
AS Terminal, a prominent Estonian fuel company, has filed a complaint with the European Commission, accusing the Estonian government of providing illegal state aid to its competitor, AS Olerex.
The complaint alleges that Olerex has been allowed to breach environmental requirements, potentially saving up to €35 million annually by avoiding biofuel obligations.
Rauno Raudsepp, head of AS Terminal, claims that this situation not only distorts market competition but also undermines the European Union’s goals for environmentally friendly transport.
The complaint seeks assessment and recovery of the alleged illegal aid, which has reportedly given Olerex an unfair competitive advantage.
According to the Estonian Transport Fuels Union, Olerex may have benefited from up to €35 million in annual savings by not complying with biofuel requirements.
Additionally, the Estonian state has allegedly failed to apply up to €20 million in annual fines for these breaches.
This lax enforcement falls under the responsibility of the Estonian Environmental Board, Tax and Customs Board, and central government.
The Estonian government has cited procedural complexities as the reason for insufficient fining of Olerex between 2021 and 2023.
However, Raudsepp argues that this excuse is both unfair and unlawful, stating: “Making sure that the applicable regulation works effectively is a core function of the state and certainly the Estonian government cannot use its own failure as an excuse for illegal state aid.”
AS Terminal, founded in 1994, operates 45 service stations and is developing a nationwide fast-charging network for electric vehicles.
The company employs 330 people and traces its origins back to 1968.
This case highlights the ongoing challenges in balancing economic interests with environmental regulations in the fuel industry.
The European Commission’s response to this complaint could have significant implications for Estonia’s compliance with EU renewable energy targets and fair market practices in the fuel retail sector.