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Policy & Regulation

Romania’s new tax regime jeopardises regional investment

The country’s sudden introduction of unfavourable fiscal terms risks derailing the BRUA pipeline and regional projects that plan to rely on it as an export route The country’s sudden introduction of unfavourable fiscal terms risks derailing the BRUA pipeline and regional projects that plan to rely on it as an export route.
By Silvia Favasuli 3 January 2019 Europe & Russia / Exploration & Production 0 33802
Exploration in the Black-Sea offshore Romania. (Petrom)

Romania’s sudden introduction of a new tax on energy companies may affect projects across Central and Eastern Europe and not just those in the country’s offshore sector.

The government adopted an emergency ordinance on the evening of 21 December that will impose a 2% tax on the turnover of energy companies operating in Romania, including gas producers and distributors, in addition to existing levies.

The ordinance also introduces a three-year cap on gas prices for household consumers, but this only affects current production and will not apply...