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Energy bills under scrutiny

Since January 1, 2021, when the energy market was completely liberalized, chaos has been reigning in Romania, and that has already become the normal. In the beginning, people were promised a competitive energy price, and were offered, in some cases only in theory, the opportunity to choose the supplier and offer that would best meet their needs, at a competitive price. Its just that, insufficiently prepared, this liberalization has been more trouble than help, and the Romanian citizens have been forced, among other things, to wait sometimes even months for an invoice to arrive at their home, which, in addition, was ridiculously high.

The situation got even more complicated with Russias invasion of Ukraine, this time the entire European market being deeply shaken. Romania was no exception. For better or for worse, in the last few months, things in the country had taken a path of quasi-normality. The changes made to the most recent government ordinance regarding energy price caps are now, however, once again causing delays in the arrival of bills. The suppliers say that they did not have time to modify the computer programs for classifying consumers in the categories that benefit from price reductions, so that the population may have to pay only once, and only towards the end of the year, the bill for two or three months consumption.

Meanwhile, the National Authority for Consumer Protection kept carrying out controls, after registering a big number of complaints about how energy bills are calculated. At the hearings of the Parliamentary Commission inquiring into the causes of the substantial increase in electricity and natural gas prices, the president of the National Authority for Consumer Protection, Claudiu Dolot, stated that, based on reports, 92 companies were checked in September. Irregularities were found with 32 of them. The most serious concern non-compliance with contractual clauses, the provisions being changed unilaterally by suppliers only three months after signing the documents. There are over 900 registered complaints on this issue!

Representatives of Hidroelectrica and Romgaz, the largest producers of electricity and natural gas in Romania, will be invited to the next meeting of the Parliamentary Commission of Inquiry. As for the leadership of Nuclearelectrica, the only producer of nuclear energy in the country, it has announced that unit 3 of the Cernavodă Plant (south-east) will be completed in 2030, when the company will be able to ensure over 30% of the consumption needs at national level. But, there are still seven years to wait until we get there. (MI)

7 October 2022
October 5, 2022

FIREWOOD The prices of firewood and
wood derivatives used for heating will be capped in Romania until the end of
March 2023. A draft emergency order in this respect is being discussed by the
Cabinet today. Beneficiaries will include individuals, public and private
education institutions, social service providers, local authorities and places
of worship. The measure is intended to help Romanians cope this winter with the
skyrocketing fuel, energy and natural gas prices. Also today the government is
scheduled to endorse the 2030 National Forest Strategy.

ENERGY A Pact for Clean Energy
Resilience was launched in Romania on Tuesday. The initiative came from Smart
Energy Association and is an invitation to the authorities and private sector
to implement programmes and awareness raising campaigns regarding the need to
cut energy consumption and to use clean energy sources. The president of the
Association, Dumitru Chisăliţă, says cutting consumption should be achieved not
through restrictive measures, but rather by improving efficiency. The
Association also released a guideline for authorities, comprising energy saving
solutions.

SCHENGEN The European Parliament discusses in Strasbourg today
Romania’s and Bulgaria’s Schengen accession. MEPs are expected to call for
the Schengen passport-free travel area to be completed swiftly by extending it
to all EU member states who wish to participate, with a resolution in this
respect to be voted on in the next plenary session. Another topic on the
European Parliament’s agenda concerns the mobilisation of Russian reserve
troops, the illegal referendums in Ukrainian occupied regions and the nuclear
threats voiced by the president of the Russian Federation, Vladimir Putin. MEPs
will request firm responses from member states to Russia’s preparations to
annex Ukrainian territories and to step up military actions.

CEREMONY The Royal House of Romania last night hosted a ceremony
devoted to the Romanian-British partnership and the rule of Charles III. In her
address, the Custodian of the Crown of Romania, Margareta, sent a message of
hope and confidence to Britain’s new sovereign, King Charles III. In turn, the
British Ambassador to Bucharest, Andrew Noble, pointed out that the British
nationals who live in and love Romania are blessed to have a monarch who knows
Romania so well.

UKRAINE The president of Ukraine
Volodymyr Zelenskyy announced fast and powerful progress for his army in the
south of the country, where scores of localities have been reclaimed this week
from the Russian troops. According to AFP, in his daily address
posted on social networks, Zelenskyy promised that the Ukrainian troops would
not stop and that it was only a matter of time until the Russians would be
driven out of the entire Ukrainian territory. On the other hand, the Ukrainian
president welcomed India’s support for the sovereignty and territorial integrity
of Ukraine, voiced during a telephone call with PM Narendra Modi. Previously, Kyiv
had criticised New Delhi over its neutrality. Meanwhile, in Brussels, EU
countries Wednesday reached a political agreement on the implementation of an
8th package of sanctions against Russia, this one in response to the illegal
annexation of 4 Ukrainian regions.

IAEA The director general of the International Atomic Energy Agency (IAEA),
Rafael Grossi, will travel to Kyiv and then to Moscow this week to discuss a
protection zone around the Ukrainian nuclear plant at Zaporizhzhya. Rafael
Grossi will carry on consultations to have the mechanism in place as soon as
possible, the Agency said in a news release. The nuclear power plant in Zaporizhzhya,
the largest in Europe, is occupied by Russian forces, but is still operated by
Ukrainian personnel. Russia and Ukraine have accused each other of shelling the
plant area. (AMP)

5 October 2022
October 1, 2022 UPDATE

Ukraine — The NATO Secretary General Jens Stoltenberg denounced Russias “illegal and illegitimate” annexation of four regions of Ukraine and warned Moscow not to use nuclear weapons in this conflict, AFP reports. “Ukraine has of course the right to retake Ukrainian territory which is now occupied by Russian forces. Thats the reason why we support them” he told a press conference in Brussels, after the Russian President Vladimir Putin signed the annexation of the Ukrainian regions of Donetsk, Luhansk, Kherson and Zaporizhzhia. Ukraine reacted to the annexation of its four regions by demanding accelerated accession to NATO. Zelenski also accused Russia of redrawing borders through murder, blackmail, mistreatment and lies. The annexation of the Ukrainian territories by Russia was vehemently condemned by the West, and the USA, Great Britain and Canada almost immediately announced new sanctions against Moscow. The European Commission, in turn, demanded the tightening of conditions for the entry of Russian citizens into the EU bloc, and the leaders of the Council of Europe, an organization that guarantees human rights on the continent and to which Russia is no longer affiliated, also condemned Moscows action. A condemnation of the annexation in the UN Security Council was however blocked by Russias veto. China and India, which are its close partners, abstained from the vote. The annexation of the four Ukrainian regions was also firmly condemned by Romania, which does not and will never recognize the referendums illegally orchestrated by Moscow, according to President Klaus Iohannis. In a Facebook post, the Romanian president also recalled the joint statement of the European Council, which rejected and unequivocally condemned the illegal annexation of the Ukrainian regions.

Interconnector – The Romanian Prime Minister, Nicolae Ciucă, on Saturday participated, in Sofia, together with the President of the European Commission, Ursula von der Leyen, in the inauguration of the Bulgaria-Greece interconnector, which will allow natural gas imports from Azerbaijan, as an alternative supply source. In his speech, Nicolae Ciucă reminded that the deficiencies in the supply chain, especially with gas, artificially created by Russia, not only have an impact on Europe, but create disturbances on the global energy markets. Romania is ready to play its role as a reliable partner in ensuring Europes energy security, the Romanian Prime Minister gave assurances in Sofia. As for Romania, Nicolae Ciucă stated that the country has the necessary amounts of gas and will not lack gas in the coming winter. Also on Saturday, a new pipeline – Baltic Pipe – was put into operation, which transports gas from Norway to Poland, via Denmark and the Baltic Sea. According to Warsaw, the pipeline is at the heart of Polands strategy of diversifying its gas supply outside of Russia. Having become the main supplier of gas to Europe after the reduction of Russian deliveries, Norway is connected to Europe through a network of underwater gas pipelines that stretches on almost 9,000 km.

Chisinau – The Romanian Defense Minister, Vasile Dincu, has given assurances, in Chisinau, that Romania supports the Republic of Moldova to overcome the current energy crisis. At the same time, together with his Moldovan counterpart, Anatolie Nosatîi, he agreed to cooperate for the improvement of military education and for the modernization of the Moldovan army. “The modernization of the army of the Republic of Moldova needs Romanias support. The Republic of Moldova wants, with the support of Romania, to intensify the participation of the army in other peacekeeping missions too” – the Moldovan minister stated. In turn, the president of the Moldovan Parliament, Igor Grosu, thanked Bucharest, during the meeting with the Romanian official, for the support it offers to the army of the neighboring state, including by organizing joint exercises with the participation of the Moldovan military. The two also discussed the security challenges facing Chisinau and the entire region as a result of the Russian aggression against Ukraine. The Romanian Defense Minister is on a two-day official visit to Chisinau.

Gas — Gazprom has completely suspended gas supplies to Eni for Saturday, invoking the impossibility of transporting gas through Austria – the Italian hydrocarbons giant announced, AFP reports. Most of the Russian gas delivered to Italy passes through Ukraine, through the TAG gas pipeline that reaches the north of the country, at the border with Austria. Italy consumed 29 billion cubic meters of Russian gas last year, representing approximately 40% of its imports. According to Eni, the country is gradually replacing about 10.5 billion cubic meters of this amount by imports from other countries, starting this winter. Russian gas exports to Europe have been in constant decline since the first sanctions were imposed on Russia. The most affected countries are Germany, Hungary and Austria. The least affected countries are France, Sweden and Great Britain, which have not traditionally relied on Russia, as well as Italy.

Energy – European energy ministers have decided to tax the additional income made by producers in the field that exceed a maximum level of 180 Euros for one Megawatt-hour between December 1, 2022 and June 30, 2023. The money will be used to finance the protection measures for final electricity consumers. The European officials also aim at a voluntary reduction in electricity consumption by 10%, with a mandatory component of 5% during peak hours, in the context of the energy crisis caused by the war in Ukraine. The Romanian energy minister, Virgil Popescu, announced that, during the negotiations, Romania obtained the guarantee that the measures already adopted at the national level regarding the consumer protection can be maintained.

Recession — Analysts believe that the world economy is approaching a period of recession. In their opinion, the world is witnessing a new world order and a resettlement of monetary flows and policies that will be negotiated between China and the US. According to Andrei Rădulescu, director of macroeconomic analysis, the recent developments of indicators in the United States and in the euro zone clearly express the state of recession in the second half of this year, so, an economic crisis similar to that of the late 90s will follow. Also a social crisis is expected in Europe, Adrian Rădulescu believes, which will not be felt so acutely in Romania, because the degree of dependence on hydrocarbons imports from Russia is much lower. In his opinion, Romania can enter the top of ten European economies by the end of the decade from the perspective of the nominal gross domestic product, because the country has a younger population compared to the western states, and the investments of the Euro-Atlantic bloc in the national economy will continue.

1 October 2022
October 1, 2022

Ukraine — The NATO Secretary General Jens Stoltenberg denounced Russias “illegal and illegitimate” annexation of four regions of Ukraine and warned Moscow not to use nuclear weapons in this conflict, AFP reports. “Ukraine has of course the right to retake Ukrainian territory which is now occupied by Russian forces. Thats the reason why we support them” he told a press conference in Brussels, after the Russian President Vladimir Putin signed the annexation of the Ukrainian regions of Donetsk, Luhansk, Kherson and Zaporizhzhia. Ukraine reacted to the annexation of its four regions by demanding accelerated accession to NATO. Zelenski also accused Russia of redrawing borders through murder, blackmail, mistreatment and lies. The annexation of the Ukrainian territories by Russia was vehemently condemned by the West, and the USA, Great Britain and Canada almost immediately announced new sanctions against Moscow. The European Commission, in turn, demanded the tightening of conditions for the entry of Russian citizens into the EU bloc, and the leaders of the Council of Europe, an organization that guarantees human rights on the continent and to which Russia is no longer affiliated, also condemned Moscows action. A condemnation of the annexation in the UN Security Council was however blocked by Russias veto. China and India, which are its close partners, abstained from the vote. The annexation of the four Ukrainian regions was also firmly condemned by Romania, which does not recognize and will never recognize the referendums illegally orchestrated by Moscow, according to President Klaus Iohannis. In a Facebook post, the Romanian president also recalled the joint statement of the European Council, which rejected and unequivocally condemned the illegal annexation of the Ukrainian regions.

Interconnector — The Romanian Prime Minister Nicolae Ciucă participates Saturday in Sofia, in Bulgaria, in the event launching the commercial operation of the Greece-Bulgaria Interconnector. “It is a moment that we are awaiting with great interest and hope, and that will open an important stage in the efforts we are making together at the European level to ensure our energy needs, while reducing, at the same time, dependence on Russian gas. Gas imports from Azerbaijan through this interconnector represent a viable alternative source from now on, which will ensure Romania and other states located on the distribution diagram of this gas network access to the Trans-Anatolian Natural Gas Pipeline”, said the Prime Minister Ciucă. On the occasion of the visit to Sofia, the Romanian PM will meet with the President of Bulgaria, Rumen Radev, with the interim Bulgarian Prime Minister, Galab Donev, as well as with officials from other countries, including the President of Azerbaijan, Ilham Aliyev, and the Greek Prime Minister, Kyriakos Mitsotakis.

Visit — The Romanian Defense Minister Vasile Dîncu is paying a two-day official visit to Chisinau as of Saturday. According to a Defense Ministry press release, the Romanian official today has talks with his Moldovan counterpart, Anatolie Nosatîi. The official agenda also includes meetings with Natalia Gavriliţa, the Prime Minister of the Republic of Moldova, and with Igor Grosu, the President of the Moldovan Parliament. The agenda of the Romanian delegation also includes a visit to the Agency for Military Science and Memory and to the Military Museum in Chişinău.

Recession — Analysts believe that the world economy is approaching a period of recession. In their opinion, the world is witnessing a new world order and a resettlement of monetary flows and policies that will be negotiated between China and the US. According to Andrei Rădulescu, director of macroeconomic analysis, the recent developments of indicators in the United States and in the euro zone clearly express the state of recession in the second half of this year, so, an economic crisis similar to that of the late 90s will follow. Also a social crisis is expected in Europe, Adrian Rădulescu believes, which will not be felt so acutely in Romania, because the degree of dependence on hydrocarbons imports from Russia is much lower. In his opinion, Romania can enter the top of ten European economies by the end of the decade from the perspective of the nominal gross domestic product, because the country has a younger population compared to the western states, and the investments of the Euro-Atlantic bloc in the national economy will continue.

Energy – European energy ministers have decided to tax the additional income made by producers in the field that exceed a maximum level of 180 Euros for one Megawatt-hour between December 1, 2022 and June 30, 2023. The money will be used to finance the protection measures for final electricity consumers. The European officials also aim at a voluntary reduction in electricity consumption by 10%, with a mandatory component of 5% during peak hours, in the context of the energy crisis caused by the war in Ukraine. The Romanian energy minister, Virgil Popescu, announced that, during the negotiations, Romania obtained the guarantee that the measures already adopted at the national level regarding the consumer protection can be maintained. (LS)

1 October 2022
September 29, 2022 UPDATE

ENERGY Romania will not be facing glitches in natural gas and
electricity supplies, the state secretary with the Energy Ministry Dan Drăgan promised
on Thursday. At the time, Romania has 80% of its natural gas storage facilities
full, and hopefully the figure will be close to 90% in early November, he added.
The official also called for solidarity between the authorities, producers and
consumers, in line with the efforts made at EU level.

PRICE CAPS Diesel and petrol prices will
continue to be subsidised by roughly 10 eurocents until the end of the year, PM
Nicolae Ciucă announced on Thursday. He said the measure has already produced
visible results over the past 3 months, and fuel prices have been stabilised
and even decreased. Moreover, the measure has yielded results throughout the
supply chain, from providers to consumers. The PM added that on Saturday he
would take part, alongside several other senior officials, including the
president of the European Commission Ursula von der Leyen, in the opening of
the natural gas interconnector between Greece and Bulgaria, in Sofia.

MONKEYPOX Romania is requesting support in managing a monkeypox
outbreak. The National Committee for Emergency Situations Thursday decided to
resort to the European civil protection mechanism for the medicines needed for
approximately 150 patients. Romania has so far confirmed 40 cases, and in
mid-September the country received from the European Commission 5,000 monkeypox
vaccine doses, to be administered to those who get into contact with infected
people.

NATO NATO’s importance in countries’ national security has greatly
increased in the eyes of the public from 14 European and North-American
countries, according to a survey conducted by the German Marshall Fund made
public on Thursday. The EU is also regarded as very important for the national
security of countries in Europe. 78% of respondents said NATO is very important
for their country’s security, as against only 67% last year. Respondents in
countries near Russia and Ukraine place a particularly high value on NATO: 91%
of Poles, 88% of Romanians and 87% of Lithuanians, the report says. Also, 81%
of the European respondents said the EU is important for national security.

UKRAINE Russia’s president Vladimir Putin is to sign on Friday the
treaties on the annexation of the Ukrainian regions of Donetsk, Luhansk,
Zaporizhzhia and Kherson, the Kremlin announced. The leaders of the 4 breakaway
regions travelled to Moscow on Wednesday night for the ceremony, after the
illegal referendums organised by Russia and described by both Kyiv and Western
capitals as a sham. Meanwhile, the Ukrainian president Volodymyr Zelenskyy is
to hold an emergency meeting of top security and defence officials on Friday. The
US announced plans, jointly with its allies and partners, to impose higher
economic costs on Russia, while the European Commission proposed new sanctions. On the other hand, clashes continue to be reported in all the regions
where the referendums were held, and several Ukrainian localities are being
shelled. According to the Ukrainian defence ministry, the army focuses on
regaining control over the entire Donetsk region. (AMP)

29 September 2022
Senators cap energy prices

The Senate passed on Tuesday a government emergency
order capping and compensating for electricity prices. Suppliers will no longer
be able to bill private households with an average monthly consumption of up to
100 kWh more than 0.68 lei/kWh, including VAT, and households with an average
monthly consumption of up to 255 kWh more than 0.80 lei/ kWh, including VAT.

The Senate passed a number of amendments referring
both to household and non-household consumers. The list of beneficiaries is now
longer and also includes private households with a monthly average of over 300
kWh last year but who now stay within the new ceiling. One amendment stipulates
that families with three school-age children benefit from the lower price
whatever their consumption. This also applies to household consumers using electrical
devices or equipment needed for medical treatment. Energy suppliers say it will
be difficult to identify households with three children in school as they only collect
data referring to consumption.

It was also decided that the list of non-household
consumers benefitting from a capped price of 1 leu/ kWh, like small and medium
sized companies, would also include public transport companies, water and
sewerage services, religious establishments and medicine producers and suppliers.
The maximum final price billed by providers of natural gas is 0.31 lei/ kWh for
household users and 0.37 lei/ kWh for non-household users.

The Liberal senator Sorin Bumb says the amendments
adopted aim to make the effects of the rise in electricity and natural gas
prices tolerable for household users and small and medium sized businesses:

Household users consuming up to 100 kWh will pay 0.68
lei, and those consuming up to 255 kWh 0.8 lei. An average will be calculated
for last year and those who consumed below 300 kWh last year will also pay 0.8
lei, which I think this is only right, including a large as possible a category
of household users.

Things are seen differently from the opposition, with
the senators of the Save Romania Union and the Alliance for the Union of
Romanians abstaining on account of the fact that their amendments were not
taken into consideration. Cristian Bordei, from the Save Romania Union:

The fact that the state obstinately rejects all
proposals to lower taxes only proves once more that the state wants to continue
to get the lion’s share of the money generated by these price increases at the
expense of the economy and its citizens.

The bill adopted by the Senate will next be submitted
to the Chamber of Deputies, which is the decision-making body in this case. (CM)

28 September 2022
Energy prices trigger more discontent

After they have been
advised to save energy in order to pay lower bills, many Romanians have recently
learnt that something doesn’t actually add up. And that’s because the capping
decided by the government through its latest Emergency Ordinance is not based
on the last month’s consumption but on the average monthly consumption they had
last year.

Things are very
clear on paper: for 100 kilowatts one must pay 0.68 RON. Between 101 and 255
kilowatts, the price is 0.80 RON and consumptions over 255 kilowatts will be charged
heavily under the contracts consumers have signed with energy providers. So, in
order to see if they can benefit the latest measures on capped electricity prices,
the Romanians must check the bills they paid last year and assess their average
consumption on the year that passed.

But because no one
publicly explained how calculations are made, some people have had the
unpleasant surprise of receiving huge electricity bills without understanding
why. According to data published by the National Authority for Energy
Regulations (ANRE), Romania has so far had 4.9 million households in the 100
kilowatts bracket. A little over 3.5 million households are in the second
category while between 100 and 200 thousand households do not benefit any
capping regulations.

Recently submitted
to Parliament, the new capping scheme stipulated by the Emergency Ordinance is
expected to get some new amendments.

Both the ruling and
opposition parties have come up with a series of amendments to the law. For
instance, the co-ruling PSD and opposition USR have been pleading for changing
the way in which the consumption is charged, so that it may not be based on the
last year’s average consumption, but strictly on the consumption they
registered this year. However, ANRE says this solution is difficult to implement
technically and the agency endorses the older method based on the past
consumption.

The co-ruling PNL comes
up with a method based on the average consumption of the last three years. Amid
public discontent triggered by the huge energy bills, Energy Minister Virgil
Popescu has this week called on ANRE to do their job and closely monitor the
energy market while the Consumer Protection Office has been asked to sanction
the providers failing to comply with the regulations. ANRE has already kicked
off a series of unexpected controls at six energy distributors and in turn, the
National Authority for Consumer Protection has started controls at electricity
providers across the country in order to see how electricity bills are being
calculated.

(bill)

22 September 2022
September 21, 2022 UPDATE

Russia. Russia is prepared to use all means, including nuclear, “to defend itself”, Russian President Vladimir Putin said in a televised address to his nation on Wednesday, France Press reports. Putin, who has accused the West of wanting to destroy Russia, has ordered the partial mobilization of reservists, which might escalate the conflict in Ukraine. Putin also said he supported annexation referendums to be held in the Ukrainian territories occupied by Russia. Pro-Russian authorities in four Ukrainian regions – Kherson, Zaporizhzhia, Donetsk and Luhansk – have announced referendums for the unification with Russia, to be held in the coming days. In Donetsk and Luhansk there are separatist republics proclaimed as of 2014, whose independence had been recognized by Russia before its invasion of Ukraine. In Kherson and Zaporizhzhia, on the other hand, pro-Russian authorities were installed after a part of the two regions had been occupied following the Russian invasion in February. In Bucharest, PM Nicolae Ciuca said he took notice, with concern, of the Russian Presidents statements regarding a partial military mobilization and the organization of the so-called referendums. The PM said that Romania will maintain its balanced stand and will continue to calmly monitor, alongside its NATO allies, the developments in the neighboring Ukraine.

Ukraine. “Romania will continue to support the neighboring Ukraine”, invaded by the Russian troops, President Klaus Iohannis said before the United Nations General Assembly in New York. He recalled that Romania had offered direct humanitarian assistance to those over 2.3 million Ukrainian refugees crossing its borders since the start of the war. On the sidelines of the UN General Assembly, Romanian Foreign Minister Bogdan Aurescu took part in a meeting with members of the Bucharest 9 Format (B9), which are NATO member states on the Alliances Eastern flank. Aurescu pleaded for further multidimensional support for Ukraine and for further pressure on Russia, including through a new package of sanctions. He emphasized the importance of bringing Russia to justice by using the tools of international law.

Government. The Romanian Government has approved additional funding for the defense industry, to make up for the increases in the prices of materials and services. At the same meeting, the Executive adopted the decision by which the sums necessary for the payment of the approximately 20,000 people who were involved in this years census are distributed. The National Strategy for the Circular Economy was also approved, which provides for the most efficient method of collecting and reusing waste. Another document endorsed on Tuesday by the Romanian government concerns the possibility for administrative-territorial units to establish administrative consortia where the human resource can be used jointly when there are not enough specialists in areas of public interest.

