The Russia-Ukraine conflict will drag on Romania's GDP growth and push up already-elevated inflation. A key uncertainty for Romania and the rest of Europe is the duration of the conflict. More positively, the EU is set to disburse over 10% of Romania's GDP in European Structural and Investment Funds and Next Generation EU transfers to the country over 2022-2027, benefiting the sovereign's fiscal and external profile. We affirmed our 'BBB-/A-3' ratings on Romania with a stable outlook. On April 15, 2022, S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Romania. The outlook is stable. The stable outlook balances economic risks from the Russia-Ukraine conflict against the buffers provided by the country's
