Romanian prosecutors have launched an investigation into an alleged USD 300 mln fraud involving CO2 emission certificates tied to Liberty Galati, the country’s largest steel plant owned by Sanjeev Gupta’s Liberty Steel Group.
Prosecutors and special police units conducted raids in Bucharest and Galati, alleging that company executives embezzled funds and engaged in tax evasion through fraudulent contracts and fictitious loans.
Authorities said a review of CO2 certificate transactions from 2019 to 2022 showed Liberty Galati gained no real benefit, while the state also incurred losses. Two company officials allegedly approved the USD 137 mln transfer of certificates to two firms, including Russia’s Gazprom. In 2021, the steelmaker reportedly repurchased two mln certificates from Gazprom and a Czech steel plant at inflated prices, resulting in losses of about USD 154 mln.
Prosecutors claim the transactions served as tools for embezzlement and illicit tax optimization, funneling money to affiliated firms and shareholders. An additional USD 57 mln was allegedly diverted through fake consultancy and management contracts between 2020 and 2022, including USD 17 mln for non-existent services and USD 40 mln to a Singapore-based company that failed to deliver.
Liberty Steel Group said it is fully cooperating with authorities and firmly denies any allegation of wrongdoing.
