The European Commission has approved a €5bn German scheme to support energy and trade intensive companies across industrial sectors in the context of Russia's invasion of Ukraine. The scheme was approved under the EU’s State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, recognising that the EU economy is experiencing serious disturbances.
Under this scheme, which will be administered by the German Federal Office for Economic Affairs and Export Control, the aid will take the form of direct grants for additional costs due to severe increases in natural gas and electricity prices. The measure will be open to energy and trade intensive companies across industrial sectors that are at risk of carbon leakage. The eligible period for aid applications will run from February to September 2022. The aid will be granted in the form of advance payments. The final amount will be then verified and corrected by 30 June 2023.
The aid per beneficiary cannot exceed 30% of the eligible costs, up to a maximum of €2m. Energy-intensive users that incur operating losses may receive further aid up to €25m and, if they are active in particularly affected sectors, up to €50m.The aid for energy intensive users that suffer operating losses cannot exceed 50% of the eligible costs and 70% for those active in particularly affected sectors. The overall aid can cover a maximum of 80% of the losses. The public support will be granted until 31 December 2022.
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