State Aid Framework Published As Russia Sanctions Hit EU Economy

The European Commission has published a new 'Temporary Crisis Framework' for state aid that relaxes restrictions to allow member states to step in to assist firms and industries hit either directly or indirectly by the impact of sanctions imposed on Russia in the wake of the invasion of Ukraine.

• Link to full EU statement here: https://ec.europa.eu/commission/presscorner/detail...
• The 'Temporary Crisis Framework' runs until 31 Dec 2022, but will assess before that date if it needs to be extended.
• Firms affected by sanctions/the conflict in agri, fisheries can claim EUR35,000, and firms in any other industry EUR400,000. Impact does not have to be linked to energy prices, can be due to supply chain issues for example.
• "Member States will be able to provide (i) subsidised State guarantees to ensure banks keep providing loans to all companies affected by the current crisis; and (ii) public and private loans with subsidised interest rates."
• Member states can provide aid to firms operating in energy-intensive industries. Aid cannnot exceed 30% of relevant cost up to EUR2mn. If firm encounters operating losses, aid up to EUR25mn can be offered to energy intensive industries, and EUR30mn for specific sectors linked to national security or crucial to supply chains such as 'production of aluminum and other metals, glass fibers, pulp, fertilizer or hydrogen and many basic chemicals'