Romania is looking for ways to protect around 2,500 jobs at the local unit of Russian steel-pipes manufacturer TMK PJSC, which was hit by sanctions against billionaire Dmitry Pumpyansky, according to Bloomberg.
The employees of TMK Artrom haven’t received wages and the company cannot pay suppliers as its accounts have been frozen, according to local trade union leaders and politicians.
The unit is facing troubles even after the parent company said that Pumpyansky offloaded his stake after the sanctions were imposed.
Problems with TMK’s production may have spillover effects for the Romanian economy as the company supplies the country’s largest carmaker Dacia Renault and construction businesses.
“Romania’s government set up a multi-institutional working group to discuss potential solutions, but no concrete plans have been put on the table yet,” Bogdan Hossu, the leader of a national union organization that includes TMK’s workers, said by phone.
The country is preparing a mix of measures to limit the negative impact of the war in Ukraine and the sanctions, the government in Bucharest said in a written response to Bloomberg questions, without giving more details.
TMK’s press office hasn’t responded to a request for comments.
Even as sanctions against Russia are “absolutely necessary,” European governments should be able to protect workers at companies that have been affected by them, according to Marcel Ciolacu, parliament Speaker and leader of the senior ruling Social Democratic party.
“No European country has sanctioned the employees of producers,” Ciolacu said on Facebook. “People haven’t received wages, production is stagnating and all the contracts with important companies for the Romanian industry are under a big question mark.”