery after the auction.

“KMG is very interested in expanding their business in Romania and creating the investment fund,” Gerea said.

KMG, owned by KazMunayGas National Co., wants to set up the fund with an aim to invest $1 billion over seven years into energy projects, such as its retail network, a power plant and exploration of a field in Focsani in the country’s east, senior vice president Azamat Zhangulov said in an interview on July 3.