European companies hit by Russia sanctions can receive state support of up to 400,000 euros

24-03-2022

This is the second time that Brussels has relaxed state aid to companies, after doing so about two years ago due to the covid-19 pandemic.

Companies in the European Union that are directly affected by sanctions against Russia for its invasion of Ukraine may receive up to 400,000 euros in state aid, according to a European Commission document, cited by Reuters.

With specific regard to companies in the agriculture, fisheries and aquaculture sectors, they may obtain up to 35,000 euros in direct subsidies and tax advantages and guarantees, the document states.

Companies affected by increases in gas and electricity prices can obtain support up to 30% of eligible costs, with a maximum value of 2 million euros per company, the document also states.

Additionally, companies facing a liquidity crisis can apply for a public guarantee for their loans up to 15% of their total average annual turnover over the last three closed accounting periods or 50% of energy costs for one year.

This is the second time that Brussels has relaxed state aid to companies, having done so about two years ago because of the covid-19 pandemic. However, this guarantee has a six-year limit.

Source: EXPRESSO