Energy. Oil refineries in Romania have found an alternative to Russian oil, given that the embargo on Russian oil products takes effect in December, Energy Minister Virgil Popescu has announced. According to the Romanian Minister, given the current context on the gas market, OMV Petrom, the largest energy company in South-East Europe and Romgaz, Romanias largest producer and main supplier of natural gas, should announce this year the decision of investing in gas extraction in the Neptune Deep perimeter of the Black Sea. Also, the gas pipe connecting Greece to Bulgaria, to become operational on October 1st, will allow Romania to transport gas from Azerbaijan, Virgil Popescu has also said.(MI)

21 September 2022
State of the Union Adddress 2022

The energy crisis and the support for Ukraine dominated the address on the state of the Union by the President of the European Commission, Ursula von der Leyen, in the plenary session of the European Parliament in Strasbourg. Vladimir Putin, she reminded, is solely responsible for the current crisis and for the uncontrolled increase in gas and electricity prices. The EC is looking for answers to the challenges of this crisis, and comes up with several proposals among which a reduction of electricity consumption by at least 5% during peak hours and a reduction in demand by at least 10% by March next year. The EC also proposes a temporary income ceiling of 180 Euros for one megawatt/hour for producers of electricity from renewable, nuclear and lignite sources. Revenues that exceed the ceiling will be collected by governments and used to help energy consumers reduce their bills, Mrs. von der Leyen said. The EC President also proposed capping profits for companies that produce low-cost electricity.

Ursula von der Leyen: “In our social market economy, profits are good. But in these times it is wrong to receive extraordinary record profits benefitting from war and on the back of consumers. In these times, profits must be shared and channelled to those who need it the most. Our proposal will raise more than 140 billion Euros for Member States to cushion the blow directly. And because we are in a fossil fuel crisis, the fossil fuel industry has a special duty, too. Major oil, gas and coal companies are also making huge profits. So they have to pay a fair share — they have to give a crisis contribution.”

The EC President also pleaded in favor of redesigning the electricity market, which should be decoupled from the gas market. She announced the creation of a European Hydrogen Bank, a moment that may represent a turning point for the European Union, which has pledged to leave behind its dependence on fossil fuels imported from Russia. In the presence of Olena Zelenska, the wife of the Ukrainian President, who was invited to attend the speech, Ursula von der Leyen stated that the financial aid would continue for Ukraine as a long-term commitment. The EU will grant 100 million Euros for the reconstruction of schools destroyed by the war, but besides funding, it will also provide the means the country needs to maximize its potential. Europe has provided Ukraine with financial assistance worth over 19 billion Euros, not to mention the military support. (LS)

15 September 2022
September 12, 2022 UPDATE

AGREEMENT Romania and France signed a
transport agreement in Paris on Monday pledging to support the shipment of Ukrainian
grain to the countries needing it. The Romanian authorities have announced they
will cooperate with their French counterparts to draw up a medium-term strategy
for the corridors making the connection between Romania and Ukraine, including
those through the ex-soviet, Romanian-speaking Republic of Moldova. The
agreement with Romania will allow Ukraine to ship more grain to Europe and the developing
countries, particularly in the Mediterranean, which are facing food shortages,
the French Transport Minister Clement Beaune said. According to the French
official, more than a third of the exported grain goes to developing countries.

INFLATION Romania’s annual inflation rate went up to 15.32% in August
from 14.96% in July. According to data published by the National Statistics
Institute on Monday, foodstuffs prices went up by 18.22%, while those for
non-food products also went up by 15.98%. Prices for services increased by
8.26%. The Central Bank has increased its inflation forecast for 2022 to 13.9%,
estimating an inflation rate of 7.5% for 2023. The Central Bank expects the
deflation trend to temporarily stop in the second quarter of 2023, once the
current state-aid schemes targeting the energy sector end. The Central Bank
expects an inflation rate of 2.3% for June 2024.

QUEEN King Charles III on Monday said that
Parliament is the living and breathing instrument of our democracy. In his
first speech before the two houses of the Legislature at Westminster Hall, King
Charles said Queen Elizabeth II ‘set an example of selfless duty’ pledging to
follow her example of commitment to a constitutional government. The coffin of
Her Majesty, Elisabeth II, was taken from the Palace of Holyroodhouse in
Edinburgh to St. Giles Cathedral with a procession attended by Charles and
royal family members. The coffin will be flown to London on Tuesday and taken
to Buckingham Palace before being moved to the Palace of Westminster the next
day, where the queen will lie in state until her funeral on September 19.

ENERGY The European Commission is this week
expected to present the set of proposals agreed upon in Friday’s meeting of EU
Energy Ministers, designed to combat the energy crisis. The package might
include a cap on energy prices and taxing the excess profits of fossil fuel
companies and redistributing the revenues to state-aid schemes. Romania’s
Energy Minister, Virgil Popescu, says Romania supports a balanced approach
towards all Member States. Capping natural gas prices at community level would
significantly curb volatility on the EU energy market, the Romanian official
said.

(bill)

12 September 2022
September 10, 2022 UPDATE

KING Senior British MPs Saturday swore an oath of allegiance to King Charles III, officially proclaimed king by the Accession Council,a body convened to confirm the new British monarchs throughout history. Both chambers of the British Parliament held special sessions, so that lawmakers may honour the Queen. Thousands have gathered in front of Buckingham Palace, the main residence of British monarchs in London, to pay tribute to Queen Elizabeth II, who passed away on Thursday, aged 96, at Balmoral Castle in Scotland. King Charles III confirmed that the day of the Queens funeral will be a banking holiday in the United Kingdom. The funeral will take place at Westminster Abbey in London, on Monday, 19 September. The Queens coffin will be brought to Edinburgh on Sunday and later on to London, where the Queen will lie in state at Westminster Hall. After the service, which will be attended by heads of state and government from around the world, the Queens coffin will be taken to Saint Georges Chapel at Windsor Castle, where the Queen is to be buried.

ENERGY EU energy ministers voiced support for emergency measures in response to the energy crisis, and even mentioned price capping for natural gas imports. At Fridays extraordinary meeting in Brussels, officials for the 27 Member States agreed that a “unified approach” was needed to address the rise in energy prices caused by Russias invasion in Ukraine. They gave the European Commission several days to come up with a solid and concrete plan, said the Czech industry minister Jozef Sikela, whose country holds the rotating presidency of the Union. Romania, which was represented by the energy minister, Virgil Popescu, pleaded for measures such as a price cap on Russian gas imports or an EU-wide platform for the joint procurement of natural gas. As for cutting down consumption, Bucharest said this should be voluntary, depending on national capacities and market developments.

