Sale of State-Owned Shares at Romanian National Companies Prohibited

The Romanian Chamber of Deputies adopted, on Wednesday, the draft law regarding some measures for the protection of national interests in the economic activity. This law comes amid fears that, taking advantage of the crisis generated by COVID-19, certain economic giants could try to buy cheap strategic national companies in a precarious financial situation. 199 deputies voted “for”, 89 voted “against”, and three abstained.

The law regulates the establishment of measures for the protection of national interests in economic activity, determined by the economic negative effects generated by the COVID-19 epidemic.

For a period of two years from the date of entry into force of the law, the sales of state-owned shares in national companies and corporations, in banks, as well as in any other company in which the state has the quality of shareholder, regardless of the participation quota, is prohibited.

“For a period of two years, any operations regarding the alienation of the state-owned shares in the national companies and societies, as well as in the companies in which the state has the quality of shareholder, started before the entry into force of this law, shall be suspended. The provisions do not apply to post-privatization operations and operations specific to privatization in case the transfer of ownership over the state-owned participations has taken place.” according to the Law.