Sat. Aug 13th, 2022

The European Commission has closed its in-depth investigation into Romanian support to petrochemical company Oltchim. In December 2018, the Commission found that Oltchim received around €335 million of incompatible aid in the form of:

(i) non-enforcement of debts,

(ii) debt cancellations, and

(iii) continued supplies to Oltchim without payment.

The Commission ordered Romania to recover this aid. In December 2021, the General Court found that the Commission had failed to demonstrate that two support measures – the non-enforcement of debts and the debt cancellations – constituted State aid and, therefore, partially annulled the 2018 Commission decision.

As a consequence of the judgment of the General Court, the Commission’s formal investigation remained open in respect of the two measures at issue. On 8 May 2019, Oltchim was declared insolvent and completely ceased its economic activity.

As a result, the Commission’s investigation has become without object and the Commission therefore closed its investigation. More information will be available on the Commission’s competition website, in the public case register under the case number SA.36086 once any confidentiality issues have been resolved.