Considerations on COM(2022)179 - Amending Regulation 508/2014 as regards measures to alleviate the consequences of war in Ukraine on fishing activities and disruption on the supply chain of fishery products

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dossier COM(2022)179 - Amending Regulation 508/2014 as regards measures to alleviate the consequences of war in Ukraine on fishing activities and ...
document COM(2022)179 EN
date July 18, 2022
 
table>(1)Russia’s war of aggression against Ukraine since 24 February 2022 is having an impact on operators in the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports have been rendered inoperable because of the Russian attacks and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Russia and Ukraine to the Union, leading to shortages of key raw materials and to a substantial increase in fish feed prices. Part of the Union fleet has ceased fishing because of the impossibility of offsetting the increase in input costs such as soaring energy prices and the decrease in profitability of fishing. The combined impact of the raw material shortages and cost increases is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.
(2)Therefore, it should be possible for the European Maritime and Fisheries Fund (EMFF) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council (3) to support specific measures to mitigate the effects of the market disruption caused by Russia’s war of aggression against Ukraine on the supply chain of fishery and aquaculture products. Those measures should comprise financial compensation to recognised producer organisations and associations of producer organisations which store fishery or aquaculture products in accordance with Articles 30 and 31 of Regulation (EU) No 1379/2013 of the European Parliament and of the Council (4), and financial compensation to operators of the fishery and aquaculture sector, including the processing sector, for their income foregone, and for additional costs they have incurred due to the market disruption caused by Russia’s war of aggression against Ukraine and its effects on the supply chain of fishery and aquaculture products. Expenditure for operations supported under those measures should be eligible as from 24 February 2022, which is the date upon which Russia’s war of aggression against Ukraine commenced.

(3)It should also be possible for the EMFF to support financial compensation for the temporary cessation of fishing activities where Russia’s war of aggression against Ukraine jeopardises the security of fishing activities or where the impact of that war of aggression impedes the economic viability of fishing operations. Such temporary cessation of fishing activities should be eligible as from 24 February 2022.

(4)It should be possible to support both those measures with a maximum co-financing rate of 75 % of eligible public expenditure.

(5)Given the need for flexibility in the reallocation of financial resources, it should be possible to reallocate the fixed amounts established for control and enforcement measures and for measures on data collection to the measures alleviating the consequences of Russia’s war of aggression against Ukraine on fishing activities and mitigating the effects of the market disruption caused by that war of aggression on the supply chain of fishery and aquaculture products. For the same reason, and without prejudice to the existing financial capping and limitation of duration for the other cases of temporary cessation of fishing activities, the provision of support for the temporary cessation of fishing activities caused by Russia’s war of aggression against Ukraine should not be subject to financial capping or to a limitation on duration. The obligation to deduct support granted for temporary cessation of fishing activities from support granted for the permanent cessation of fishing activities to the same vessel should continue to apply. For the sake of legal clarity as regards the implementation of this new case of temporary cessation of fishing activities, it is necessary to refer to the eligibility period set out in Article 65(2) of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (5).

(6)Given the urgency of providing the support needed, the scope of the simplified procedure for amending the operational programmes of Member States should be extended to include amendments related to the specific measures to alleviate the consequences of Russia’s war of aggression against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that war of aggression on the supply chain of fishery and aquaculture products. That simplified procedure should cover all the amendments necessary for the full implementation of the measures concerned, including their introduction, the reallocation of financial resources from other measures, and the description of the methods for calculating support.

(7)Given the urgency of the support needed, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union. Given the unexpected character of Russia’s war of aggression against Ukraine and its serious impact on fishing activities and on the economic sectors and supply chains concerned, the provisions on eligibility of the costs should apply retroactively from 24 February 2022.

(8)Since the objective of this Regulation, namely to mitigate the impact of Russia’s war of aggression against Ukraine on the fishery and aquaculture sector, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale and effects of the proposed action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(9)Regulation (EU) No 508/2014 should therefore be amended accordingly,