IMPLEMENTATION LEVEL

IFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 17 Nov 2015 | Removal date: open ended
Still in force

State loan

 On 17 November 2015, the European Investment Bank agreed to provide 30 million EUR for the renovation of the Milazzo refinery, north off the coast of Sicily, as part of the European Fund for Strategic Investments (henceforth: EFSI).
According to the EFSI information sheet, the funds will be used to improve the energy efficiency of the refinery, construct a sulphur-recovery unit and make adjustments in order to comply with Italian environmental legislation.
The financing provided by EIB will mobilise investments of 225.4 million EUR.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities"
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.
Update
On 4 April 2016 and 20 May 2016, the refinery received additional 40 million EUR of investment support each, raising the total amount of financing offered by EIB to 110 million EUR.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

333 Petroleum oils & oils of bituminous materials, other than crude
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271012 Light oils and preparations
271019 Other
271020 Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the bas

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