The European Commission has tabled a proposal for a new emergency macro-financial assistance (MFA) programme for Ukraine of up to €1.2 billion. This proposal follows an earlier request from the Ukrainian authorities and direct discussions between Commission President Ursula von der Leyen and Ukraine's President Volodymyr Zelenskyy. MFA funds will be made available to Ukraine in the form of long-term loans on highly favourable terms. They will contribute to enhancing Ukraine's macroeconomic stability and overall resilience in the context created by the sharp increase in geopolitical uncertainty and its impact on the economic situation. A swift adoption of this proposal by the Council and the European Parliament will allow the Commission to immediately disburse a first tranche of €600 million to Ukraine. The second tranche will be disbursed following a positive assessment of progress made by the Ukrainian authorities with the implementation of a limited number of agreed short-term policy measures. In parallel to today's proposal, the Commission has also decided to significantly increase the bilateral assistance it provides Ukraine in grants in 2022. This support will help to strengthen Ukraine's state-building and resilience efforts, thus complementing the MFA in helping underpin the country's overall stability.
State aid: Commission approves €10 million Italian scheme to support companies recycling aluminium in the context of the coronavirus pandemic
The European Commission has approved a €10 million Italian scheme to support companies managing aluminium waste sorting and recycling plants in the context of the coronavirus pandemic. The scheme was approved under the State aid Temporary Framework. Under the scheme, the aid will take the form of direct grants. The aid amount per beneficiary will be calculated based on its decline in turnover over 2020, compared to 2019, up to 20% of this value and within a maximum ceiling of €200,000. The measure will be open to companies of all sizes managing aluminium waste sorting and recycling plants that have continued to operate despite the decline in demand for recycled material due to the coronavirus pandemic. The purpose of the scheme is to address the liquidity needs of these companies and to help them continue their activities during and after the pandemic. The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €2.3 million per company; and (ii) will be granted no later than 30 June 2022. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules.
Mergers: Commission clears acquisition of joint control of Puget by MIRA, PGGM, OTPP, BCI, OMERS and AIMCo
The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control of Puget Holdings LLC (‘Puget') of the US by Macquarie Infrastructure and Real Assets, Inc. (‘MIRA') of the US, belonging to the Macquarie group, PGGM Vermogensbeheer B.V. (‘PGGM') of the Netherlands, Ontario Teachers' Pension Plan Board (‘OTPP'), British Columbia Investment Management Corporation (‘BCI'), OMERS Administration Corporation (‘OMERS') and Alberta Investment Management Corporation (‘AIMCo'), all of Canada. Puget is active in the generation and transmission of electricity, as well as in the distribution of natural gas in the US. MIRA, PGGM, OTPP, BCI, OMERS and AIMCo are all active in the administration of pension or investment funds. The Commission concluded that the proposed acquisition would not raise competition concerns, because of Puget's negligible foreseen activities within the territory of the European Economic Area. The transaction was examined under the simplified merger review procedure.
Mergers: Commission clears acquisition of Sierra Gorda by South32 and KGHM
The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control of Sierra Gorda of Chile by South32 of Australia and KGHM of Poland. Sierra Gorda exploits a mine located in Chile from which it provides molybdenum concentrate and copper concentrate containing limited quantities of silver and gold. South32 supplies a number of mining products from sites located in Australia, Southern Africa and South America, including silver. KGHM produces various commodities from a number of sites worldwide, including copper, silver, gold and molybdenum. The Commission concluded that the proposed acquisition would raise no competition concerns, because Sierra Gorda has negligible activities in the European Economic Area and the overlaps between the activities of Sierra Gorda, South32 and KGHM are limited. The transaction was examined under the simplified merger review procedure.
