The European Commission approved yesterday 11 January a series of state aid to Romania worth EUR 126 million. The measure facilitates trade flows to and from Ukraine, in line with the objectives of the EU action plan "Solidarity Lanes". The money, in fact, serves to support the ports that must cope with the increase in trade flows due to Russia’s war against Ukraine. 

The measure will be partly financed by EU cohesion funds and will contribute to the functioning of the EU-Ukraine solidarity lanes by facilitating trade flows to and from Ukraine. The newly approved scheme will last until 31 December 2024 and provides for aid, in the form of grants, of up to EUR 10 million which are allocated to logistics companies active in Romanian seaports and inland ports located: 

• on the eastern border of the EU (Constance, Galatians, Giurgiu); 
• on the Danube-Black Sea Canal (Poarta Alba, Midia and Navodari); 
• on the Sulina Canal;
• in the "satellite" ports of Constance (Midia and Mangalia). 

The aid may not exceed the lower of the following amounts: 10 million Euros per beneficiary; the funding gap or 65% of the eligible costs of the project. The new aid scheme comes after Romania has notified the European Commission of its plans to support companies active in some Romanian ports to invest in additional handling or storage facilities for processing goods diverted from their ports normal trade routes due to Russia’s war against Ukraine and the collapse of Ukraine’s direct shipping routes. 

The Commission found that "the aid is necessary and appropriate to activate the investment, which could not have been achieved without the aid because neither a market investor nor a financial institution would have financed it on commercial terms because of the uncertainties linked to the war in Russia and the temporary nature of the trade flows it has created". 

"This 126 million Euro programme will enable Romania to reduce the bottlenecks created by the sudden wave of goods arriving in the ports of the Danube and Black Sea coasts -explains Margrethe Vestager, executive vice-president responsible for competition policy-. The aid will support port operators in the processing and storage of queued goods, thus reducing the blockade caused by Russia’s war against Ukraine. This will contribute to the EU’s 'Solidarity Lanes' action plan without unduly distorting competition in the single market".