22 July 2022


On 20 July, the European Commission adopted an amendment to the State aid Temporary Crisis Framework to support the EU economy in the context of Russia’s invasion of Ukraine. Earlier this month, the Commission consulted Member States on a draft proposal to adjust the Framework.

For reference, the State aid Temporary Crisis Framework, initially adopted on 23 March enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's invasion of Ukraine, via limited amounts of aid, liquidity support or financial compensation to alleviate high energy prices. Besides new measures aimed at accelerating the roll-out of renewable energy and the decarbonisation of industrial processes, the Commission introduced several amendments relating to:

  • The extension of the existing types of support that Member States can give to companies affected by the current crisis or by the subsequent sanctions and countersanctions, up to the increased amount of €500,000.
  • The clarifications of the conditions under which Member States may grant aid to cover the recent increase in gas and electricity costs for companies: the aid may cover only up to 70% of the beneficiary's gas and electricity consumption during the same period of the previous year.
  • Supporting the provision of insurance or reinsurance to companies transporting goods to and from Ukraine: The Commission will consider on a case-by-case basis possible aid for insurance for the transport of goods in Ukrainian territory. To this end, Member States will need to show that the insurance or reinsurance is not available at all or at rates which are substantially higher than before Russia's invasion of Ukraine.’

Source: European Commission