European Commission approves €10 million agricultural support scheme

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The European Commission (EC) has approved a €10 million Latvian scheme to support companies processing agricultural products in the context of the Russian invasion of Ukraine.

The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on March 23 and amended on July 20 2022.

According to the EC: "Under the scheme, the aid will take the form of (i) limited amounts of aid in form of direct grants to compensate companies for the increase in packaging and/or energy costs or for the revenues not earned; and (ii) direct grants for energy-intensive users for the additional costs incurred due to severe increases in natural gas and electricity prices." 

The Commission found that the Latvian scheme is in line with the conditions set out in the Temporary Crisis Framework and when it comes to limited amounts of aid, the support will not exceed €500,000 per company.

As regards aid for additional costs due to exceptional natural gas and electricity price increases, the overall aid per beneficiary will not exceed 30% of the eligible costs, up to a maximum of €2 million. The aid will be granted no later than 31 December 2022.

The Commission 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 Framework. On this basis, the Commission approved the scheme 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 invasion of Ukraine can be found here

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