The European Commission has approved the Government’s €200 million aid scheme for businesses affected by the war in Ukraine, describing it as a “necessary, appropriate and proportionate” measure to blunt the impact of the economic fallout.
Open to companies in the manufacturing, information and communication, scientific and administrative sectors among others, businesses can apply for funding of up to €500,000 to help with shortfalls in liquidity that may arise due to the war.
Businesses can also apply for funding to assist with additional costs incurred due to elevated energy prices up to the end of December. But this is capped at 30 per cent of costs up to a total value of €2 million.
In a statement today, the commission said the scheme was compatible with European state aid rules.
Under the terms of the Temporary Crisis Framework, adopted by the European Union to support the bloc’s economy in the wake of Russia’s invasion of Ukraine, member states have been given extra elbow room to provide support to businesses affected by blowback from the war, which has fuelled energy price inflation and forced many European companies to withdraw from Russia because of sanctions.