Liberty Galati, the Romanian subsidiary of Liberty Steel - part of GFG Alliance controlled by Indian businessman Sanjeev Gupta - urgently needs EUR 100 million to purchase the CO2 certificates that it sold last year, according to Ziarul Financiar quoting FT.

Under the ETS scheme operated by the European Union, Liberty Galati received some EUR 100 mln worth of CO2 certificates. However, the company sold them, planning to repurchase them from the market this April when it has to return to the EU the certificates corresponding to the previous year's CO2 emissions.  

An additional challenge for Liberty Galati is the sharp rise in the price of CO2 certificates in recent weeks. The Romanian plant is reportedly in talks with sister company Liberty Ostrava from the Czech Republic to obtain the certificates that the Czechs did not use.

The steel empire built by Sanjeev Gupta has been facing serious financial problems after the recent insolvency of its largest financier - Greensill Capital.

andrei@romania-insider.com

(Photo source: the company)