PURPOSE: to enable the European Maritime Affairs and Fisheries Fund (EMFF) to support specific measures to mitigate the effects of the market disruption caused by Russia's military aggression against Ukraine on the supply chain in the fisheries and aquaculture sector.
PROPOSED ACT: Regulation of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: the military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of 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 were rendered inoperable because of the Russian attack 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 Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. The livestock and seafood processing sectors are also suffering from the combined effects of cost increases and shortages.
There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.
CONTENT: the Commission proposes to amend Regulation (EU) No 508/2014 on the European Maritime Affairs and Fisheries Fund (EMFF) by introducing specific measures to mitigate the consequences of Russia's military aggression against Ukraine on fishing activities and to alleviate the effects of the market disruption caused by this military aggression on the supply chain in the fisheries and aquaculture products sector. Expenditure remains eligible for a contribution from this Fund until 31 December 2023.
The proposal introduces the following measures:
- financial compensation for the temporary cessation of fishing activities where the military aggression of Russia against Ukraine jeopardises the security of fishing operations. This compensation is subject neither to the financial ceiling established in Article 25(3) of the EMFF Regulation, nor to the 6 months’ maximum duration set out in Article 33(2) of that Regulation. It is supported with the standard Union cofinancing rate of 75 % of the eligible public expenditure;
- financial compensation to recognised producer organisations and associations of producer organisations which store fishery or aquaculture products in accordance with the storage mechanism of Regulation (EU) No 1379/2013 (common organisation of the markets);
- financial compensation to operators of the fishery and aquaculture sector (including the processing sector) for their income forgone, and for additional costs they incurred due to the market disruption caused by the military aggression of Russia against Ukraine and its effects on the supply chain of fishery and aquaculture products.
The proposal introduces these compensation schemes in existing EMFF measures to facilitate their quick implementation to avoid the need for significant amendments to the template of the operational programmes and facilitates reprogramming by Member States.
The proposal also introduces flexibility mechanisms to facilitate the quick implementation of these new measures:
- a simplified procedure for amending the operational programmes of Member States as regards the introduction of these measures, including the reallocation of financial resources thereto;
- retroactive eligibility of expenditure as of 24 February 2022 for these measures;
- the possibility of reallocating the fixed amounts initially reserved for certain EMFF measures (i.e. control and enforcement, data collection) to the new measures.