23 March 2022. The European Commission, in communication number C(2022) 1890 final, announced a temporary emergency framework for public aid to businesses that have suffered losses due to the war in Ukraine. This includes not only losses that are directly related to the Russian invasion, such as the disruption of supply chains for products that would normally be imported from Ukraine, but also losses related to sanctions imposed by the EU and the US on Russia and the related need to end or limit cooperation with Russian business partners.
The European Commission also recognizes the link between the invasion of Ukraine and the increase in electricity prices. Therefore, it provides a framework of support for entrepreneurs who have been affected by the above circumstances. For this reason, in the Commission’s view, there is a need to take structured measures to assist businesses.
According to the communication, the Commission foresees three types of support:
- direct financial assistance. This is granted for an amount of EUR 35 000 per business in the area of agriculture or aquaculture. Alternatively, EUR 400 000 will be granted to one enterprise active in other areas;
- liquidity support for entrepreneurs. Member States should guarantee access to credit and loans from banks for businesses affected by the war;
- compensation for energy price increases.
For some entrepreneurs, the €400,000 cap on public support may be exceeded. For example, entrepreneurs in energy-intensive sectors may receive as much as €25,000,000. In turn, entrepreneurs conducting industrial activities listed in the annex to the communication (e.g. metallurgy, production of glass, plastics, and certain fabrics) – even 50,000,000 euro.
Support to entrepreneurs should be granted by 31 December 2022 at the latest. Apart from that, the detailed rules and forms of granting help will be contained in acts issued by the Member States.
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