The Commission approves a state aid scheme notified by Romania, amounting to EUR 126 million, to support ports facing increased trade flows due to the war initiated by Russia against Ukraine.

The European Commission has approved, under EU state aid rules, a scheme notified by Romania amounting to EUR 126 million to support investments in ports facing increased commercial flows as a result of Russia's war against Ukraine. The measure facilitates trade flows to and from Ukraine, in line with the objectives of the EU's Action Plan for the Solidarity Corridors.

Romania's Notified Scheme

Romania has notified the Commission of its plans to support businesses operating in certain ports in Romania to invest in additional handling or storage facilities for processing goods that have been diverted from their normal trade routes due to Russia's war against Ukraine and the inability to use Ukraine's direct maritime export routes. The scheme, with a budget of EUR 126 million (approximately RON 626 million), will run until December 31, 2024.

Under the scheme, the aid will take the form of grants of up to EUR 10 million for logistics companies operating in Romanian maritime and inland ports located on: (i) the EU's eastern border (Constanța, Galați, Giurgiu); (ii) the Danube-Black Sea Canal (Poarta Albă, Midia, and Năvodari); (iii) the Sulina Canal or the "satellite" ports of Constanța (Midia and Mangalia). The aid cannot exceed the lesser of the following amounts: (i) EUR 10 million per beneficiary, (ii) the funding gap, or (iii) 65% of the eligible project costs.

The measure will be partially funded from EU cohesion funds and will contribute to the functioning of the EU-Ukraine solidarity corridors by facilitating trade flows to and from Ukraine.

Commission's Assessment

The Commission assessed the measure under EU state aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union, allowing member states to support certain economic activities' development under certain conditions.

The Commission found that:

• The aid is necessary and appropriate to generate the investment, which could not have been made without the aid, as no market investor or financial institution would have financed it under commercial terms due to uncertainties related to Russia's war and the temporary nature of the commercial flows it created.
• The aid is proportional and limited to the minimum necessary to generate the investments. Moreover, the aid level is based on a demonstrated funding gap.
• Operators can receive only those aids that are indispensable to cover additional costs related to the equipment and storage required for handling goods deviated from their normal trade routes.
• The positive effects of the aid compensate for any potential negative effects on competition and trade between EU member states. The relevant trade flows have naturally occurred in the geographically closest ports to Ukraine and will disappear after the crisis is resolved.

Given these considerations, the Commission approved Romania's notified scheme under EU state aid rules.

Additional Information

The non-confidential version of the decision (with case number SA.109965) will be made available in the State Aid Register on the Commission's competition website once any confidentiality issues are resolved.

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