Formal investigation into State aid to certain Croatian wood companies
The Commission invites interested parties to submit comments to the formal investigation in State aid SA.63845 alleged State aid to certain Croatian wood companies in a decision published in the Official Journal (OJ).
The Commission opened a formal investigation into potential State aid granted by Croatia to Hrvatske Šume (HŠ), which holds exclusive rights to manage and commercially exploit State-owned forests in Croatia, and certain Croatian wood companies.
The investigation was initiated with a complaint and will examine the existence and lawfulness of two alleged aid measures, namely, (i) the absence of remuneration for the referred exclusive rights since 1990, and (ii) the economic terms offered by HŠ to its customers under long-term wood sales contracts.
The Commission has expressed concerns that the alleged lack of remuneration for the rights to commercially exploit State-owned forests may provide HŠ with an economic advantage by exempting it from costs it would normally incur. Additionally, the Commission questions whether the Framework Agreements reflect a State-driven measure or rather an independent commercial decision by HŠ, made without State involvement. The Commission also doubts that the annual prices set in the Framework Agreements align with market rates.
For more information, see the Official Publication.