Romania Arbitration award to LSG Building Solutions GmbH and others (ICSID Case No. ARB/18/19)
The Commission has published in the Official Journal (OJ) the opening of an in-depth investigation into the arbitration award ordering Romania to pay compensation to LSG Building Solutions GmbH and others for regulatory changes to its 2008 measure establishing a green certificates support scheme to encourage the production of renewable energy. The arbitral award ordered Romania to pay EUR 42.2 million in compensation to the claimants, plus interest and a contribution towards the costs of the arbitration proceedings, following a finding that Romania had breached the Energy Charter Treaty.
The Commission’s preliminary view is that the arbitration award and its implementation constitute State aid within the meaning of Article 107(1) TFEU. Furthermore, the Commission considers that Romania has not presented arguments that could justify the compatibility under Article 107(3) TFEU. The Commission considers, at this stage, that the arbitral award breaches EU law, as it was issued by a tribunal that is not part of the EU judicial system and cannot ensure the uniform and effective application of EU law. Allowing such a tribunal to issue binding decisions affecting the EU legal order would undermine the autonomy of EU law, the allocation of competences established by the Treaties and the system of judicial protection established by the Treaties.
The decision is available under the case number SA.113263 (2024/NN) in the State Aid Register.