Romanian companies will use EU money to build additional capacities in ports for storage and transshipment of Ukrainian exports
The European Commission (EC) has allocated €126 million to invest in Romanian ports facing increased trade flows from Ukraine. This will facilitate Ukraine’s trade in line with the objectives of the EU’s Solidarity Action Plan. This is stated in the message of the EC.
Previously, the European Commission received plans from Romania to support companies in local ports that are ready to invest in additional loading and unloading or warehouse capacity for transshipment of goods from Ukraine.
Under the scheme, logistics companies in the ports of Constanta, Galati, Giurgiulesti, on the Danube-Black Sea Canal (Poarta Alba, Mussel and Navodari, and the Sulin Canal) will receive €10 million in grants.
Financial assistance to companies in Romanian ports is necessary and appropriate, as neither a market investor nor any financial institution would finance it on commercial terms due to the uncertainty associated with Russia’s aggression. Assistance is proportionate and limited to the minimum necessary to stimulate investment,» the message reads.
Port operators will be able to receive the necessary funds to cover the additional costs of equipment and warehouses to handle cargoes that are not part of their usual trade routes.
The positive effects of the aid outweigh any potential negative effects on competition and trade between EU member states. The relevant trade flows have naturally emerged in the ports geographically closest to Ukraine and will disappear after the war, the EC believes.
«This €126 million scheme will allow Romania to reduce bottlenecks caused by the sudden increase in the number of goods arriving at ports along the Danube and Black Sea coast. The aid will help port operators handle and store cargo, reducing the blockade caused by Russia’s war against Ukraine. This will contribute to the EU’s Solidarity Action Plan, while not disturbing competition in the single market,» Margrethe Vestager, Executive Vice-President for Competition Policy at the European Commission, comments.
As GMK Center reported earlier, on January 11, 2024, Turkiye, Bulgaria and Romania made a deal on joint countermeasures against sea mines that threaten shipping in the Black Sea since the beginning of the full-scale invasion of the Russian Federation on the territory of Ukraine. After the signing of the agreement, the process of operational planning will begin, aimed at the development of detailed documents and instructions for the actions of the group.