25 May 2022

SPANISH SUPPORT FOR RAIL FREIGHT DUE TO WAR IN UKRAINE

On 16 May, the European Commission approved a €1.8 million Spanish scheme to support private rail freight companies in the context of Russia's invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, recognising that the EU economy is experiencing a serious disturbance. Under the scheme, the aid will take form of direct grants. 

The purpose of the scheme is to provide liquidity support to private rail freight companies that operate diesel-powered locomotives and are affected by the fuel prices increase caused by the current geopolitical crisis. The Commission found that the Spanish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid will not exceed €400,000 per beneficiary, and 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. The non-confidential version of the decision will be made available under the number SA.102616 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.

Source: European Commission