FLIGHTS The national airline TAROM Saturday scheduled 2 additional flights to Greece to repatriate the Romanian passengers abandoned by the low-cost operator Blue Air, which announced it lacked funding even for fuel. TAROM has so far organised 4 other special flights, to Israel, Greece, Cyprus and Spain. Several thousand Romanians have been stranded in international airports since Tuesday night, when Blue Air announced it was suspending flights. Although the authorities have unfrozen the accounts of the airline, which had excessive debts to the Romanian state, Blue Air said it would only resume flights on 10 October. The transport minister Sorin Grindeanu urged Blue Air customers to try to find other options to return, and pointed out TAROM could not replace all the flights that had been cancelled. In 2020, during the COVID pandemic, Blue Air took out a state-guaranteed loan of over EUR 60 mln. This summer, it was fined EUR 2 mln by the Consumer Protection Authority, for cancelling over 11,000 flights in 2021 and 2022. Blue Airs current estimated debts amount to EUR 230 mln.

UKRAINE Romania and 3 other EU member states (Greece, Poland and Lithuania) call on the European Commission to grant them exemptions from the budget deficit rules, with respect to military expenditure, in order to be able to make the investments required after the Russian invasion in Ukraine. They want this expenditure excluded from the deficit calculation, so that the 3% of GDP ceiling required by the EU may be observed. The 4 countries argue that this would help them mitigate the risks facing the Union. Meanwhile, a report made public by the World Bank, the Ukrainian government and the European Commission indicates that Ukraines reconstruction after the Russian invasion may cost around USD 350 bln, with figures set to increase in the coming months, as the war continues. According to the report, reconstruction and revamping needs in the social, industrial and infrastructure fields are 1.5 times higher than Ukraines GDP in 2021. Russias aggression had caused direct damages of over USD 97 bln by 1 June, with the most affected areas including housing (40% of the total damages), transports (31%), trade and industry (10%). The regions of Donetsk, Luhansk and Kharkiv are the most heavily hit, followed by Kyiv, Chernihiv and Zaporizhzhia.

RUSSIA A number of Russian Deputies from the Sankt-Petersburg area were summoned to the police after requesting the impeachment of president Vladimir Putin for high treason, in relation to the Russian aggression in Ukraine. In a rare show of dissent, they called on Russias parliament to impeach the president for the death of Russian youth sent to war, for Russias economic downturn and brain drain, and for NATOs eastward expansion. Not least, they argued, the invasion of Ukraine had the opposite effects to those expected by Moscow. (AMP)

10 September 2022
September 10, 2022

KING King Charles III was officially proclaimed
monarch in a ceremony held at St. James’s Palace in London on Saturday, by the Accession Council, a body convened to confirm the new British
monarchs throughout history.
Also today, the Cabinet will have their first meeting with King Charles III,
just days after PM Liz Truss formed a new government. Thousands have gathered in front of Buckingham Palace, the main
residence of British monarchs in London, to pay tribute to Queen Elizabeth II,
who passed away on Thursday, aged 96, at Balmoral
Castle in Scotland. She will be brought to London, at Westminster Hall, and
the public will have 4-5 days to say goodbye. The
funerals will take place at Westminster Abbey, the church where British kings
are crowned. The BBC notes that the last funeral of a monarch at Westminster
Abbey took place in the 18th century. After the funeral, to be attended by
heads of state and government from around the world, the Queen will be taken to
Windsor Castle and buried in the Saint George Chapel within its premises.

ENERGY EU energy ministers voiced support for emergency
measures in response to the energy crisis, and even mentioned price capping for
natural gas imports. At Friday’s extraordinary meeting in Brussels, officials
for the 27 Member States agreed that a unified approach was needed to address
the rise in energy prices caused by Russia’s invasion in Ukraine. They gave the
European Commission several days to come up with a solid and concrete plan, said
the Czech industry minister Jozef Sikela, whose country holds the rotating
presidency of the Union. Romania, who was represented by the energy minister,
Virgil Popescu, pleaded for measures such as a price cap on Russian gas imports
or an EU-wide platform for the joint procurement of natural gas. As for cutting
down consumption, Bucharest said this should be voluntary, depending on
national capacities and market developments.

FLIGHTS The national airline TAROM provides today
2 additional flights to Greece to repatriate the Romanian passengers abandoned
by the low-cost operator Blue Air, which announced it lacked funding even for
fuel. TAROM has so far organised 4 other special flights, to Israel, Greece,
Cyprus and Spain. Several thousand Romanians have been stranded in
international airports since Tuesday night, when Blue Air announced it was
suspending flights. Although the authorities have unfrozen the accounts of the
airline, which had excessive debts to the Romanian state, Blue Air said it
would only resume flights on 10 October. The transport minister Sorin Grindeanu
urged Blue Air customers to try to find other options to return, and pointed
out TAROM could not replace all the flights that had been cancelled. In 2020, during
the COVID pandemic, Blue Air took out a state-guaranteed loan of over EUR 60
mln. This summer, it was fined EUR 2 mln by the Consumer Protection Authority, for
cancelling over 11,000 flights in 2021 and 2022. Blue Air’s current estimated
debts amount to EUR 230 mln.

AUTOMOTIVE Romania’s
automotive industry output went up nearly 25% in July and August, compared to
the corresponding period of 2021. According to the Automotive Producers
Association, more than 61,000 vehicles were assembled in the Ford plant in
Craiova and Dacia-Renault plant in Mioveni. In the first 8 months of the year, over
330,000 vehicles were produced, accounting for a 15.5% increase since 2021.

UKRAINE Romania and 3
other EU member states (Greece, Poland and Lithuania) call on the European
Commission to grant them exemptions from the budget deficit rules, with respect
to military expenditure, in order to be able to make the investments required
after the Russian invasion in Ukraine. They want this expenditure excluded from
the deficit calculation, so that the 3% of GDP ceiling required by the EU may
be observed. The 4 countries argue that this would help them mitigate the risks
facing the Union. Meanwhile, a report made public by the World Bank, the
Ukrainian government and the European Commission indicates that Ukraine’s
reconstruction after the Russian invasion may cost around USD 350 bln, with figures set to increase in the coming months,
as the war continues. According to the report, reconstruction and revamping
needs in the social, industrial and infrastructure fields are 1.5 times higher
than Ukraine’s GDP in 2021. Russia’s aggression had caused direct damages of
over USD 97 bln by 1 June, with the most affected areas including housing (40% of
the total damages), transports (31%), trade and industry (10%). The regions of Donetsk,
Luhansk and Kharkiv are the most heavily hit, followed by Kyiv, Chernihiv and
Zaporizhzhia.

