May 3, 2022

WAR IN UKRAINE - The European Commission is today discussing the sixth package of sanctions against Russia, which might include a spaced-out embargo on oil imports. Yesterday's meeting of the EU Energy Ministers underlined, however, the lack of consensus regarding sanctions on Russian energy imports. Whereas Germany seems willing to curb its reliance on oil imports from the Russian Federation, Hungary again has opposed the move. Earlier today, Slovakia announced it will try to obtain an exemption from any embargo on Russian oil agreed at EU level. Meanwhile, American and British officials believe Russia is preparing to officially declare war on Ukraine in order to mobilize its reserve army, in an attempt to conquer the east and south of Ukraine. At the same time, the US ambassador to the OSCE, quoted by our Washington correspondent, says Russia is ready to annex new Ukrainian territories.

NATURAL GAS - The Romanian state-owned company Romgaz is expected to complete the deal allowing the American company ExxonMobil to exploit the natural gas deposits in the Black Sea, in the Neptune Deep offshore field. Some 100 billion cubic meters of gas are expected to be extracted from the area, while exploitation rights are owned by ExxonMobil and OMV Petrom in equal shares. Romgaz will pay over $1 billion for today's contract. Before extraction works can start, investors expect Romanian authorities to modify the offshore law, which the Senate's special committees started debating today. The main modifications to the document adopted four years ago have to do with lowering exploitation taxes for deposits in the Black Sea as well as on land, as well as with the elimination of restrictions on prices, all part of a legal framework to ensure predictability. The Romanian state and state-owned enterprises will be given priority to buy the resulting output, while 60% of the profit will go to the state. Additionally, companies will be able to deduct 40% of their investment, compared to 30% under the current legislation.

FORECAST - The National Strategy and Forecast Company downgraded to 2.9% the economic growth forecast for this year, compared to 4.3% previously. The Commission says the overlapping shocks generated by the energy price hikes which impacted global supply chains) are amplifying the risks and economic uncertainty, also impacting the short-term evolution of the business sector. The forecast is in line with the estimates presented by international financial institutions, which significantly lowered their forecast regarding Romania's economic growth in 2022. The IMF recently estimated a growth of 2.2% for 2020, down from 4.8% originally, while the World Bank estimated Romania's GDP growth to stand at 1.9% this year.

EUROBAROMETER - Three quarters of young Romanians feel optimistic about the future of the European Union, while half of them believe things are headed in the right direction for the EU, according to a Eurobarometer published on Monday. According to the survey, young Romanians have greater support for European policies compared to other age categories and are content with their lives. Their main concerns are related to the education system, the economy, unemployment, housing, the environment and climate change. 

RWB - Romania can boast of a diverse, relatively pluralistic media landscape that produces hard-hitting public interest investigations. Pressure from owners, lack of transparency in financing or market difficulties, however, hamper the reliability of the information, reads the 2022 World Press Freedom Index released by Reporters without Borders. Romania ranks 56th, down by 8 positions compared to the previous year. Norway remains top of the world press freedom index for the sixth consecutive year, followed by Denmark and Sweden. The lowest-placed countries in terms of press freedom are China, Myanmar, Turkmenistan, Iran, Eritrea and North Korea. In a message released today to mark World Press Freedom Day, Romania's Prime Minister, Nicolae Ciucă, expressed confidence there is no democracy without press freedom, whereas journalists should be allowed to do their job.

COLECTIV - The Bucharest Court of Appeal earlier today postponed for the fifth time a final sentence in the court case investigating the Colectiv nightclub fire of October 30, 2015, when 64 people were killed and another 200 were injured. During a rock concert hosted by the club that night, the pyrotechnics show ignited the foam covering the ceiling and walls of the overcrowded venue. Part of the people were killed on the spot, while other died to the burns, the deadly mix of fumes or in the stampede near the exit. The court of first instance handed down sentences between 3 and 11 years in prison to district 4 mayor at the time, Cristian Popescu Piedone, cityhall workers, club owners, firefighters, pyrotechnicians as well as representatives of the pyrotechnics company.

CCR - The Chamber of Deputies and the Senate are today convening in a joint plenary sitting to appoint two new Constitutional Court (CCR) judges, one of them expected to replace the current president of CCR, Valer Dorneanu. The mandates of the two judges expire in June, and under the law, the new judges must be designated at least a month in advance. CCR comprises nine judges, appointed for a mandate of nine years. Of these, three are appointed by the Chamber of Deputies, three by the Senate and three by the president of Romania. The Court replaces a third of its judges every three years.

GOPO AWARDS - A new Gopo Awards Gala will take place this evening in Bucharest, celebrating the best-performing cinema projects in the last year. Some 900 guests are expected to attend. 19 features launched in cinemas or streaming platforms in 2021 have been nominated in 20 categories. This year's edition also celebrates solidarity. Film enthusiasts from around the world are invited to take part in a fund-raising campaign titled "United through Film". All proceeds will go to Ukrainian filmmakers with the help of the International Coalition for Filmmakers at Risk. (VP)