Romanian Government has drafted a memorandum and tasked the Ministry of Economy to identify financing sources for a 1.7 billion euros state aid scheme for large industrial natural gas and electricity consumers impacted by the high energy prices over the past two years.
Eventually, the scheme will be submitted for approval to the European Commission. The state aid will consist of direct payments, tax waivers, guarantees and loans. Companies such as artificial fertilizer producer Azomures, steel mill Alro Slatina, aluminium producer Alum Tulcea or petrochemical company Chimcomplex would qualify for state aid.
The money would come from the reallocation of EU cohesion funds from the previous financial year but at risk of de-commitment, as well as from the amounts collected by Romania following the trading on the EU’s joint auction platform of CO2 emission allowances.
For the companies that have stopped production, the necessary budget is estimated at 400 million euros, and the aid should cover the costs of preservation and restart and be granted only in the event of restarting.
Companies that have continued to produce, but incurred losses, would need aid in the amount of around 700 million euros, which will enable them to become bankable again and continue their operations, increasing competitiveness.
Finally, the aid needs of companies that have switched to imports of raw materials are estimated at around 600 million euros.
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Tags: electricity, energy crisis, financial, gas, support scheme