Commercial Arbitration in Romania: A Guide for Foreign Businesses

Legal position as at: 24 October 2026

When a commercial relationship with a Romanian partner breaks down, the state courts are not the only forum. If the contract contains a valid arbitration clause, the dispute can be decided by an arbitral tribunal, and the award can be enforced in Romania much like a court judgment and, under the New York Convention, in most other countries. This guide explains what Romanian law requires, how to draft a clause that works, which institutions are available and what happens after the award.

The legal framework

Arbitration seated in Romania is governed by Book IV of the Romanian Civil Procedure Code (Law no. 134/2010, republished), starting with Article 541. The Code describes arbitration as an alternative jurisdiction of a private nature (Article 541(1)). The parties and the tribunal may set procedural rules that differ from ordinary court procedure, provided they do not breach public policy or mandatory provisions of law (Article 541(2)).

Where the arbitration has a foreign element, Book VII of the Code adds specific rules for international arbitration. An arbitration seated in Romania is treated as international if the dispute arises from a private-law relationship with a foreign element (Article 1111(1)). Those rules apply when the seat is in Romania and at least one party had no domicile, habitual residence or registered office in Romania when the arbitration agreement was concluded, unless the parties have excluded them in writing (Article 1111(2)).

Recognition and enforcement of awards made abroad are dealt with in Articles 1124 and following of the Code and in the 1958 New York Convention, to which Romania is a party.

Which disputes can go to arbitration

Persons with full legal capacity may agree to arbitrate their disputes, except those concerning civil status, legal capacity, succession, family relations and rights the parties cannot freely dispose of (Article 542(1)). Ordinary commercial disputes, such as unpaid invoices, supply and distribution contracts, construction, share purchase agreements and joint ventures, are generally arbitrable.

Two points matter for investors dealing with the public sector:

• the State and public authorities may conclude arbitration agreements only where a law or an international convention to which Romania is a party authorises them (Article 542(2));
• public-law legal entities that also carry out economic activities may agree to arbitration, unless the law or their founding act provides otherwise (Article 542(3)).

If your counterparty is a public body, check its power to agree to arbitration before you rely on the clause.

Drafting the arbitration clause

Most disputes about arbitration start with a weak clause. Romanian law sets a few formal conditions that a foreign template may not meet.

Written form. The arbitration agreement must be in writing, otherwise it is null. An exchange of correspondence in any form, or an exchange of procedural documents, satisfies this requirement (Article 548(1)).

Notarial form for real estate. If the arbitration agreement concerns a dispute over the transfer of ownership of, or the creation of another real right over, immovable property, it must be concluded in authenticated notarial form, under sanction of absolute nullity (Article 548(2)). Investors acquiring land or buildings in Romania should keep this in mind.

Appointment of arbitrators. An arbitration clause must indicate how the arbitrators are to be appointed, under sanction of nullity. In institutional arbitration, a reference to the institution or to its rules is sufficient (Article 550(1)).

Separability. The validity of the arbitration clause is independent of the validity of the main contract (Article 550(2)). Where there is doubt, the clause is interpreted as covering all disputes arising from the contract or legal relationship to which it refers (Article 550(3)).

Number of arbitrators. The parties decide whether the dispute goes to a sole arbitrator or to several, always in odd numbers. If they say nothing, three arbitrators decide: one appointed by each party and a presiding arbitrator chosen by the two co-arbitrators (Article 556).

A workable model clause for an institutional arbitration reads:

"Any dispute arising out of or in connection with this contract, including its validity, interpretation, performance or termination, shall be finally settled by arbitration administered by the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania, in accordance with its Rules of Arbitration in force at the date of the request for arbitration."

The clause should then state the number of arbitrators (one or three), the seat of arbitration (city and country), the language of the proceedings and the law governing the contract.

Use the model clause published by the institution you choose and adapt it, rather than combining wording from several sources. Name the institution exactly as it is called; a clause that refers to an institution that does not exist under that name invites a jurisdictional fight.

Choosing the seat and the institution

The seat is a legal choice, not only a venue for hearings. It determines which procedural law governs the arbitration and which state courts have jurisdiction to set aside the award. With a seat in Romania, Romanian procedural law applies and setting-aside proceedings go to the Romanian court of appeal.

Institutions often considered for disputes with a Romanian element include:

• the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania (CCIR), in Bucharest, which administers both domestic and international arbitrations under its own Rules of Arbitration. The current Rules, adopted in 2018, also provide for an emergency arbitrator for urgent interim measures before the tribunal is constituted;
• the ICC International Court of Arbitration, whose rules permit a seat and hearings in any country, including Romania;
• the Vienna International Arbitral Centre (VIAC), often chosen in contracts with partners from Central and Eastern Europe.

