(BRUSSELS) - The European Commission told Greece on Wednesday to recover more than 230 million euros (363 million dollars) in what it considered to be illegal state aid from Hellenic Shipyards.

The commission said that some loans, guarantees and capital injections granted to the shipyard between 1996 and 2002 when it was in dire straits failed to meet EU state aid rules.

"Greece has repeatedly provided unlawful and incompatible financing to the loss making civil activities of the yard until 2002. The illegal aid must now be recovered," EU Competition Commissioner Neelie Kroes said.

The shipyard was privatised in 2002 and has since become part of German steel group ThyssenKrupp.

As Europe's top competition watchdog, the commission is responsible for policing state aid in the European Union, which must respect the bloc's tough rules.

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