07 November 2025 , 21:55
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Romanian prosecutors are investigating possible fraud involving CO₂ certificates at steel plant Liberty Galați. They suspect that company executives embezzled funds and engaged in fictitious transactions to benefit affiliated entities.
Romanian prosecutors said Friday they are investigating a suspected $300 million fraud involving carbon dioxide (CO₂) emission certificates linked to Liberty Galați, the country’s largest steel plant, which is owned by Indian-born British industrialist Sanjeev Gupta’s Liberty Steel Group.
Prosecutors and special police units carried out raids at several locations in Bucharest and the eastern city of Galați, where the steel plant is based, the Prosecutor’s Office in Bucharest said in a statement. Investigators allege that members of Liberty Galați’s management embezzled company funds and created tax evasion schemes through fraudulent contracts and fictitious loans.
According to prosecutors, an analysis of CO₂ certificate transactions between 2019 and 2022 revealed that the Romanian company did not benefit from the deals, while the state budget also suffered losses.
Authorities claim that two company officials approved a $137 million transfer of CO₂ certificates to two firms, including Russian energy giant Gazprom. In 2021, facing a shortage of certificates, the Romanian steelmaker allegedly repurchased two million certificates from Gazprom and another steel plant in the Czech Republic - both at significantly higher prices - pushing total losses to about $154 million.
Investigators said the transactions were not meant to serve legitimate business goals but were instead used “as a tool for embezzlement and illicit tax optimization,” channeling funds to affiliated companies and shareholders to the detriment of the Romanian plant’s finances.
Prosecutors also allege that another $57 million was siphoned from the company through fake consultancy and management contracts between 2020 and 2022. About $17 million was reportedly paid for non-existent services, while another $40 million went to a Singapore-based company that failed to deliver on its contract.
The prosecutor’s office released a video showing armed police raiding several sites early Friday.
Liberty Steel Group, part of Gupta’s global GFG Alliance, did not immediately respond to requests for comment.
Deputy Editor