15 Jan 2024 14:05

EC allocating 126 mln euros to Romania for development of ports transshipping Ukrainian grain

MOSCOW. Jan 15 (Interfax) - The European Commission (EC) is allocating 126 million euros to Romania in 2024 to invest in the development of its ports facing increased exports of Ukrainian products, Ukrainian media outlets said with a reference to the commission's website.

"This 126-million-euro scheme will allow Romania to reduce bottlenecks created by the sudden surge in goods arriving in the Danube and Black Sea coast ports. The aid will support port operators to process and store queuing goods [...]. This will contribute to the EU Solidarity Lanes action plan without unduly distorting competition in the Single Market," European Commissioner for Competition Margrethe Vestager said in a statement published on the website.

According to the EC website, all logistics companies operating in Romanian ports located on the eastern border of the European Union, namely, Constanta, Galati, and Giurgiu, the Danube-Black Sea Canal (Poarta Alba, Midia, and Navodari), the Sulina Canal, and in the Constanta satellite ports, Midia and Mangalia, will be able to receive grants of up to ten million euros.

Operators will receive aid necessary to cover additional expenses on equipment and storage capacities for processing cargoes deviating from their normal trade routes.

Financing was provided at Romania's request after it had notified the EC about its plans to support companies in Romanian ports with investing in additional handling and storage capacities for processing goods from Ukraine. This scheme with a budget of 126 million euros will be in effect until December 31, 2024.

As reported earlier, in 2023, Romania's Constanta port on the Black Sea set an all-time record of grain export, 36 million tonnes, which is 50% higher than in 2022, thanks to an increase in deliveries from Ukraine. Ukrainian grain made up about 40% of the total amount, or 14 million tonnes, compared with 13 million tonnes in late November and 8.6 million tonnes in the entire 2022.

Romania is making efforts to increase its transit capacities to bring transshipment of Ukrainian grain to 4 million tonnes a month and modernizes the railway and automobile structure at the Constanta port and around it to that end. Ukraine and Romania agreed to install additional anchorage for Ukrainian agricultural products at the Constanta port.