Tag: European Commission

The press release issued by the European Commission on 15 September 2022.

The press release issued by the European Commission on 9 September 2022.

In a joint assessment released today, the Government of Ukraine, the European Commission, and the World Bank, in cooperation with partners, estimate that the current cost of reconstruction and recovery in Ukraine amounts to $349 billion (€349 billion). This figure is expected to grow in the coming months as the war continues.

The Rapid Damage and Needs Assessment (RDNA) presents the first comprehensive evaluation of war impacts across twenty different sectors following the Russian invasion. It also lays out the financing needs for a resilient, inclusive, and sustainable recovery and reconstruction and provides a roadmap for planning.

President of the European Commission, Ursula von der Leyen, said: “Ukraine is fighting for democracy and our common values. The EU cannot match the sacrifice Ukraine is enduring but we are mobilising all our instruments to address the most immediate needs, including for housing for internally displaced populations and to repair critical infrastructure.  Since the start of Russia’s brutal and illegal war of aggression against Ukraine, the EU has mobilised 10 billion euro in financing, humanitarian, emergency and military assistance for Ukraine and another 5 billion euros in financing are in the pipeline. The EU will walk every step of the way with Ukraine to rebuild a democratic, independent and prosperous country on its path to the EU.”

“With joint efforts, we have already started reconstruction in the de-occupied Ukrainian territories, but reconstruction requires a comprehensive approach and the mobilization of joint resources of the Ukrainian government and international partners. The assessment of the destruction and the identification of reconstruction needs creates a solid basis for the national Reconstruction Plan and is a prerequisite for effective financing. After all, only for the first stage, rapid recovery, $17 billion is needed, of which Ukraine needs $3.4 billion already this year,” said Prime Minister of Ukraine Denys Shmyhal.

The assessment covers the impacts of the war sustained between February 24 and June 1, 2022, and found that physical damage from the war reached over US$97 billion (€97 billion). It was particularly high in the housing, transport, commerce and industry sectors. The destruction was concentrated in the Chernihivska, Donetska, Luhanska, Kharkivska, Kyivska, and Zaporizka oblasts.

The RDNA results are preliminary, and damage and needs should be considered as minimums.

“The Russian invasion of Ukraine continues to exact a terrible toll, from significant civilian casualties and the displacement of millions of people to the widespread destruction of homes, businesses, social institutions, and economic activity,” said Anna Bjerde, World Bank Regional Vice-President for Europe and Central Asia. “The Government of Ukraine now faces the difficult task of balancing recovery with the country’s immediate needs, including core public services such as health, education and social protection, which are critical to preventing further deterioration in living conditions and poverty in Ukraine. The RDNA will help in identifying priorities for recovery while we continue to support the continuation of essential core services.”

The report found that recovery and reconstruction needs across social, productive, and infrastructure sectors total US$349 billion (€349 billion), which is more than 1.5 times the 2021 GDP of Ukraine. Over the next 36 months the RDNA assesses that US$105 billion (€105 billion) is needed to address urgent needs such as restoring education and health systems and infrastructure, preparing for the upcoming winter through restoration of heating and energy to homes, support to agriculture, and repair of vital transport routes. The safe management of debris and explosives, including landmines, also pose a substantial cost.

The Government of Ukraine is looking at the specific needs across the different regions ahead of the winter. Based on the highest priorities, tailored recovery and reconstruction plans are being developed to guide a program in each area.

The World Bank and the European Commission confirmed their continued support for the Government of Ukraine. Given the ongoing war, there will be a need for future assessments of damage, loss and reconstruction/recovery needs in Ukraine.  The Swiss State Secretariat for Economic Affairs (SECO) has committed financial support for this purpose.

The press release issued by the European Commission on 16 August 2022.

The European Commission has approved a €218 million (BGN 426 million) Bulgarian scheme to support certain agricultural producers in the context of Russia’s invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU’), recognising that the EU economy is experiencing a serious disturbance.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The agricultural sector has been hit particularly hard by the increases of energy prices and other input costs caused by Russia’s invasion of Ukraine and the related sanctions. This €218 million scheme approved today will enable Bulgaria to support farmers affected by the current geopolitical crisis. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.”

The Bulgarian measure

Bulgaria notified to the Commission under the Temporary Crisis Framework a €218 million (BGN 426 million) scheme to support certain agricultural producers in the context of Russia’s invasion of Ukraine.

The measure will be open to micro, small and medium-sized companies active in the primary production of certain agricultural products, which have been affected by the price increase of energy, fertilizers and other input costs, caused by the current geopolitical crisis and the related sanctions. The primary production of the following agricultural products is covered by the scheme: small and large ruminants, horses, beehives, fruits and vegetables (in particular salads and lettuce, okra and courgette), rose oil, wine vines, nuts and tobacco.

Under this scheme, the eligible beneficiaries will be entitled to receive limited amounts of aid in the form of direct grants. The aid amount per beneficiary will be calculated on the basis of the number of animals and of hectares of agricultural land.

