The European Commission has greenlighted a €2bn French guarantee scheme to support energy-consuming companies in the context of Russia's invasion of Ukraine. Under this measure, the aid will take form of public counter-guarantees aimed at covering unfunded guarantees issued by financial intermediaries on behalf of companies for the collateral requirements stemming from their energy supply contracts.
The scheme will be open to energy-consuming companies active in France whose consumption in electricity has been greater than 1 GWh in 2022, for guarantees granted in the context of electricity supply contracts; or whose consumption in gas has been greater than 2 GWh in 2022, for guarantees granted in the context of gas supply contracts.
These companies are currently facing an increasing level of collateral requirements in light of the rise of the costs of electricity and natural gas. The scheme will be administered by the Caisse centrale de réassurance, the state-owned French public reinsurer.