€218 Million in Funding Approved to Aid Bulgarian Agri-Producers Impacted by War in Ukraine
The European Commission has approved a €218 million Bulgarian scheme to support certain agricultural producers in the context of Russia’s invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework.
The measure will be open to micro, small and medium-sized companies active in the primary production of certain agricultural products, which have been affected by the price increase of energy, fertilizers and other input costs, caused by the current geopolitical crisis and the related sanctions.
The primary production of the following agricultural products is covered by the scheme:
- Small and large ruminants
- Fruits and vegetables in particular salads and lettuce, okra and courgette
- Rose oil, wine vines, nuts and tobacco.
Under this scheme, the eligible beneficiaries will be entitled to receive limited amounts of aid in the form of direct grants. The aid amount per beneficiary will be calculated on the basis of the number of animals and of hectares of agricultural land.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said, ‘The agricultural sector has been hit particularly hard by the increases of energy prices and other input costs caused by Russia’s invasion of Ukraine and the related sanctions. This €218 million scheme approved today will enable Bulgaria to support farmers affected by the current geopolitical crisis. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.’
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 invasion of Ukraine.
The Temporary Crisis Framework was amended on 20 July 2022, to complement the Winter Preparedness Package and in line with the REPowerEU Plan objectives.
The Temporary Crisis Framework provides for the following types of aid, which can be granted by Member States:
- Limited amounts of aid, in any form, for companies affected by the current crisis or by the subsequent sanctions and countersanctions up to the increased amount of €62,000 and €75,000 in the agriculture, and fisheries and aquaculture sectors respectively, and up to €500,000 in all other sectors
- Liquidity support in the form of State guarantees and subsidised loans
- Aid to compensate for high energy prices.
- Measures accelerating the rollout of renewable energy.
- Measures facilitating the decarbonisation of industrial processes.