TENNIS The Romanian tennis players Sorana Cîrstea and Irina Begu,
ranking 37 and 42 in the world, respectively, take part in the first edition of
Ţiriac Foundation Trophy, held between the 10th and 18th September in
Bucharest. The 2 players received wild cards from the organisers, and their
current world rankings makes them seed no 1 and 2 in the tournament hosted by
the Romanian capital city. Ţiriac Foundation Trophy is a WTA 125 tournament
organised by the Romanian Tennis Federation and supported by the Ţiriac
Foundation and the Sports Ministry. The main draw includes 32 players, and the
doubles competition involves another 16. They compete for USD 115,000 in total
prize money and 160 points in the WTA ranking. (AMP)

10 September 2022
September 9, 2022 UPDATE

QUEEN The death of Queen Elizabeth II, the longest-reigning monarch in
English history, brought her eldest son Charles to the throne. He will reign
as King Charles III. The protocol for proclaiming a new monarch provides for
the speedy convening of an Accession Council made up of high-ranking
politicians, bishops of the Anglican Church, together with secular
representatives of the Kingdom. Queen Elizabeth II died on Thursday, aged 96,
at Balmoral Castle in Scotland. She is to be brought to London, at Westminster
Hall, and the public will have a few days to say goodbye. The funerals will
take place at Westminster Abbey, the church where British kings are crowned.
The BBC notes that the last funeral of a monarch at Westminster Abbey took
place in the 18th century. After the funeral, to be attended by heads of state
and government from around the world, the Queen will be taken to Windsor Castle
and buried in the Saint George Chapel within its premises. The president of Romania, Klaus
Iohannis, sent a condolence message to King Charles III. He will be officially
proclaimed king in a ceremony to be held on Saturday, Buckingham Palace announced.

DEFICIT Romania’s trade balance deficit in the first 7 months of this year
increased by almost EUR 5.9 billion, to EUR 18.77 billion, as exports rose by
23.9% and imports increased by 29%, according to data provided by the National Statistics
Institute, made public on Friday. Between January and July 2022, exports totalled
EUR 52.67 billion, and imports EUR 71.44 billion. On the other hand, net
investments in the national economy totalled EUR 11 billion in the first 6
months of this year, down 0.8% compared to the similar period in 2021, NSI data
show.

ENERGY The Romanian Minister of Energy, Virgil Popescu, attended a special
meeting of the EU Energy Council in Brussels on Friday, in the context of
EU-wide discussions over the rise in energy prices. At the meeting, Romania
supported measures such as capping Russian natural gas prices, a platform for
the joint purchase of natural gas by the EU, and access to credit lines for
companies with the European Central Bank, the Energy Ministry said. Romania
also emphasised the importance of activating the EU Energy Platform for the
joint procurement of natural gas, so as to ensure fair distribution of the
additional gas and LNG procured by the Union. While in Brussels, Virgil Popescu
had a bilateral meeting with his Bulgarian counterpart. Hristov Rossen. The two
discussed the importance of regional cooperation for the joint purchase of
natural gas, as well as for ensuring increased energy stability in the region.
In another move, in Bucharest, energy operators have called on the Government
to reconsider the order issued last week, which provides for capping and
compensation of gas and electricity bills, as well as for over taxation of
companies in the field. The Association of Energy Suppliers warns that the
document was developed without consulting the participants in the field, thus
jeopardizing the security of gas and electricity supply to consumers.

COHESION The Romanian Government has adopted measures concerning one-third
of the cohesion fund, amounting to EUR 16 billion, the Minister for Investment
and European Projects, Marcel Bolos, has announced. He has explained that the
money can be used to access and develop investment projects in transport
infrastructure, health, water supply and waste management. Under the cohesion
policy, Romania has a EUR 43 billion budget until December 31st, 2029, the
minister has stated. The projects mainly focus on the building of 600 km of motorway
and 3 regional emergency hospitals, in Craiova, Iasi and Cluj-Napoca.

AID The European Commission has approved a EUR 4 bln aid scheme for
Romania, in order to support businesses in all sectors in the context of the
invasion of Ukraine by Russia. According to the EC, Romania’s aid scheme is
necessary, adequate and proportionate to remedy a serious disruption to a
member state’s economy, in accordance with EU state aid rules. Under this
measure, the aid will take the form of guarantees for loans, with a maximum
budget of EUR 3.6 billion, with the balance to be provided in direct grants.
Support under the scheme will be granted until 31 December 2022 at the latest.

TENNIS The Romanian tennis players Sorana Cîrstea and Irina Begu, ranking
37 and 42 in the world, respectively, take part in the first edition of Ţiriac
Foundation Trophy, held between the 10th and 18th
September in Bucharest. The 2 players received wild cards from the organisers,
and their current world rankings makes them seed no 1 and 2 in the tournament
hosted by the Romanian capital city. Ţiriac Foundation Trophy is a WTA 125 tournament
organised by the Romanian Tennis Federation and supported by the Ţiriac
Foundation and the Sports Ministry. The main draw includes 32 players, and the
doubles competition involves another 16. They compete for USD 115,000 in total
prize money and 160 points in the WTA ranking. (AMP)

9 September 2022
September 9, 2022

Queen. The death of Queen Elizabeth II, the longest-reigning monarch in English history, brought her eldest son Charles to the throne, who will reign as King Charles III. The protocol for the enthronement of a new monarch provides for the speedy convening of an Accession Council made up of high-ranking politicians, bishops of the Anglican Church, together with secular representatives of the Kingdom. Queen Elizabeth II died on Thursday, aged 96, at Balmoral Castle in Scotland. She is to be transported to London, at Westminster Hall, and the public will have a few days to say goodbye. The funerals will take place at Westminster Abbey, the church where British kings are crowned. The BBC notes that the last funeral of a monarch at Westminster Abbey took place in the 18th century. After the funeral, which is expected to be attended by heads of state and government from around the world, the Queen will be transported to Windsor Castle and will be buried in the Saint George Chapel within its premises.

Deficit. Romanias trade balance deficit in the first seven months of this year increased by almost 5.9 billion euros, to 18.77 billion, as exports rose by 23.9% and imports increased by 29%, according to data provided by the National Institute of Statistics, published on Friday. Between January and July 2022, exports totaled 52.67 billion euros, and imports 71.44 billion euros,. On the other hand, net investments in the national economy totaled 57.25 billion lei (over 11 billion euros), in the first six months of this year, down 0.8% compared to the similar period in 2021, NIS data show.

