The European Commission has authorised a Luxembourg aid scheme worth €225 million to support businesses in the context of Russia's invasion of Ukraine.
This aid scheme was authorised under the Temporary Crisis Framework for State Aid measures adopted by the Commission on 23 March 2022, in recognition of the fact that the European Union (EU) economy is experiencing serious disruption.
Under this scheme, aid will take the form of limited amounts of aid through direct grants for companies heavily dependent on diesel and direct subsidies in favour of large energy consumers to cover the additional costs generated by the sharp increases in the prices of natural gas and electricity.
The Commission concluded that the Luxembourg scheme complied with the conditions set out in the Temporary Crisis Framework. In particular, as regards limited aid amounts, the aid will not exceed €400,000 per company, which is below the maximum ceiling of €500,000 that EU Member States can grant in the form of limited aid under the Temporary Crisis Framework. Regarding aid intended to cover additional costs due to exceptional increases in the prices of natural gas and electricity, the overall aid per beneficiary may not exceed 30% of the eligible costs, up to a maximum of €2 million. Large energy consumers who suffer operating losses can benefit from additional aid of up to €25 million and, if they operate in particularly affected sectors and sub-sectors, up to to €50 million.
The Commission found that the Luxembourg scheme was necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in accordance with the Treaty on the Functioning of the European Union (TFEU) and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the scheme under EU state aid rules.