Legal landmark in Romania: Popescu & Asociatii Secures First Full Expropriation Compensation – Over 60 Million Lei Granted to Viorelo International

Popescu & Asociatii has achieved an unprecedented legal victory that fundamentally transforms expropriation law in Romania. Acting for Viorelo International, a strategic investor in certified organic agriculture with majority European capital, the firm successfully upheld compensation exceeding 60 million lei, the largest award ever granted by a Romanian court in expropriation proceedings. The ruling sets a new benchmark in how such disputes are handled in the national legal system.

For the first time in Romania, a court has acknowledged that compensation for expropriation must cover not only the nominal value of the land, but also the full extent of the business losses incurred. This decision marks a paradigm shift in Romania’s approach to expropriation, underscoring the obligation to uphold property rights and fully compensate sustainable investments, particularly in sectors of public interest such as organic agriculture.

"The ruling represents a positive jurisprudential shift in Romanian case law on expropriation, particularly given the European Court of Human Rights' numerous recommendations in this area. It must be recognized, even at a conceptual level, that Romania, as a member of the European Union, has a duty to protect all forms of investment.  The principle of fair and equitable compensation in cases of expropriation - providing restitution that truly reflects market realities and the seriousness of the loss - is a fundamental standard for ensuring stability, sustainability, and continued attractiveness to foreign investors.", stated Octavian POPESCU, Managing Partner, Popescu & Asociații.

"This ruling is a genuine turning point for Romanian justice," said Andreea MIHALACHE, Partner Popescu & Asociații. "It not only corrects a deeply unfair practice but establishes a clear standard: expropriation cannot mean sacrificing an investment's true value, especially in cases of strategic and sustainable projects."

This outcome is the result of a rigorous legal strategy, carefully designed and implemented by an interdisciplinary team of specialists in complex litigation, real estate law, economic valuation, and administrative law at Popescu & Asociatii. Coordinated by Octavian POPESCU, Managing Partner, and Andreea MIHALACHE, Partner, the team succeeded in proving the severe negative impact on a long-term investment and secured substantial compensation that accurately reflects the full extent of the client’s losses.

This victory reinforces Popescu & Asociatii's position as a leader in complex litigation, with a clear commitment to protecting private investments within Romania's evolving legal landscape.