Victor Grigorescu

Large and strategic energy investment projects make a huge contribution to a nation’s economic stability and energy security. Romania, with its natural resources and geopolitical position, has the opportunity to become a key player on the European and regional scene once the Neptun Deep project starts exploitation. Neptun Deep is the project of the largest technical and investment scale ever developed by us in the Black Sea continental shelf, with which we are taking a significant step towards strengthening national security not only for Romania, but also for Central Europe and the Balkans, at least. The project contributes to reducing Romania’s energy dependence on gas imports, especially from unstable external sources such as Russia. This is all the more important in the current geopolitical context, marked by the long-running conflict in Ukraine and the tensions in the Republic of Moldova, generated by the referendum on EU accession, tensions built also on the back of high electricity and gas prices.

But without political stability and fiscal predictability, it is not possible! Such strategic projects cannot be successfully implemented in an environment characterised by legislative uncertainty. The regulatory framework must be transparent, clear and offer long-term guarantees to investors, both Romanian and foreign. Let us not forget that, first and foremost, the promoters of the Black Sea project are companies listed on the Bucharest stock exchange in which a significant number of Romanian citizens have invested, either directly or through private pension funds under Pillar 2.

Legitimate legislative changes affecting the project should be put in place following a genuine consultation process, in co-operation with all stakeholders – government, companies, and other interested partners. This ensures not only an efficient implementation of new measures, but also a clear understanding by investors of the risks and opportunities. Otherwise, key investments risk migrating to other countries in the region or to other corners of the globe where public-private partnerships have value beyond declarations, where tax regimes are more attractive and stable. Romania already has examples of failures in attracting strategic investment, such as the lost opportunity to host battery giga-factories or new car factories, which have shifted to countries with more favourable legislative and fiscal frameworks. It is vital that we learn from these mistakes and ensure that projects of paramount importance receive adequate state support.

The frequent changes, announced or unannounced, in fiscal regulations and the lack of capacity of institutions to provide a convincing response on key issues such as environmental protection considerations are a growing vulnerability for the Romanian energy sector. Large-scale projects, including the one in the Black Sea, risk becoming increasingly risky for investors. The volatility we were talking about may lead to delays in implementation or even the abandonment of projects, ultimately to the detriment of all Romanian citizens.

The conflict in Ukraine has highlighted Europe’s vulnerabilities in terms of energy security, vulnerabilities that have been directly translated into the political arena through complex operations of electoral manipulation and exploitation of historical tensions. Investments in new indigenous energy sources are more important than ever and Neptun Deep can play a vital role not only for Romania, but also for all the countries in the region which depend on Russian gas to supply their industrial sector or domestic consumers. It would be a mistake to see our security in isolation from that of our neighbours!

Projects such as Neptun Deep contribute to macroeconomic stability, increase gross domestic product and attract new investment in related areas. The revenues from the exploitation of gas from the Black Sea will strengthen the state budget, allowing Romania to reduce its budget deficit and invest in other strategic projects.

Thus, political stability, regulatory clarity and a predictable fiscal regime become the basis for attracting and maintaining major strategic investments, which contribute to economic growth and energy security for Romania and the region.