Doing Business in Romania
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Having been involved in business in Romania for some 11 years, I look back with some amusement at my first trip to Constanta in early 1990, and to the advice of my more experienced "Romanian hands" colleagues at that time. In essence, the advice was to prepare for the worst, and take toilet paper, cigarettes, whisky, US Dollars (new notes), Mars bars, biscuits and a sense of humour!ии.and, oh yes, be aware of the corruption. On my return, questions from colleagues and dinner party guests alike tended to focus on orphanages, Ceaucescu, corruption and, of course, Dracula!
Of course, virtually all the advice (and the discussion topics on my return) was irrelevant, and my initial impression (albeit in a power cut and lorry drivers' strike) was of warmth and kind hospitality from a well educated population emerging from many years of oppression - initial impressions which have only been strengthened over the past 11 years.
Any businessman visiting Romania for the first time will find a modern arrivals terminal, with little formality save for passport control (visas for EU nationals were abolished at the start of 2001). Emerging from the airport, it is best to take a licensed taxi or hotel car, or to have your local partners organise a driver while you are in Romania. Transport outside Bucharest is best undertaken by rail (first class travel is recommended and is cheap) or internal flight (Tarom generally operate a modern fleet of ATR aircraft for internal flights).
In business, English is widely spoken (particularly within the private sector business community), failing which French (within certain Government circles). The business culture is based on a civil law based system (originating in the late 1800's and based on the Napoleonic Code), supplemented by recent legislation post Ceaucescu. Negotiations can tend to be laboured, and one should generally not expect for haste, particularly in dealing with Government where there can tend to be a reluctance to accept responsibility for decision making. In the negotiation process it is also recommended to maintain your final position when it is reached, even if further concessions are demanded - movement on one point can be interpreted as a willingness to move on others (even if previously agreed)!
Socially, the country offers great enjoyment, from the operas and concerts of Bucharest to the beaches of the coast and skiing in the mountains. The people are friendly, and travel throughout the country is safe.
As in any country, there can be frustrations in doing business (the failure to make progress to a western European transaction timetable is often criticised), so the sense of humour recommended by my colleagues in "early days" is helpful (most particularly as it will be appreciated by your business partners). Finally, of course, you may get the opportunity to visit what is commonly considered to be Dracula's castle (Bran castle in Transylvannia) - at least then you will be able to deal factually with dinner party conversation, while correcting the misconceptions of a country which remains rich in opportunity.
Campbell Steedman is a partner in the firm of Norton Rose, Solicitors. He has extensive experience of developing markets transactions and of international privatisation. His specific areas of expertise are: negotiation and structuring of joint venture transactions; specialist in Central and Eastern Europe; negotiation of acquisitions of companies and business on behalf of international corporations investing in developing markets; advising international corporations on establishment of operations and greenfield sites in Central and Eastern Europe; developing markets privatisation work, including trade sales and public offerings; advising on the regulatory framework for investment and advising international investment funds specialising in investment in developing markets. He is well know to both Government and investors involved in the Romanian privatisation programme and continues to be involved in the region.
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