The Commission found that the Bulgarian scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €62,000 per beneficiary; and (ii) will be granted no later than 31 December 2022.

The Commission concluded that the Bulgarian scheme 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 Crisis Framework.

On this basis, the Commission approved the aid measure under EU State aid rules.

Background

The State aid Temporary Crisis Framework, adopted on 23 March 2022, enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia’s invasion of Ukraine.

The Temporary Crisis Framework has been amended on 20 July 2022, to complement the Winter Preparedness Package and in line with the REPowerEU Plan objectives.

The Temporary Crisis Framework provides for the following types of aid, which can be granted by Member States:

Limited amounts of aid, in any form, for companies affected by the current crisis or by the subsequent sanctions and countersanctions up to the increased amount of 62,000€ and 75,000€ in the agriculture, and fisheries and aquaculture sectors respectively, and up to 500,000€ in all other sectors;
Liquidity support in form of State guarantees and subsidised loans;
Aid to compensate for high energy prices. The aid, which can be granted in any form, will partially compensate companies, in particular intensive energy users, for additional costs due to exceptional gas and electricity price increases. The overall aid per beneficiary cannot exceed 30% of the eligible costs and – in order to incentivise energy saving – should relate to no more than 70% of its gas and electricity consumption during the same period of the previous year, up to a maximum of €2 million at any given point in time. When the company incurs operating losses, further aid may be necessary to ensure the continuation of an economic activity. Therefore, for energy-intensive users, the aid intensities are higher and Member States may grant aid exceeding these ceilings, up to €25 million, and for companies active in particularly affected sectors and sub-sectors up to €50 million;
Measures accelerating the rollout of renewable energy. Member States can set up schemes for investments in renewable energy, including renewable hydrogen, biogas and biomethane, storage and renewable heat, including through heat pumps, with simplified tender procedures that can be quickly implemented, while including sufficient safeguards to protect the level playing field. In particular, Member States can devise schemes for a specific technology, requiring support in view of the particular national energy mix; and
Measures facilitating the decarbonisation of industrial processes. To further accelerate the diversification of energy supplies, Member States can support investments to phase out from fossil fuels, in particular through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions. Member States can either (i) set up new tender based schemes, or (ii) directly support projects, without tenders, with certain limits on the share of public support per investment. Specific top-up bonuses would be foreseen for small and medium-sized enterprises as well as for particularly energy efficient solutions.
The Temporary Crisis Framework also indicates how the following types of aid may be approved on a case-by-case basis, subject to conditions: (i) support for companies affected by mandatory or voluntary gas curtailment, (ii) support for the filling of gas storages, (iii) transitory and time-limited support for fuel switching to more polluting fossil fuels subject to energy efficiency efforts and to avoiding lock-in effects, and (iv) support the provision of insurance or reinsurance to companies transporting goods to and from Ukraine.

Sanctioned Russian-controlled entities will be excluded from the scope of these measures.

The Temporary Crisis Framework includes a number of safeguards:

Proportional methodology, requiring a link between the amount of aid that can be granted to businesses and the scale of their economic activity and exposure to the economic effects of the crisis;
Eligibility conditions, for example defining energy intensive users as businesses for which the purchase of energy products amount to at least 3% of their production value; and
Sustainability requirements, Member States are invited to consider, in a non-discriminatory way, setting up requirements related to environmental protection or security of supply when granting aid for additional costs due to exceptionally high gas and electricity prices.
The Temporary Crisis Framework will be in place until 31 December 2022 for the liquidity support measures and measures covering increased energy costs. Aid supporting the roll-out of renewables and the decarbonisation of the industry may be granted until end June 2023. With a view to ensuring legal certainty, the Commission will assess at a later stage the need for an extension.

The Temporary Crisis Framework complements the ample possibilities for Member States to design measures in line with existing EU State aid rules. For example, EU State aid rules enable Member States to help companies cope with liquidity shortages and needing urgent rescue aid. Furthermore, Article 107(2)(b) of the Treaty on the Functioning of the European Union enables Member States to compensate companies for the damage directly caused by an exceptional occurrence, such as those caused by the current crisis.

Furthermore, on 19 March 2020, the Commission adopted a Temporary Framework in the context of the coronavirus outbreak. The COVID Temporary Framework was amended on 3 April, 8 May, 29 June, 13 October 2020, 28 January and 18 November 2021. As announced in May 2022, the COVID Temporary Framework has not been extended beyond the set expiry date of 30 June 2022, with some exceptions. In particular, investment and solvency support measures may still be put in place until 31 December 2022 and 31 December 2023 respectively. In addition, the COVID Temporary Framework already provides for a flexible transition, under clear safeguards, in particular for the conversion and restructuring options of debt instruments, such as loans and guarantees, into other forms of aid, such as direct grants, until 30 June 2023.

The non-confidential version of the decision will be made available under the case number SA.103875 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s invasion of Ukraine can be found here.

The press release issued by the European Commission on 5 August 2022.

