Romania drafted a memorandum and asked the Ministry of Economy to identify financing sources for a EUR 1.7 bln state aid scheme for large industrial consumers of electricity and natural gas, impacted by the high energy prices over the past two years, Adevarul reported.

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 Azomures, Alro Slatina, Alum Tulcea or Chimcomplex would qualify for state aid, according to Profit.ro.

The money would come from the reallocation of EU cohesion funds from the previous financial year but at risk of decommitment, as well as from the amounts collected by Romania following the trading on the EU's joint auction platform of greenhouse gas (CO2) emission allowances.

For the companies that have stopped production, the necessary budget is estimated at EUR 400 mln, 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 EUR 700 mln, which 'will enable them to become bankable again and continue their operations, increasing competitiveness'.

Finally, the document estimates the aid needs of companies that have switched to imports of raw materials at around EUR 600 mln.

iulian@romania-insider.com

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