Romania to create joint energy investment fund from state company profits

Romania’s new government plans to repeal the current regulation requiring state-owned companies to distribute the majority of their annual profits as dividends, according to the official ruling strategy signed by the four-party coalition. Instead, profits generated by state-owned energy companies will be reinvested through a newly established energy investment fund, Hotnews.ro reported.

The current framework obliges state companies to allocate at least 90% of their profits to shareholders, a practice enforced through memoranda approved by previous governments. This approach, while boosting short-term state budget revenues, can limit the ability of key energy firms to finance long-term infrastructure and modernisation projects.

Under the new policy outlined in the ruling strategy, the government will channel retained earnings into a joint reinvestment vehicle aimed at supporting strategic energy projects. The fund will be formed specifically for state-owned energy companies and is expected to accelerate the development of infrastructure aligned with Romania’s energy transition objectives.

The government also plans broader structural reforms across state enterprises. According to the ruling document, administrative costs - including technical, economic, and administrative (TESA) expenses, as well as management costs - will be reduced by 20–30%. Operational expenses such as protocol spending and sponsorships will also be cut within the same range.

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