Belgium, (Brussels Morning Newspaper) The European Commission has adopted the Temporary Crisis Framework to help companies cope with the effects of sanctions and rising energy prices.
An EC statement issued today says that new rules complement existing EU rules on state aid, stressing that the moves aims to support the economy “in the context of Russia’s invasion of Ukraine.”
Margrethe Vestager, the European Commissioner for Competition, said “the EU continues to stand with Ukraine and its people”, forcefully noting that “we must oppose this cruel invasion as it is also our freedom that is at stake.”
She maintained that both the EU and general Western sanctions had broadly affected the Russian economy, but acknowledged that the measures also take “a toll on the European economy and will continue to do so in the coming months.”
Vestager said it was important to cushion the effects and to ensure coordinated support to sectors and companies that are most affected.
“With this in mind, the Commission will enable member states to use the flexibility foreseen under state aid rules to tackle this unprecedented situation, while protecting the level playing field in the single market.”
New rules will allow EU member states to provide limited aid to companies affected by sanctions and countersanctions, make financing available to companies to maintain solvency and provide compensation for costs incurred by soaring energy prices.
Russian-controlled companies will not be eligible for aid, Vestager declared, noting how the new crisis had arrived “on the heels of the coronavirus pandemic.”
“In order to preserve the level playing field in the single market, the new Temporary Crisis Framework includes a number of safeguards… member states are also invited to include sustainability requirements for granting aid for the additional energy costs linked to high gas and electricity prices”, she added.
She promised that the EC would keep a close eye on the situation and provide support to citizens and governments. Under the scheme, member states will be able to provide grants of up to 35,000 euro to companies in the agriculture and aquaculture sectors, and up to 400,000 euro to companies in other sectors.
