In the context of Russia’s war, the European Commission has approved a €700 million Italian scheme to support companies. Based on Article 107(3)(b) of the Treaty on the Functioning og the European Union (TFEU). This scheme was approved under the State aid Temporary Crisis Framework adopted on 23 March 2022.
The measure will be open to small and medium-sized enterprises (‘SMEs’) and MidCap companies (entities having less than 1,500 employees) active in all sectors that are affected by the current geopolitical crisis and the subsequent sanctions and countersanctions. Companies active in primary production of agricultural products, fishery, aquaculture, banking and financial sectors as well as commercial intermediation and trading companies are however excluded.
The scheme will be open to companies having a total average foreign turnover, during the years 2019, 2020, and 2021, of at least 10% of their total average turnover for the same years. In order to be eligible, companies must also count Ukraine, Russia or Belarus as suppliers for certain portions of their total supplies and foresee. The aid will not exceed €500,000 per company and will be granted no later than 31 December 2022.
The State aid Temporary Crisis Framework, adopted on 23 March 2022, enables Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia’s war against Ukraine.