Brussels, 24 March 2023
The European Commission has approved a €100 million Lithuanian scheme to support companies in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
Under the scheme, the aid will be granted in the form of exemption from the payment of interests on the deferred amounts of social security contributions. The scheme will be open to companies of all sizes, active in Lithuania, which are facing financial difficulties in light of the current energy crisis. In order to be eligible, a company must have energy costs amounting to at least 10% of their total operating costs.
The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will not exceed €250,000 per beneficiary active in the primary production of agricultural products, €300,000 per beneficiary active in the fishery and aquaculture sectors and €2 million per beneficiary active in all other sectors; and (ii) will be granted no later than 31 December 2023. The Commission therefore concluded that the 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 and Transition Framework. On this basis, the Commission approved the measure under EU State aid rules.
More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine and foster the transition towards a net-zero economy can be found here. The non-confidential version of the decision will be made available under the number SA.106380 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission