The European Commission ordered Romania on Monday 17 December to recover about 335 million euros in state aid incompatible with EU law granted to the petrochemical company Oltchim.
In April 2016, the institution opened an in-depth investigation to assess the compatibility of measures put in place by Bucharest since 2012 to support Oltchim. In particular, it was to be determined whether the non-enforcement, accumulation of debts and debt cancellations owed by Oltchim to the Romanian authorities were compatible with EU law.
The Commission initially considered that these measures amounted to State aid, since no private creditor would have agreed to implement these measures against the company. The institution then assessed the aid in the light of the rescue and restructuring guidelines, which make it possible to support a company, in particular if it is subject to a sound restructuring plan and contributes to the cost of its restructuring.
In this case, the Commission found that it had not been notified of any restructuring plan and that no investor had planned to contribute to the cost of Oltchim's restructuring. It therefore concluded that the aid was incompatible with EU state aid law and ordered Bucharest to recover the amount corresponding to these measures, i.e., almost 335 million euros. (Original version in French by Lucas Tripoteau)