Economic developments during the week of July 27–August 3 highlighted the vulnerability of energy infrastructure, the expansion of the defence industry and tighter state scrutiny of corporate transactions.
The exceptionally low level of the Danube forced the shutdown of one reactor at the Cernavodă nuclear power plant, while military drone production could begin in Cluj-Napoca through a Romanian-Ukrainian partnership. The sale of Napolact remains under regulatory review, and unpaid water and sewerage bills in Covasna County have reached RON 9.2 million. Romania also retained its investment-grade credit rating, a new aerospace plant opened in Craiova, and a €150 million support programme was launched for energy-storage capacity.
1. Low Danube levels forced the shutdown of Cernavodă Unit 1: On July 28, Nuclearelectrica carried out a controlled shutdown of Unit 1 at the Cernavodă nuclear power plant and disconnected it from the national electricity system. The measure became necessary because severe drought had pushed the Danube to unusually low levels.
Danube water is also used by the plant’s cooling system, which requires a minimum water level for safe operation. Unit 1 has a capacity of about 700 MW, and its outage increases Romania’s need for electricity imports, particularly during evening peak-demand periods. The incident shows that prolonged drought is now directly affecting not only agriculture and navigation but also power generation.
2. Military drone production could begin in Cluj-Napoca: Romanian company OVES Enterprise and Ukraine’s EDRONE plan to establish a joint military-drone production unit in Cluj-Napoca. The entire manufacturing process would be carried out in Romania, from component integration and the installation of artificial-intelligence systems to testing and preparation for operational deployment.
In the first phase, the plant could produce about 1,000 FPV, reconnaissance and interceptor drones per month with around 30 employees. In the medium term, capacity could rise to 10,000–15,000 units per month, while the initial portfolio of three models could expand to as many as 27 types. The presentation and testing of the first Romanian-made units are planned for autumn 2026.
3. Unpaid water and sewerage bills reached RON 9.2 million in Covasna County: Overdue receivables owed to regional water and sewerage operator Hydrokov have risen to nearly RON 9.2 million. The arrears involve companies, homeowners’ associations and individual customers, with some outstanding balances amounting to tens of thousands of lei.
The largest debt owed by a homeowners’ association is approximately RON 675,000. Individual arrears include more than RON 48,000 in the town of Covasna and around RON 39,000 in Târgu Secuiesc. Hydrokov is tightening collection procedures: after formal notices, it may restrict or suspend services and begin enforcement proceedings. The situation points both to payment difficulties among consumers and to liquidity risks for the utility operator.
4. The Napolact sale remains under regulatory review: The sale of FrieslandCampina’s Romanian operations to Hungary’s Bonafarm Group has not yet been completed. The transaction includes the Napolact brand and the production facilities in Cluj-Napoca and Târgu Mureș.
In addition to the competition procedure, the transaction is being reviewed by the commission responsible for examining foreign direct investments. Romania’s Competition Council cannot conclude its assessment until the national-security review has been completed. The change of ownership at a business employing nearly 400 people is important for local milk suppliers, the Transylvanian production plants and the structure of Romania’s dairy market.
5. A new Urban Planning and Construction Code was adopted: Parliament adopted a new code consolidating the rules on spatial planning, urban development and construction. The legislation brings together provisions from 21 separate regulations and provides for a nationwide digital system to manage urban-planning certificates, official approvals and building permits.
According to government estimates, the time needed to issue building permits could fall from the current four to eight months to around 65 days. Adoption of the code was also a milestone under Romania’s National Recovery and Resilience Plan, linked to €972 million in EU funding. Faster and more predictable procedures could reduce the administrative costs of real-estate and industrial investments.
6. Fitch kept Romania’s rating at investment grade: Fitch Ratings maintained Romania’s sovereign debt rating at BBB– with a negative outlook. This is the lowest investment-grade rating, meaning that any further downgrade would place the country in the speculative, commonly known as “junk”, category.
The agency expects Romania’s 2026 budget deficit to equal 5.9% of GDP. The negative outlook reflects political uncertainty, risks surrounding the implementation of fiscal reforms and difficulties in drawing down EU funds. A downgrade would increase the state’s borrowing costs and could indirectly affect interest rates on household and corporate loans.
7. Diehl Aviation opened an aerospace plant in Craiova: Germany’s Diehl Aviation inaugurated a new production facility in Craiova. The plant, covering more than 12,000 square metres, will manufacture composite cabin components for commercial aircraft, insulation materials and tanks for onboard water and waste systems.
Series production could begin in autumn 2026 with around 75 employees. In the medium term, the company plans to raise employment to as many as 500 and has reserved additional land for a later expansion. The investment introduces higher-specification aerospace supply capacity into Romania’s manufacturing sector.
8. Parliament adopted a tax amnesty for retroactively assessed VAT: The Chamber of Deputies, acting as the decision-making chamber, adopted legislation that could exempt affected entrepreneurs from paying VAT assessed retroactively. The measure concerns business owners whose VAT registration had previously been cancelled and who therefore did not collect the tax from customers, only for ANAF to claim it later for periods of up to five years.
In some cases, the assessed liabilities reached tens of thousands of euros. The measure cannot yet be applied: it must be promulgated by the president, after which ANAF will have 30 days from publication to draw up the implementation procedure.
9. A €150 million programme will support battery energy storage: The final rules were published for a state-support programme covering investment in standalone battery energy-storage systems. Financed through the Modernisation Fund, the scheme has a total budget of €150 million for the development of new utility-scale storage capacity.
A company may receive up to €15 million, while the national objective is to install at least 2,174 MWh of new storage capacity. These investments could reduce grid problems caused by variable solar and wind generation, limit peak-time electricity imports and improve the flexibility of the power system.
10. An agreement was reached to sell the Gazprom-branded filling stations in Romania: Serbian company Naftna Industrija Srbije reached an agreement to sell its Romanian subsidiary, NIS Petrol. The business operates 19 filling stations under the Gazprom brand in Romania and also holds oil and natural-gas exploration interests in the western part of the country.
The buyer’s identity has not yet been disclosed, and completion of the transaction is subject to regulatory and sanctions-related approvals. NIS still has indirect ownership links to Russian energy interests, meaning that the transaction is shaped not only by commercial considerations but also by geopolitical and energy-security factors.
Summary
The week’s economic developments highlighted both the emergence of new industrial capacity and the vulnerability of existing systems. The Cernavodă reactor shutdown showed that extreme weather can directly affect the country’s electricity supply, while the energy-storage programme is intended to make the system more flexible. The Cluj drone plant and the aerospace investment in Craiova could bring more technologically advanced manufacturing to Romania. At the same time, the Napolact review and the sale of the Gazprom-branded filling stations show that major corporate transactions are increasingly shaped by national-security and geopolitical considerations. In Covasna County, RON 9.2 million in utility arrears highlights the financial difficulties faced by households and companies as well as the pressure on public-service providers.
As a number of major economic developments are continuing in parallel, readers interested in any particular subject are encouraged to search for the relevant terms online to access further analysis and additional details.
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