Romgaz completing the takeover of the Bahamas-registered ExxonMobil Exploration and Production Romania Limited for nearly €1bn in August reversed the direction of net FDI and made Romania a net foreign investor as the FDI outflows surpassed the inflows.
This happens very rarely and almost always as a result of accounting effects — reinvested profits registered at different dates, or flows of loans between foreign investors and local subsidiaries.
In August this year, however, the investments by Romanian residents (mainly Romgaz) abroad amounted to €946mn while investments by foreign residents in Romania were only €849mn.
As a result, the 12-month FDI to Romania dropped to €9.88bn in August from €10.57bn in July but was still almost double compared to €5.83bn as of August 2021.
Out of this, genuine FDI — namely equity investments — amounted to only €117mn.
The rest was either reinvested profits (€5.39bn) or loans taken by local subsidiaries of foreign groups (€4.37bn).