Approved by European Commission the temporary framework to support the economyin the shadow of its consequences Russian invasion of Ukraine. Member States will be able to do so use of flexibility provided by state aid rules to support the economy.
The new framework will allow Member States to:
- Grant limited amounts of aid to companies affected by the current crisis or related sanctions and countermeasures
- Ensure that there is still sufficient liquidity for businesses
- To compensate the companies for the additional costs they have incurred due to the extremely high prices of gas and electricity.
These types of measures will also be available for businesses that characterized as problematic, as they may face serious liquidity needs due to the current conditions that are manifesting after the coronavirus pandemic. Entities controlled by Russia subject to sanctions will be excluded from the scope of these measures.
For example: If Member States wish to minimize the impact of the sharp increase in the cost of production factors, they may immediately introduce schemes of up to EUR 400 000 per undertaking affected by the crisis. The Commission stands ready to work with Member States immediately to find workable solutions immediately to safeguard this important part of our economy, taking full advantage of the flexibility provided by State aid rules.
In order to maintain a level playing field in the single market, the new interim crisis framework includes certain safeguards. Member States are also invited to include sustainability requirements to provide aid for the additional energy costs associated with high gas and electricity prices.
The provisional crisis framework complements the existing toolkit for state aid with many other possibilities already available to the Member States, such as measures to compensate companies for losses suffered directly as a result of exceptional circumstances, and measures described in the Commission communications on energy market developments.
THE Executive Vice-President of the Commission, Margaret Westeyer, in charge of competition policy“At this critical juncture, the European Union continues to support Ukraine and its people. We must oppose this brutal invasion as our own freedom is at stake.
Sanctions imposed by the EU and its international partners have dealt a severe blow to the Russian economy.
These sanctions are also affecting the European economy and will continue to do so in the coming months. We must mitigate the economic impact of this war and support businesses and sectors that are severely affected. And we must act in a coordinated manner.
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