Romania Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in romania, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Defense Industry
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Overview 

The Romanian government has emphasized its commitment to modernizing its armed forces, enhancing capabilities to meet NATO obligations, and addressing both domestic and international security challenges. The Strategic Defense Review (SDR, 2020) outlines the country’s security approach, focusing on territorial defense, cybersecurity, and multinational cooperation. According to the SDR, the Romanian Army by 2040 will feature a flexible, multi-domain force structure with a wide range of capabilities tailored to the 21st century. Through the Defense White Paper, policymakers aim to facilitate the realization of the Romanian government’s defense objectives to ensure the security of citizens and the protection of territory, values, and national interests. Simultaneously, the Defense White Paper is framed within a new strategic paradigm, with the goal of strengthening defense and deterrence posture based on five essential elements:

1. High-tech capabilities
2. Highly educated and trained human resources
3. A strong domestic defense industry
4. Developing an institutional culture focused on knowledge and innovation; and
5. Resilience.

National Defense Industry Strategy 2024 – 2030

The recently approved National Defense Industry Strategy 2024 – 2030 is a strategic document that outlines Romania’s ambitions to enhance its defense sector’s capabilities, ensuring not only national security but also a competitive position within the global defense market. Recognizing the rapidly evolving nature of global threats, the strategy emphasizes the need for cutting-edge technology and innovation. The document focuses on digital transformation, including investments in cybersecurity and artificial intelligence, and prioritizes research and development, aiming to cultivate a homegrown defense industry that is both self-sufficient and ready for export. Furthermore, the strategy underscores the importance of collaboration and partnerships. It advocates strengthening alliances with the U.S. and other NATO partners as well as other European Union countries while fostering a collaborative environment.

Romanian Defense Budget

World military expenditure increased for the ninth consecutive year in 2024, reaching a total of $2,443 billion. Romania has consistently raised its defense budget, surpassing the 2% NATO threshold for the eighth consecutive year. In 2024, the defense budget was approximately €8.6 billion, accounting for 2.3% of GDP, and the budget structure reflects a growing interest in substantial investments in military capabilities. In 2025, the government allocated 2.24% of GDP for the defense budget. As a share of the overall defense budget, Romania’s acquisition spending is expected to rise significantly from 33.8% in 2020 to 45.2% by 2029. This percentage is driven by the need to replace outdated equipment and efforts to revitalize domestic defense production. 

The Endowment plan for the Romanian Armed Forces 2025-2034

Through the endowment plan for the Romanian Army 2025-2034, approved by the Romanian Supreme Defense Council in September 2024, the state promotes a process of transformation, re-technologization, and adaptation of the defense industry by attracting new high-tech solutions and expertise through collaboration with foreign companies. Key procurement programs include modernizing air force capabilities with fifth-generation fighter jets, enhancing naval strength, modernizing ground forces, and developing cyber and space capabilities. Upcoming acquisitions present significant opportunities for both foreign and domestic defense companies across various fields.

Opportunities 

Among the main opportunities ahead are the strategic objectives of strengthening sovereign capability, acquiring domestic companies, modernizing defense programs, advancing technology, transforming digitally, and developing cybersecurity capabilities, as well as attracting foreign direct investment. Additionally, international defense cooperation and the North Atlantic Treaty Organization (NATO)/European Union (EU) frameworks offer numerous funding and technological opportunities.
The allocation of resources for the transformation, modernization, and enhancement of the capabilities and structures of the Romanian Armed Forces will proceed according to the priorities outlined in the transformation, development, and procurement program for the Romanian Armed Forces through 2026 and beyond. This program encompasses the build-up and replenishment of stocks. 

Currently, Romania’s Ministry of Defense (MOD) is prioritizing Foreign Military Sales (FMS) cases as the main option for acquisition. International companies may be invited to contribute to this goal voluntarily under FMS cases or through the offset law for all commercial contracts exceeding €2 million ($2.35 million). In recent years, national security interests have been cited concerning supply security as a mandatory criterion for awarding contracts in these cases, with industrial cooperation or offset obligations established from the beginning. The Romanian Parliament must approve defense acquisitions exceeding €100 million ($110 million).

The Romanian Ministry of Defense (MOD) advertises tender, and contract opportunities valued at over RON 1,000, or approximately $200, on the Electronic System of Public Procurement (http://e-licitatie.ro/pub) (SEAP), the electronic tendering portal. Access to SEAP and registration are free of charge. For subcontracting opportunities, companies should engage directly with the defense contractor listed in the contract award. Additionally, some opportunities are also available on https://ted.europa.eu/.

Current defense procurement priorities encompass tracked and wheeled armored vehicles; artillery systems; missile systems and rockets; fighter aircraft; medium and heavy helicopters; unmanned aerial systems; C4ISTAR systems; satellite communication and surveillance services; ammunition manufacturing; and infrastructure such as air bases and military sites.

