EU to Probe Effect of Foreign Subsidies in Bulgaria Train Contract Tender

By Pierre Bertrand

The European Union's executive arm opened a probe into whether a subsidiary of Chinese state-owned train maker CRRC Corp. benefited from subsidies to bid for a contract in Bulgaria, the first investigation under the bloc's new foreign-subsidy rules.

The investigation concerns a public procurement procedure launched by Bulgaria's Ministry of Transport and Communications, regarding the provision of electric trains, maintenance and training, the European Commission said Friday. It followed a notification by CRRC Qingdao Sifang Locomotive, a subsidiary of CRRC, the commission said.

A preliminary review found that "there are sufficient indications that this company has been granted a foreign subsidy that distorts the internal market," the commission said.

The in-depth investigation is the commission's first-ever under the Foreign Subsidies Regulation, which went into effect last year in July. The regulation allows it to look into whether companies get an unfair advantage in the EU from foreign subsidies.

The commission said it has until July 2 to make a final decision.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

February 16, 2024 11:13 ET (16:13 GMT)

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