On November 7, investigators from Romania’s Directorate for Investigating Organized Crime and Terrorism (DIICOT) carried out raids at the Liberty Galati steel complex as part of a probe into suspected large-scale fraud and tax evasion. Following the DIICOT raids, prosecutors opened an investigation into a suspected $300 million fraud involving CO₂ emission certificates connected to Liberty Galati, the country’s largest steel producer and part of Liberty Steel Group. According to the preliminary findings, the company is believed to have engaged in transactions between 2019 and 2022 that did not reflect genuine industrial activity and instead diverted substantial financial value to affiliated entities.
According to the documents, company executives may have authorized the transfer of $137 million in CO₂ certificates to two outside firms, one linked to Russia’s Gazprom and the other to a steel plant in the Czech Republic, and later bought the certificates back at much higher prices. This practice is estimated to have caused about $154 million in losses for the company and hurt the Romanian state budget.
Investigators also highlight additional losses totaling around $57 million, allegedly routed through fictitious consultancy and management service contracts. Of this amount, roughly $17 million was paid for services that were never delivered, while approximately $40 million was transferred to a Singapore-based entity without any demonstrable economic justification.
As the investigation remains ongoing and no conclusions have been reached, these developments contribute to an increasingly uncertain outlook for Liberty Galati, particularly in light of the company’s existing bankruptcy proceedings. Meanwhile, the ownership group has not issued any official statement regarding the allegations and continues to remain silent.
