Liberty Steel and GFG Alliance Investigated by Romanian Authorities for Embezzlement and Tax Evasion
Liberty Steel and its parent company GFG Alliance are under investigation by Romanian authorities over allegations of embezzlement and tax evasion. Romanian prosecutors raided seven homes and the registered office of an unnamed company, conducting searches in Galați and near Bucharest.
Prosecutors allege that management engaged in embezzlement through affiliated entities registered in other jurisdictions via contracts for goods or services not based on real operations, as well as fictitious loan contracts. One investigated transaction involved a €137 million sale of CO2 certificates to Gazprom. The proceeds from this sale were allegedly rerouted to the parent company through a Singapore-registered entity, with Gazprom later requiring replacement of the certificates for €154 million.
Funds originally intended for industrial investments were reportedly diverted to cover payments to affiliated legal entities without operational justification. Galați, near the Ukrainian border where Liberty Steel’s Romanian operations are based, underwent audit controls; the external auditors examined the transactions and issued clean audit reports for the relevant periods. The Galați operations also reportedly received substantial financial support from GFG Alliance.
GFG Alliance and Liberty Steel have stated they will vigorously defend themselves against what they describe as unfounded allegations. This investigation adds to the difficulties faced by company founder Sanjeev Gupta, following the collapse of Greensill Capital in 2021. The UK's Serious Fraud Office has been investigating GFG and Greensill since that year.
Gupta has lost control of several assets, including the Whyalla steelworks in Australia and Liberty Steel UK’s South Yorkshire operations in August 2025. The Romanian raids form part of a wider wave of investigations targeting businesses across the country.