Challenges

U.S. companies seeking to enter Romania’s defense market face several challenges, despite Romania’s strategic importance as a NATO ally and its commitment to modernizing its defense capabilities. 

These include:

  • Fragmented Procurement Processes: Romania’s defense procurement system is often characterized by delays and inefficiencies. Political turnover and bureaucratic hurdles can slow decision-making, making it difficult for companies to navigate the system and secure contracts.
  • Lack of Transparency: Oversight of large-scale defense projects can be unclear, with limited transparency in procurement processes. This can create uncertainty for foreign companies, particularly those unfamiliar with Romania’s regulatory environment.
  • Preference for Local Partnerships: Romania increasingly favors partnerships with local defense and IT firms for public tenders. U.S. companies may need to establish strong relationships with Romanian firms to compete effectively in the market.
  • Budgetary Constraints: While Romania has committed to increasing defense spending to meet NATO’s  5% of GDP target, budgetary limitations can still impact the scope and scale of procurement projects. This may lead to last-minute prioritization of certain programs over others, affecting opportunities for U.S. companies.
  • Competition from European Firms: U.S. companies face strong competition from European defense firms, which may benefit from alignment with EU defense initiatives.
  • Personnel: Lingering Recruiting and Retention challenges across the services can hinder Romania’s ability to acquire and integrate new defense platforms and systems.
  • Defense Industrial Base: Outdated defense industrial infrastructure means that new defense article production in Romania can be costly.

Stakeholders in the Defense Procurement Process

1. Contracting authorities of the Romanian Ministry of Defense:

  • General Directorate for Armaments, MOD acquisitions department
  • Romtehnica: MOD Export-Import Company. Most defense-related procurement contracts and aspects related to the transfer of technology, logistic support, technical assistance, and personnel training are negotiated and signed on behalf of the MOD by Romtehnica. They conduct all commercial and financial activities related to the defense upgrading and modernization programs of the Romanian Armed Forces.
  • METRA: R&D Agency of the Romanian army. METRA together with the military branches define technical specifications for tenders organized by Romtehnica.

2. Romanian state-owned defense companies:
The National Company Romarm is the largest domestic industry player in military equipment, ammunition, and maintenance services. Romarm operates under the authority of the Ministry of Economy and Commerce’s Defense Industry Department and comprises 15 subsidiaries.

3. The Romanian Agency for Technological, Industrial Cooperation for Security and Defense (ARCTIS)
The Romanian Agency for Technological and Industrial Cooperation for Security and Defense (ARCTIS) was established in January 2024 (under Government Emergency Ordinance no.124/2023) and marks a significant step forward in bolstering Romania’s defense industry, reflecting the country’s commitment to enhancing its strategic autonomy and integrating more robustly into European and NATO defense frameworks.

4. The Controllers: ANAP and DNA
The National Agency for Public Procurement (ANAP) Roles

  • Policy and law making, guidance, helpdesk and operational support, ex-ante control, and monitoring and supervision of the public procurement system.
  • Ensuring a coherent and harmonized legal framework in the field of public procurement in line with the obligations derived from the application of the EU Directives.
  • Implementing a proper verification system to ensure the unitary application of the legal provisions and procedures by the contracting authorities.
  • Ensuring an efficient system of public procurement and supervising its functionality.
  • Ensuring a permanent communication channel with the structures within the European Commission, with the correspondent public institutions from the Member States, and with the national bodies of public interest.

The National Anti-Corruption Division (DNA) Roles 

  • prosecutor’s office that specializes in combating high and medium level corruption.
  • discovery, investigation, and indictment on high and medium level corruption cases.
  • contribution to reducing corruption, giving its support for a democratic society aligned to the European Union Standards and values.

5. The Referees: The National Council for Solving Complaints (NCSC) 

  • first administrative body with jurisdiction over public procurement.
  • aims to guarantee compliance of contracting authorities through legislation for the resolution of complaints submitted by any person.

Other relevant organizations

National Agency for Controlling Exports of Strategic Products (ANCEX)
Association of Romanian Defense Producers (PATROMIL)

Trade Events

NATO Industry Forum – Bucharest, November 5-6, 2025
SIGSEC – Homeland Security, Emergency Services, Safety & Public Order – 3rd Edition: “Resilience Through Innovation: Shaping the Future of Safety, Security and Preparedness”, hosted at National Military Club, Bucharest, November 12, 2025
Black Sea Defense and Aerospace (BSDA) Trade Show organized in Bucharest, every two years, with the support of the U.S. Department of Commerce. Next edition of BSDA will be held May 13-16, 2026.

Contact Information
Monica Eremia, Commercial Specialist 
monica.eremia@trade.gov

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