ANNOUNCEMENT 08 Dec 2020

On 8 December 2020, the European Commission approved a loan guarantee from Cyprus to support a gas infrastructure project in Vasilikos Bay, Cyprus.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 08 Dec 2020 | Removal date: open ended

Loan guarantee

On 8 December 2020, the European Commission approved a EUR 230 million (USD 278) million loan guarantee scheme from Cyprus. The aid will secure a loan contracted by the Natural Gas Infrastructure Company of Cyprus with the European Investment Bank (“EIB”). The scheme is in force from 31.12.2020.

Under the scheme, the Cyprus state will cover loans contracted by the beneficiary for a gas infrastructure project (acquisition of a Floating Storage Regasification Unit and construction of associated infrastructure aimed at importing, storing and regasifying) in Cyprus.

In this context, the European Commission noted the: '[...]the measure distorts or threatens to distort competition and is likely to affect trade between Member States.'.

Regardless, the Commission has decided not to raise objections to the aid on the grounds that '[...]the notified measures are
compatible with the internal market in accordance with Article 107 (3) (c) TFEU, as they comply with Section 3.8 of the EEAG.'.

The state aid is notified under the following objective: Energy infrastructures.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
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