A European technology company signs a distribution agreement with a Romanian partner. The relationship deteriorates. The contract contains an arbitration clause, but it is silent on the forum. The company now faces a choice between domestic Romanian arbitration and an international institution such as the ICC. Each path carries distinct procedural rules, timelines, cost structures, and enforcement consequences. Getting this decision wrong at the outset can add months to the process and significantly raise costs.
Commercial arbitration in Romania is governed by civil procedure legislation, which incorporates a dedicated arbitration title aligned with modern international standards. The primary domestic forum is the Curtea de Arbitraj Comercial International (Court of International Commercial Arbitration of Romania, "CICA"), operating under the auspices of the Romanian Chamber of Commerce. International proceedings may be seated in Romania under ICC Rules, UNCITRAL Rules, or other institutional frameworks, with Romanian courts playing a supervisory role over the arbitral process.
This guide walks through the procedural steps for both domestic and international commercial arbitration in Romania, the documentary requirements at each stage. The most common errors made by foreign clients, cost ranges. Additionally, a practical decision checklist for choosing between forums.
Understanding Romania's arbitration system
Romania's arbitration system rests on civil procedure legislation that was comprehensively reformed to bring it into alignment with the Legea Model UNCITRAL (UNCITRAL Model Law) principles. The reform modernised the rules on arbitral tribunal composition, interim measures, and award challenge procedures. Romanian courts retain a limited supervisory jurisdiction. They can set aside awards on specified grounds and handle enforcement applications.
Two tracks are available to parties in dispute. The first is domestic institutional arbitration, primarily through CICA. The second is international arbitration with Romania as the seat of arbitration, or foreign-seated arbitration whose awards are later enforced in Romania under the New York Convention framework.
The distinction matters commercially. Domestic CICA proceedings are conducted predominantly in Romanian. Procedural timelines follow CICA's institutional rules. International proceedings under ICC Rules or UNCITRAL allow parties to select the language, the governing law, and often the arbitral tribunal's composition more flexibly. For cross-border commercial disputes, this flexibility frequently outweighs the cost savings of the domestic route.
Romanian civil procedure legislation also provides for ad hoc arbitration. Parties may constitute an arbitraj ad-hoc (ad hoc arbitral tribunal) without institutional backing. In practice, ad hoc proceedings in Romania carry higher procedural risk. Without an institution managing timelines and fees, delays are more frequent. This route is rarely chosen by international parties who are unfamiliar with the local procedural environment.
For disputes touching corporate governance or shareholder rights, practitioners handling related corporate disputes in Romania will recognise that arbitrability questions often arise at the interface of company law and arbitration legislation. Romanian courts have generally upheld the arbitrability of commercial contractual disputes. Disputes involving mandatory provisions of company legislation require more careful analysis before submitting to arbitration.
Step-by-step procedural timeline
The procedural path differs between CICA domestic proceedings and international institutional arbitration. The steps below apply to a typical CICA proceeding. Differences for international proceedings are noted at each stage.
Step 1 – Verify the arbitration agreement (days 1–7). Before filing, confirm that the contract contains a valid arbitration clause designating CICA or specifying arbitration in Romania. Under Romanian arbitration legislation, the clause must be in writing. An exchange of communications that records the agreement suffices. For international proceedings under ICC Rules, the clause should expressly name the ICC and specify the seat of arbitration.
Step 2 – Prepare and file the request for arbitration (days 7–21). The claimant submits a written request to CICA. The request must identify the parties, describe the dispute, state the relief sought, and include the arbitration agreement. Supporting documents, a filing fee payment, and a statement of the claim value accompany the request. Under ICC Rules, the equivalent document is the Request for Arbitration, filed with the ICC Secretariat. The ICC charges a non-refundable filing fee at this stage.
Step 3 – Constitution of the arbitral tribunal (weeks 3–8). CICA rules allow each party to nominate one arbitrator. The two co-arbitrators then select a presiding arbitrator. If a party fails to nominate, CICA appoints on their behalf. For international proceedings, the ICC Court confirms or appoints arbitrators based on the number agreed and the challenges procedure under ICC Rules. Challenges to arbitrators – on grounds of independence or impartiality – are resolved by CICA or the ICC Court respectively.
Step 4 – Exchange of written submissions (weeks 6–20). After constitution, the arbitral tribunal sets a procedural calendar. The claimant files a full statement of claim. The respondent files a defence and any counterclaim. Reply and rejoinder memorials may follow. Each memorial is accompanied by documentary exhibits and, where applicable, witness statements or expert reports. This phase represents the most variable element in the overall timeline.
Step 5 – Hearing (weeks 20–32 from filing). CICA proceedings typically hold one or two hearings. International proceedings under ICC Rules may include a preliminary conference before the substantive hearing. The arbitral tribunal examines witnesses, receives expert testimony, and hears oral argument. Tribunal-ordered document production – more limited in Romanian-seated proceedings than in common law arbitration – may occur before the hearing.
