The European Commission (EC) started an in-depth investigation to check if the support measures the Romanian state granted to the National Uranium Company (CNU) complied with EU norms.

The EC also expressed doubt that the EU regulation was respected in this case.

In June 2017, the CNU received a state aid package worth about EUR 95 million, consisting of grants, subsidies, the cancellation of some debts and the conversion of other debts into shares. This followed an emergency loan worth EUR 13.3 million the state granted CNU in 2016, which the European Commission approved, on a temporary basis, in September 2016.

The EU norms allow states to help enterprises confronted with financial difficulties only in certain conditions and based on a solid restructuring plan that would make it viable on the long term.

The National Uranium Company operates a uranium mine in Suceava county and a processing plant in Brasov. The company had 772 employees in 2017. The company’s problems started after it lost its main client, state power producer Nuclearelectrica.

editor@romania-insider.com