Belgian court ruling in Pfizer case leads to garnishment of funds destined for Romania via ROMATSA

Acting Finance Minister Alexandru Nazare explained on Thursday that the freezing of Romanian air traffic authority ROMATSA's accounts was not imposed because the company is a party to the litigation with Pfizer, but because Pfizer obtained in a Belgian court a ruling regarding the amounts that were due to reach Romania."Today I provided my fellow ministers, in the government meeting, the details held by the Ministry of Finance regarding the situation created by the garnishment set on ROMATSA's accounts as an effect of the litigation with Pfizer. It is important, first of all, to clarify the mechanism. EUROCONTROL is the European organisation through which the fees paid by airline companies when they use a state's airspace are collected. In Romania's case, these sums are collected through EUROCONTROL and then transferred to the Romanian side, via ROMATSA, for air-navigation services. The freezing of the accounts was not instituted because ROMATSA would be a party to the litigation with Pfizer, but because Pfizer obtained, in a court in Belgium, a measure over these amounts that were due to reach Romania," Nazare said in a Facebook post.He added that at this stage, ROMATSA must ensure the necessary legal representation to defend itself in the procedures concerning the effects of the garnishment on the financial flows administered through EUROCONTROL. Also, Nazare says the Finance Ministry will support these efforts, within its remit, through the required legal and budgetary analysis and through coordination with the institutions involved."The general action strategy belongs to the Government of Romania, which will approve the directions to follow after evaluating the legal, budgetary and institutional options," the official stated.In his opinion, any decision must be taken in an orderly, legal manner and with attention to the impact on the budget and on the interests of the Romanian state."The Finance Ministry has the role of ensuring the representation of the Romanian state in the procedures related to the litigation with Pfizer and of substantiating the options that will be presented to the government. Our objective is to defend the patrimonial interests of the state, to reduce the risk of extending enforcement and to find a solution compatible with the fiscal-budgetary responsibility Romania must maintain," Nazare underscored.The "Romanian Air Traffic Services Administration" Corporation - ROMATSA announced on Thursday in a statement having been notified by EUROCONTROL regarding the institution of a precautionary garnishment measure as part of an enforcement procedure initiated by Pfizer Romania SRL against the Romanian state, for a claim of over 3.4 billion RON.According to the statement, the notification sent by EUROCONTROL concerns the implementation of the obligations incumbent on this organisation as a third-party garnishee, under applicable legal procedures, and concerns the amounts that EUROCONTROL collects for the provision, by ROMATSA, of en-route air-navigation services.The statement also notes that the notification represents a procedural stage of an enforcement action that concerns the state, not ROMATSA itself, although its revenues are affected."This is the third situation of this kind faced by ROMATSA through the collection mechanism administered by EUROCONTROL, after the precedents recorded in the Micula case, in 2015 and 2019," the administration's representatives said.Under the given circumstances, ROMATSA has initiated all necessary measures to protect the institution's interests and to clarify the legal and operational implications of this notification, the statement adds. "All legal and financial consequences of this situation are currently being analysed, together with the competent authorities and with specialised legal assistance. At this moment, the air-navigation services provided by ROMATSA are carried out under normal conditions, without any impact on the safety, continuity or quality of air-traffic services," ROMATSA stated.Last month, Nazare said that Romania is trying to reduce the impact on the state budget of the payment obligation of approximately EUR680 million to Pfizer, after losing a lawsuit concerning the purchase of COVID-19 vaccines, and is seeking a better solution than immediate full payment.A court in Brussels ruled, at first instance, that Poland and Romania must pay outstanding balances for COVID-19 vaccines ordered from the Pfizer/BioNTech pharmaceutical group, amounting to EUR1.3 billion and EUR600 million, respectively.The American pharmaceutical company Pfizer sued the two countries in autumn 2023 to enforce these procurement contracts, which Poland and Romania refused to fully honour after the end of the pandemic.