International business relationships often lead to complex legal disputes when expectations are breached or contracts violated. Foreign companies operating in Romania—via partnerships, supply contracts, or joint ventures—must navigate local laws, international treaties, and dispute resolution mechanisms to handle cross-border commercial conflicts effectively.
This guide outlines the key legal options available to foreign businesses facing commercial disputes in Romania. These include court litigation, arbitration, and enforcement of foreign judgments and arbitral awards.
Enforcing foreign judgments in cross-border disputes
International companies frequently encounter challenges when trying to enforce foreign court decisions against Romanian entities. The rules vary depending on the origin of the judgment.
EU judgments
Judgments from EU member states fall under the Brussels I bis Regulation (EU Regulation No. 1215/2012), which governs recognition and enforcement. These judgments are automatically recognised and enforceable in Romania. No declaration of enforceability is required, which speeds up the process and avoids the complexity of general international rules.
To enforce the decision, the creditor submits a certified copy of the judgment and a standard certificate from the original court. Romanian courts may refuse enforcement only in rare situations—such as when the judgment clearly violates Romanian public policy.
Non-EU judgments
Judgments from non-EU countries are subject to Romanian national laws—specifically, the Civil Procedure Code and Book VII of the Civil Code on private international law. If no bilateral or multilateral treaty applies, Romanian courts require an exequatur procedure. This process involves judicial checks on factors like the finality of the decision, adherence to procedural fairness, and reciprocity between Romania and the issuing country.
Arbitration as a dispute resolution tool in cross-border disputes
Many cross-border B2B contracts with Romanian parties include arbitration clauses. Romania’s participation in the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards supports the enforceability of international arbitral rulings.
Arbitration offers several benefits:
- Neutral forum: Parties can avoid local court bias and agree on the arbitration seat.
- Confidentiality: Proceedings remain private, protecting sensitive information.
- Enforceability: Arbitral awards often face fewer barriers than court judgments.
Parties may use global institutions like the International Chamber of Commerce (ICC) or LCIA, or choose Romania’s Court of International Commercial Arbitration, which conducts proceedings in Romanian or English.
Litigating in Romanian courts: what foreign companies should expect
When arbitration is unavailable or not selected, foreign companies may pursue litigation in Romania under the Civil Procedure Code. The court’s jurisdiction depends on the contract’s clauses or general rules tied to the defendant’s location.
Romanian courts rely heavily on documentary evidence and written pleadings. They require official translations of foreign-language documents and strictly enforce procedural timelines. While the process may be slower—especially at the appellate level—delays can also occur during enforcement if the defendant is uncooperative.
Key considerations for cross-border dispute strategy
Companies involved in disputes with Romanian entities must shape their strategy around jurisdiction, applicable law, evidence gathering, and enforcement.
Carefully worded jurisdiction clauses help prevent disputes over venue, especially when cases might arise in multiple countries. Romanian courts usually uphold these clauses unless they conflict with public policy.
Contracts should clearly define the applicable law—whether Romanian, foreign, or international. In the absence of such provisions, Romanian law will likely apply by default.
Since Romanian litigation depends on documents, companies should keep well-organised records, digital logs, and signed communications. For enforcement, identifying a debtor’s Romanian assets and financial status is crucial.
Conclusion: cross-border dispute resolution requires local expertise
Resolving cross-border commercial disputes in Romania demands a mix of international legal knowledge and local experience. Whether enforcing foreign judgments, litigating, or participating in arbitration, foreign companies must act strategically and without delay.
Working with a Romanian legal team familiar with international dispute resolution boosts compliance and increases the chance of success. The right legal approach—be it litigation, arbitration, or negotiation—helps safeguard commercial interests and maintain valuable business relationships.