There is still room for optimism in Romania, as the economy is seeing continued investments across a number of sectors, with the energy transition and renewables, automotive, defense, and infrastructure projects driving growth, according to Kinstellar Partner Iustinian Captariu.
“High interest rates, inflation, energy prices, the war in Ukraine, and the local political landscape all pose several challenges and generate uncertainty, but these do not seem to significantly discourage investors just yet,” Captariu points out.
“The energy sector, renewable energy in particular, as well as the ongoing energy transition effort, has been a driver of growth in the past few years," he continues. "We have witnessed a diverse range of investors from across the globe seeking to place their bets on the future of Romania's renewables industry, with notable transactions such as the 710-megawatt photovoltaic cluster recently traded between Jantzen Renewables and OMV Petrom.”
Moreover, Captariu shares that the “nuclear sector is experiencing significant development as well, with the potential construction of new reactors and the refurbishment of existing ones, although things here are moving at their own pace, which is normal for the industry”. According to him, "these energy-sector trends have been keeping the markets, as well as lawyers, pretty busy.” Additionally, he reports that the automotive sector has been experiencing new investments as well: “this is especially the case with battery manufacturing and charging infrastructure, which still has a lot of room to grow” he explains.
On a separate note, Captariu shares that the “defense sector has also witnessed an upswing, with a number of contracts for strengthening Europe’s eastern flank. These involve government-to-government contracts and also local tenders that have recently been launched."
In addition, Captariu also stresses that the country is heavily invested in the renewal of its infrastructure: "Romania has seen a number of infrastructure projects pick up, such as airports, terminals, and highways, all of which bring about opportunities for our economy, as well as legal work.”
And finally, another cause for lawyers to be optimistic in Romania: foreign direct investments are becoming, according to Captariu, a “focus for lawyers, as an increasing number of transactions require notification and approval. The shifting legislative landscape and the rise of FDI regulation draw on more work for legal practitioners,” he shares.