Romania: EU investments now also covered by FDI regime

The Romanian Parliament aims to bring significant changes to the FDI regime introduced through Emergency Government Ordinance No. 46 of 18 April 2022. While the now tabled draft bill is still subject to peer review until being promulgated and entering into force, it is expected to go live within no more than one month.

We summarise the key changes below.

EU investments

By far the most important change is that EU investments will now also be covered by the Romanian FDI regime. Thus, investments by EU investors in sensitive sectors will need to be screened.

Investments posing risks can be reversed

A new sanction will be introduced on top of the existing possibility to impose monetary fines of up to 10 % of total worldwide turnover. Investments implemented prior to the approval can be annulled and reversed at the proposal of the FDI Screening Commission, provided they trigger risks to national security or EU projects and programmes

Screening fee

FDI filings will be subject to a screening fee, amounting to 0.1 % of the investment value. There is, however, no clear definition of how this value is calculated and, thus, clarifications via secondary legislation would be more than welcome.

Transitory rules and timeline

It is now clarified that the new FDI regime will become effective once the FDI Screening Commission becomes operational. Filings submitted in the meantime will be subject to the previous regime.

The RCC has also published a first draft regulation on its website governing the functioning of the FDI Screening Commission (available here), subject to public consultation until 10 July 2022.

author: Georgiana Bădescu and Cristiana Manea