As of today, the EU has successfully coordinated 1,000 medical evacuations of Ukrainian patients via its Civil Protection Mechanism to provide them with specialised healthcare in hospitals across Europe.

As the number of wounded people in Ukraine increases day by day, local hospitals are struggling to keep up with the demand. At the same time, Poland, Moldova and Slovakia have requested support for medical evacuation (MEDEVAC) operations from their respective countries given the large inflow of people. To relieve pressure on local hospitals, since 11 March, the EU has been coordinating patient transfers to other European countries who have available hospital capacity.

The patients have been transferred to 18 countries: Germany, France, Ireland, Italy, Denmark, Sweden, Romania, Luxembourg, Belgium, Spain, Portugal, the Netherlands, Austria, Norway, Lithuania, Finland, Poland and Czechia. Recent operations include the transfer of two patients to Czechia on 3 August and 15 patients evacuated to Germany, four patients to the Netherlands and 2 patients to Norway on 4 August.

Commissioner for Crisis Management Janez Lenarčič said: “Russia’s unjustified war in Ukraine is driving Ukrainian health systems to breaking point. To help Ukraine cope with the skyrocketing medical needs, the EU has stepped up its operations. On top of delivering medicines and medical equipment to Ukraine via our Civil Protection Mechanism, we are also coordinating medical evacuations. 1,000 Ukrainian patients have been transferred to hospitals in 18 European countries. I want to thank all countries who are welcoming the Ukrainian patients in this critical time. EU solidarity saves lives.”

European Commissioner for Health and Food Safety Stella Kyriakides said: “From day one, the EU has been working tirelessly to support Ukraine and its people in the face of Russia’s brutal military aggression. As part of this, the EU Civil Protection Mechanism has allowed patients in urgent need of treatment and care to receive it in hospitals across the EU, while relieving pressure on the healthcare systems of Ukraine’s neighbouring countries. This is true European solidarity in action. Together with Ukrainian authorities, we are also looking into ways to bring patients back home when they have finished their treatment, if they choose to do so. This lifesaving work will continue, as will the EU’s unwavering commitment to supporting Ukraine”.

Background

The medical evacuations are financially and operationally supported by the EU Civil Protection Mechanism. The MEDEVAC transfer scheme supports the transfer of patients that fulfil the eligibility criteria, be they chronically ill or wounded by the war. The mechanism enables the Commission to report to the Ukrainian authorities where in the EU/EEA countries the patients have been transferred. For a secure transfer of patient data, the patients’ health records are shared using the Early Warning and Response System (EWRS).

The press release issued by the European Commission on 4 August 2022.

The Commission welcomes the decision by the International Civil Aviation Organization (ICAO) to call on the Russian Federation to immediately cease its infractions of international aviation rules, in order to preserve the safety and security of civil aviation. The ICAO decision refers to the violation of Ukraine’s sovereign airspace in the context of Russia’s war of aggression, and to the deliberate and continued violation of several safety requirements in an attempt by the Russian government to circumvent EU sanctions. These actions include illegally double-registering in Russia aircraft stolen from leasing companies, and permitting Russian airlines to operate these aircraft on international routes without a valid Certificate of Airworthiness, which is the necessary safety certificate.

Adina Vălean, Commissioner responsible for Transport, said: “It is of utmost importance for all countries to defend the international aviation rules-based system, for the safety of passengers and crew. Russia continues to disrespect the fundamental rules of international aviation and to instruct its airlines to work against these rules. I welcome the ICAO Council’s clear condemnation, which reflects the gravity of the actions undertaken by Russia.”

Josep Borrell, High Representative/Vice-President, said “The aim of EU sanctions, in addition to all our other actions, is to stop the reckless and inhuman invasion by Russia of Ukraine. In this context, I welcome ICAO’s report, which points to another example of Russia’s blatant disregard of international rules and standards, putting the lives of people at risk, including Russian citizens.

ICAO informed yesterday its 193 Member States about Russia’s blatant non-respect of crucial international aviation law and will bring the issue to its next general Assembly, taking place from 27 September to 7 October 2022.

Background

ICAO was the first UN agency to condemn Russia’s invasion of Ukraine. Since then, it has taken a number of actions.

On 15 June 2022, in its role as global safety oversight authority, the ICAO Secretariat issued a “Significant Safety Concern” against the Russian Federation in relation to the treatment of the stolen aircraft. The posting of a Significant Safety Concern is a measure which ICAO reserves to only the gravest of violations of international safety rules.

The ruling of ICAO’s governing body, the ICAO Council, was issued on 22 June 2022. It is wider than the issues covered by the “Significant Safety Concern” and also covers the airspace violations committed by Russia. The issue will also be on the agenda of the upcoming 41st ICAO Assembly in September/October 2022.

ICAO is the guardian of the international civil aviation system. ICAO States and in particular the individual members of the ICAO Council must respect these rules. An ICAO Council member actively working against these principles puts ICAO’s overall credibility at risk.