Step 6 – Deliberation and award (weeks 32–52 from filing). Following the hearing, the arbitral tribunal deliberates and issues the award. CICA rules set a target timeframe for deliberation. The award must be reasoned, dated, and signed by all arbitrators or by a majority with a dissent noted. For ICC proceedings, the award is scrutinised by the ICC Court before dispatch – a quality-control step that adds weeks but improves enforceability.
Step 7 – Award enforcement or challenge (within 30 days of award receipt). A party wishing to set aside a CICA award must apply to the competent Romanian court within the time limit prescribed by civil procedure legislation. Grounds are limited: lack of valid arbitration agreement, improper tribunal constitution, excess of jurisdiction, violation of due process, or conflict with public policy. For enforcement abroad, the creditor initiates recognition proceedings under the New York Convention framework in the target jurisdiction.
To receive an expert assessment of your arbitration options in Romania, contact us at info@ferrazwhitmore.com.
Documentary checklist and common errors by foreign clients
Assembling the correct documentation before filing prevents delays and preserves procedural rights. The following items are required at or shortly after the filing stage.
- The original contract containing the arbitration clause, or a certified copy
- All amendments, addenda, and correspondence that modify the agreement
- Commercial invoices, delivery records, or other evidence of performance
- Corporate authorisation documents confirming the signatory's authority
- Proof of payment of the filing or advance-on-costs fee
Several recurring errors by foreign clients cause avoidable problems. The most frequent is a defective arbitration clause. A clause that names a non-existent institution, omits the seat of arbitration, or is inconsistent between the original and translated contract creates jurisdictional ambiguity. Romanian courts have, in some instances, declined to refer disputes to arbitration where the clause was insufficiently precise.
A second common error is failure to preserve evidence before commencing proceedings. Romanian civil procedure legislation does not provide a broad pre-arbitration discovery mechanism. Once a dispute crystallises, parties sometimes find that key documents have been destroyed, overwritten, or transferred. Interim measures – available from either the arbitral tribunal or Romanian courts under civil procedure legislation – can address this, but only if applied for promptly.
A third error involves the translation of documents. CICA proceedings require Romanian-language submissions. Foreign clients frequently underestimate the cost and time required for certified translation of voluminous commercial records. International proceedings under ICC Rules allow parties to agree on a working language – typically English – which substantially reduces translation burden.
A fourth error relates to arbitrator selection. Foreign parties sometimes nominate arbitrators from their home jurisdiction without verifying whether those individuals are admitted to CICA's panel or whether their nomination complies with CICA rules. An improperly nominated arbitrator may be replaced by institutional appointment, removing the party's tactical advantage in constitution.
Finally, international clients often misread the relationship between Romanian arbitration legislation and EU law. Romania is an EU member state. EU competition law, consumer protection rules, and certain mandatory commercial provisions cannot be displaced by arbitration clauses. A dispute that appears purely contractual may carry mandatory law dimensions that limit what the arbitral tribunal can decide or enforce.
Choosing between local and international forums: a decision framework
The choice between CICA and an international forum such as the ICC is not purely a matter of preference. Several concrete factors should drive the decision.
Contract value and cost proportionality. CICA fee scales are generally lower than ICC advance-on-costs for mid-range disputes. For claims below a certain threshold – typically in the low hundreds of thousands of euros – CICA proceedings are more cost-proportionate. ICC proceedings involve institutional fees plus the higher hourly rates of internationally recognised arbitrators. For high-value or strategically complex disputes, the added cost is frequently justified by ICC's scrutiny process and the resulting award quality.
Counterparty profile. When both parties are Romanian entities and the dispute concerns domestic commercial performance, CICA is the natural forum. When the counterparty is a foreign entity or the contract governs cross-border obligations, an international forum reduces arguments about home-court advantage and procedural familiarity.
Enforcement geography. If the award will be enforced in Romania, CICA proceedings are straightforward. Romanian courts enforce domestic CICA awards through a streamlined procedure under civil procedure legislation. If enforcement is needed in multiple jurisdictions, an ICC award – issued after scrutiny and widely recognised under the New York Convention framework – typically encounters less resistance in foreign courts. A party enforcing a CICA award outside Romania must still satisfy the recognition requirements of the target jurisdiction's courts.
Language and procedural culture. CICA proceedings are conducted in Romanian. A foreign client relying on translated documents and Romanian-speaking counsel bears a procedural disadvantage that is manageable but real. International proceedings allow the parties to select English or another major commercial language, reducing communication friction with the arbitral tribunal.
Speed. CICA target timelines are comparable to mid-tier international institutions. In practice, both forums complete most proceedings within 12 to 24 months. ICC proceedings can extend longer for complex multi-party matters. Ad hoc arbitration under UNCITRAL Rules, while theoretically flexible, lacks institutional time-management and often runs longer than either institution.
