Litigation between the Romanian state and private investors takes new turn

Romanian state-controlled Air Traffic Services Administration ROMATSA’s accounts are currently blocked after Swedish-Romanian investors Viorel Micula and Ioan Micula recently obtained a foreclosure order on funds of up to EUR 85 million, from a Belgian court. ROMATSA is thus unable to receive money from the European Organization for the Safety of Air Navigation Eurocontrol for air navigation services. “The enforcement act refers to the amount claimed by the two businessmen from the Romanian state. ROMATSA has nothing to do in the litigation between the Romanian state and the Micula family,” reads a ROMATSA press release. The Romanian Finance Ministry confirmed that ROMATSA was not involved in this litigation. The two investors filed against the Romanian state in international courts, after the Government revoked a state aid scheme in 2005, which allowed the Miculas’ companies to pay no taxes on raw material imports and granted them other fiscal breaks. The arbitration tribunal in Washington ICSID ruled that the state’s decision violated the bilateral investment treaty between Romania and Sweden and ordered Romania to pay EUR 82 million worth of damages to the Miculas plus interest which increased the total amount to EUR 178 million. The European Commission, however, said that there were no legal grounds that Romania should pay any damages to the Miculas, as the state aid scheme was later deemed illegal. editor@romania-insider.com