Brussels, 17 January 2023
The European Commission has approved a €200 million scheme to support companies in the context of Russia’s war against 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 and on 28 October 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU’), recognising that the EU economy is experiencing a serious disturbance.
Under the scheme, the aid will take the form of (i) a deferral in the payment of tax arrears; and (ii) an exemption from the payment of interest due on tax arrears. The measure is open to companies of all sizes and across sectors, with a number of exceptions such as electricity, gas, and water supply, financial, insurance and real estate activities, public administration and defence.
The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Crisis 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 concluded that the Lithuanian 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 aid 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 war against Ukraine can be found here. The non-confidential version of the decision will be made available under case number SA.104926 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission