Sat. Oct 1st, 2022

Brussels, 11 August 2022

The European Commission has approved a €200 million Irish scheme to support companies in the context of Russia’s invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022.

Under the scheme, the aid will take the form of: (i) limited amounts of aid to address current liquidity shortage, and (ii) aid for the additional costs that the eligible beneficiaries incurred due to exceptionally severe increases in natural gas and electricity prices. The scheme will be open to companies of all sizes affected by the crisis and active in (i) manufacturing, (ii) information and communication, (iii) professional, scientific and technical activities, and/or (iv) administrative and support service activities. Credit or financial institutions, coal or steel producers, and companies in the primary agriculture, fishery or aquaculture sectors are excluded from the scheme.

The Commission found that the Irish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, when it comes to limited amounts of aid, the support will not exceed €500,000 per beneficiary. As regards the aid for additional costs due to exceptional natural gas and electricity price increases, the overall aid per beneficiary will not exceed 30% of the eligible costs, up to a maximum of €2 million. In addition, the aid will be granted no later than 31 December 2022. The Commission found that the Irish scheme is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s invasion of Ukraine can be found here. The non-confidential version of the decision will be made available under the case number SA.103569 in the State aid register on the Commission’s competition website, once any confidentiality issues have been resolved. 

Source – EU Commission