The trigger point for switching from CICA to an international forum typically arises when the counterparty is foreign, the dispute involves multiple jurisdictions, or enforcement outside Romania is anticipated. In those conditions, the higher upfront cost of international proceedings is a rational investment against the risk of recognition difficulties later.
For matters involving parallel commercial claims, the interaction between arbitration and court proceedings in Romania is governed by civil procedure legislation's lis pendens and res judicata rules. A party that initiates court proceedings after an arbitration clause has been agreed may find the court declines jurisdiction. Conversely, a party that commences arbitration while court proceedings are pending may face a challenge to the arbitral tribunal's authority. Timing and sequencing of filings requires careful strategic planning.
For a tailored strategy on arbitration proceedings in Romania, reach out to info@ferrazwhitmore.com.
Self-assessment checklist before initiating arbitration in Romania
Before filing a request for arbitration – whether with CICA or an international institution seated in Romania – verify each of the following conditions.
Is the arbitration agreement valid and enforceable? The clause must be in writing and clearly refer disputes to arbitration. Ambiguous language that could be read as permitting either arbitration or court proceedings creates uncertainty. Romanian courts apply civil procedure legislation strictly on this point.
Is the dispute arbitrable under Romanian law? Commercial contractual disputes are generally arbitrable. Disputes involving status, family law, insolvency proceedings, or certain mandatory consumer protections are not. Mixed disputes – part arbitrable, part non-arbitrable – require careful separation of claims before filing.
Has the limitation period been checked? Romanian civil legislation prescribes limitation periods for commercial claims. Filing a request for arbitration after the limitation period has expired is fatal to the claim. The limitation period is interrupted or suspended by specific acts under civil legislation; taking legal advice before filing is essential.
Are interim measures needed? If assets are at risk of dissipation, or if confidential information may be disclosed before the award, interim relief should be sought before or simultaneously with the arbitration filing. Romanian courts have jurisdiction to grant interim measures in support of arbitration proceedings under civil procedure legislation. The arbitral tribunal may also grant interim relief once constituted.
Is the counterparty solvent and locatable? An arbitral award is only as useful as the assets available for enforcement. If the respondent has been reorganised, has transferred assets, or is in or near insolvency proceedings, the interaction between arbitration legislation and insolvency legislation in Romania may affect the enforceability of the award. This intersection is addressed in detail in our guide to litigation and arbitration in Romania.
Has the correct seat been identified? For international proceedings, the seat of arbitration determines the supervisory court, the applicable procedural law, and the nationality of the award for New York Convention purposes. Specifying Bucharest as the seat gives Romanian courts supervisory jurisdiction and produces a Romanian award. Specifying Paris or London produces a French or English award, enforceable in Romania through the New York Convention framework. Each choice has strategic consequences.
A comparison of Romania's arbitration conditions with those in other civil law jurisdictions can also inform the choice of seat. Our analysis of commercial arbitration in Portugal provides a useful reference point for parties weighing alternative seats within the EU.
Frequently asked questions
Q: How long does commercial arbitration in Romania typically take?
A: Domestic arbitration before CICA typically concludes within 12 to 18 months from the filing of the request. Complex matters with multiple parties or voluminous document production may extend this timeline. International arbitration under ICC Rules with a Romanian seat can run 18 to 30 months depending on procedural choices.
Q: Is a Romanian arbitral award automatically enforceable abroad?
A: A common misconception is that a Romanian award circulates freely throughout the EU. In practice, enforcement in foreign courts requires a separate recognition procedure under the New York Convention framework, which Romania has ratified. The award must not conflict with the public policy of the enforcing state, and the arbitration agreement must satisfy formal validity requirements under local law.
Q: What costs should an international business budget for arbitration in Romania?
A: Costs depend heavily on the forum chosen and the value in dispute. Domestic CICA proceedings carry administrative and arbitrator fees calculated on a scale tied to the claim amount. International proceedings under ICC Rules involve separate registration fees, advance on costs, and legal representation fees that typically run into the tens of thousands of euros for mid-sized disputes. Engaging a lawyer in Romania with cross-border arbitration experience is strongly advisable when costs and procedural complexity interact.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our team combines Portuguese civil law expertise with English common law tradition to deliver cross-border arbitration and dispute resolution services in Romania and throughout Central and Eastern Europe. As a law firm in Romania-facing matters, we support international entrepreneurs, institutional investors, and in-house legal teams who need results-oriented counsel across multiple legal systems. The firm's litigation and arbitration practice covers proceedings before both domestic institutions and international forums including the ICC, and our attorneys have advised on commercial arbitration matters across both civil law and common law systems. The firm's Lisbon base provides direct access to EU regulatory conditions, while our common law expertise supports enforcement and arbitration strategies in English-speaking jurisdictions. To discuss your arbitration situation in Romania, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.