The right choice depends on the value at stake, the languages of the documents, where the debtor's assets are and the costs each institution charges. Fee schedules are published by the institutions and should be checked before the clause is signed.

How long the arbitration may last

Romanian law contains a default time limit that foreign parties often overlook. Unless the parties have agreed otherwise, the tribunal must render its award within six months of its constitution, failing which the arbitration lapses (Article 567(1)). The parties may agree in writing to extend the time limit, and the tribunal may extend it once, for good reason, by up to three months (Article 567(3) and (4)).

Lapse is not automatic. A party that wishes to rely on it must declare so in writing at the first hearing to which it was duly summoned; otherwise the right is lost (Article 568(1)). Institutional rules frequently set their own timetable, which counts as the parties' agreement. Check which regime applies to your case at the outset.

The main stages of the proceedings

Institutional rules differ in detail, but most arbitrations follow the same sequence:

Challenging an award made in Romania

An award made in Romania can be set aside only by an action for annulment and only on the grounds listed in Article 608(1) of the Code. These include: the dispute was not arbitrable; there was no valid arbitration agreement; the tribunal was not constituted in accordance with the agreement; a party was absent from the hearing and was not duly summoned; the award was rendered after the time limit although lapse had been invoked; the tribunal ruled on matters not submitted or awarded more than was claimed; the award lacks reasons or the operative part, or is not signed; and the award breaches public policy, good morals or mandatory provisions of law.

Irregularities that were not raised in time during the arbitration can no longer be invoked (Article 608(2)). Only documents may be submitted as new evidence in support of the grounds for annulment (Article 608(3)).

The action must be filed with the court of appeal within one month of communication of the award (Article 611(1)). The court of appeal's judgment can be challenged by recourse (Article 613(4)). The setting-aside court does not re-hear the merits of the dispute except in the situations and limits laid down in Article 613(3).

Enforcing the award in Romania

An arbitral award constitutes an enforceable title and is enforced in the same way as a court judgment (Article 615). The creditor does not need a separate court decision on the merits: the enforcement request goes to a court bailiff (executor judecătoresc), and the enforcement procedure is approved by the competent court as in any other enforcement.

The right to obtain enforcement is subject to a limitation period of three years, unless the law provides otherwise. For arbitral awards, the period runs from the date the award becomes final (Article 706(1) and (2)). A creditor who waits too long after the award risks losing the right to enforce it.

Enforcing a foreign award in Romania and a Romanian award abroad

An award made in another state is a foreign award for Romanian law (Article 1124). It is recognised and may be enforced in Romania if the subject matter is arbitrable under Romanian law and the award does not contain provisions contrary to Romanian private international law public policy (Article 1125).

The application for recognition and enforcement is filed with the tribunal (tribunal) for the area where the party against whom the award is invoked has its domicile or registered office; if that cannot be determined, the Bucharest Tribunal has jurisdiction (Article 1126). Recognition and enforcement may be refused only if the opposing party proves one of the grounds in Article 1129, which follow Article V of the New York Convention: incapacity of the parties, invalid arbitration agreement, lack of proper notice or inability to present the case, irregular constitution of the tribunal or procedure, an award beyond the scope of the agreement, or an award that is not yet binding or has been set aside or suspended at the seat.

Romania acceded to the New York Convention in 1961, and the Convention has 172 contracting states. Romania applies it with three reservations: to awards made in another contracting state, to awards from non-contracting states only on the basis of reciprocity, and only to disputes considered commercial under Romanian law. A Romanian award can therefore be enforced in most of the countries where a debtor may hold assets, subject to the local procedure of the enforcing state.

Practical checklist before you sign or start an arbitration

• Confirm that the counterparty, especially a public entity, may validly agree to arbitration.
• Use the chosen institution's model clause and name the institution exactly.
• State the seat, the language, the number of arbitrators and the governing law.
• If the contract involves real estate rights, have the arbitration agreement executed in notarial form.
• Decide in advance whether you want confidentiality and expedited or emergency procedures, and check that the chosen rules provide them.
• Before starting proceedings, check whether a default time limit applies and plan the timetable accordingly.
• Locate the debtor's assets early: they determine where the award will need to be enforced.

When to seek legal advice

Legal advice is most useful at two moments: when the arbitration clause is negotiated, and before any step in a dispute that is already open, particularly when a time limit is running (lapse, annulment, enforcement). Our practice assists clients with drafting dispute resolution clauses, arbitration proceedings and the recognition and enforcement of awards in Romania.

This article provides general information on Romanian law as at the date shown above and is not legal advice for a specific case. If you would like us to review your situation, please write to