Profil:
Bumech SABumech coal complains to EC on unauthorised financial aid for two state-controlled firms
Listed coal company Bumech, owner of the Silesia mine, has filed a complaint with the European Commission regarding the unauthorised financial aid to two state-controlled entities, violating Bumech's competitive position as a coal importer, the company said in a market filing.
"In 2022, as a result of the Russian military invasion in Ukraine, there were shortages of coal on the market combined with a sharp increase in prices. To meet the supply, the company - and other private entities - started importing coal to Poland," Bumech wrote in the market filing.
"At the same time, two companies controlled by the State Treasury intervened in the import of the raw material, which consequently led to an oversupply of coal on the market and a sharp fall in prices," it added.
Bumech further explained that under these circumstances, the Ministry of Climate and Environment provided these two State Treasury-controlled entities with unauthorised aid in the form of reimbursement.
According to Bumech, this was a compensation for the incurred loss on sales, which arose in these companies due to the implementation of coal imports in 2022 and 2023.
The market filing indicated that the two entities therefore did not bear any risk of their business, while the other importers carried out business activities taking into account the full risk.
Bumech stressed that such a mechanism clearly distorted competition between coal importers.
In its complaint to the European Commission, Bumech also argued that any aid granted by a member state or through state resources in any form whatsoever which distorts or threatens to distort competition by favouring certain enterprises is incompatible with the rules of internal market.
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