EU Council. The Romanian Minister of Energy, Virgil Popescu, was mandated to represent the government, today, at EU Energy Council in Brussels. According to the spokesperson of the executive, the minister will support a unitary approach at European level in order to ensure the supply of gas and electricity at an affordable price for all citizens of the Union. Before the meeting, Virgil Popescu had a bilateral meeting with his Bulgarian counterpart. Hristov Rossen. The two discussed the importance of regional cooperation for the joint purchase of natural gas, as well as for ensuring increased energy stability in the region. Romania and Bulgaria will join forces to prepare for winter from the point of view of energy supply, the Romanian minister wrote on social media. In another move, in Bucharest, the energy operators have called on the Government to reconsider the ordinance issued last week, which provides for the capping and compensation of gas and electricity bills, as well as the over taxation of companies in the field. The representatives of the Association of Energy Suppliers warn that the document was developed without consulting the participants in the field, thus jeopardizing the security of gas and electricity supply to consumers. They say that the government changes the rules while playing and thus upsets the calculations for the business plan or even those of the household consumers.

Cohesion. The Romanian Government has adopted a package of measures for the operationalization of one third of the cohesion fund, amounting to 16 billion Euro, the Minister for Investment and European Projects, Marcel Bolos, has announced. He has explained that the money can be used to access and develop investment projects in transport infrastructure, health, water supply and waste management. Under the cohesion policy, Romania has a 43 billion Euro budget until December 31st, 2029, the minister has stated. The projects mainly focus on the building of 600 km of highway and 3 regional emergency hospitals, in Craiova, Iasi and Cluj-Napoca.

Aid. The European Commission has approved an aid scheme for Romania, worth four billion euros, in order to support businesses in all sectors in the context of the invasion of Ukraine by Russia – according to a press release of the community executive. According to the EC, Romanias aid scheme is necessary, adequate and proportionate to remedy a serious disruption to a member states economy, in accordance with EU state aid rules. Under this measure, the aid will take the form of guarantees for loans, with a maximum budget of 3.6 billion euros, and the rest in direct grants. Support under the scheme will be granted until 31 December 2022 at the latest.

Accident. A Romanian maritime dredger suffered, on Thursday evening, minor damage following the explosion of a sea mine, in the Black Sea, over 40 kilometers away from the port of Constanţa (south-east), with no casualties reported, the General Staff of the Naval Forces informs. The 75 soldiers of the crew are not in danger, the ships buoyancy was not affected, and there are no major damages on board. After the launch of the armed aggression of the Russian Federation in Ukraine, this is the third mine reaching the area of responsibility of the Romanian Naval Forces. From the beginning of the war until now, 28 sea mines have been destroyed in the western part of the Black Sea, of which three are from Turkey, two from Romania, one from Bulgaria and 22 from Ukraine.

Football. Romanias football champion, CFR Cluj (north-west), drew 1-1 away in Pristina, with Kosovar FC Ballkani, in the first match of Group G of the Europa Conference League. The other match of the group, between Sivasspor, from Turkey, and Slavia Praga (Czech Republic) ended with the same score. In Group B, Romanias vice-champion, FCSB (Bucharest), lost, in London, 1-3, against the English team West Ham United. In the other match in the group, the Belgians from Anderlecht Brussels beat the Danes from Silkeborg IF, score 1-0. (MI)

9 September 2022
September 8, 2022

MEASURES The
government in Bucharest has today tackled a series of measures to overcome the
energy crisis announced by the European Commission. According to Prime Minister
Nicolae Ciuca all the measures taken by its cabinet to cap prices for
electricity and gas have been tailored to meet the recommendations made by
Ursula von der Leyen and are aimed at protecting household consumers, the
Romanian economy and curbing consumption. The European Commission wants to
reduce the price paid for Russian gas as part of a plan to diminish energy
costs. According to the head of the EU Commission, the money Putin uses to fund
his war campaign in Ukraine must be limited. The Commission wants to also curb
demand by reducing energy consumption at peak hours. In Moscow, president Putin
says that Russia will completely stop energy deliveries if the EU caps the
Russian exports adding the Europeans will freeze in winter. The European Energy
Ministers are to discuss the Commission’s proposals on Friday.

BLUE AIR Romanian discount carrier Blue Air is expected
to resume its flights shortly. Company officials are to announce today what
flights the company is going to resume. On Tuesday the airline announced the
suspension of its flights until September 12th after its bank
accounts were frozen by the state amid concerns over unpaid debt. According to
the Romanian Foreign Ministry, Romanian nationals abroad affected by the
measure can contact the nearest diplomatic mission or consular office. The
Romanian passengers stranded at airports across Europe and beyond are being
repatriated by means of the planes of the national airline Tarom after the
government has allotted money from the reserve funds.

EXPULSION The Foreign Ministry in
Moscow has declared ‘persona non grata’ a member of the Romanian Embassy in
Moscow, the RIA agency announced on Thursday. Reuters recalls that Romania,
like other EU members, has been designated an ‘unfriendly country’ by Moscow in
response to sanctions imposed after the Russian invasion of Ukraine. Earlier
this year Russia and EU countries expelled hundreds of each other’s diplomats
in the wake of the Russian invasion on February 24th.

FOOTBALL Romania’s football champions CFR Cluj today takes on FC Ballkani of
Pristina in their first Group G game of the Europa Conference League. In the
other match of this group Turkish side Sivasspor will be taking on Slavia Praga
while in Group B, Romania’s vice-champions FCSB will be playing English side
West Ham United in London. Also in this group Belgian side Anderlecht Brussels
will be up against the Danish from Silkeborg.

DAY Christians in
Romania are today celebrating the Birth of Jesus’s Mother, St. Mary. According
to the Christian belief, the Virgin Mary was born out of a miracle. Her parents
Joachim and Ana were very old and could not have babies. In response to their
prayers God made a miracle and Ana got pregnant at an old age. They named their
daughter Mary and she would give birth to our Lord Jesus Christ, the Messiah.
Christians believe the Holy Virgin reached the highest degree in holiness and
unlike the other saints, she is celebrated four times a year, on her birthday, Her
entry into the Temple, the Annunciation and the Ascension.

(bill)

8 September 2022