The European Commission has approved a €154 million (SEK 1,635 million) Swedish scheme to support the livestock sector and the greenhouse production in the context of Russia’s invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU’), recognising that the EU economy is experiencing a serious disturbance.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The price increase of electricity, animal feed and fuel caused by Russia’s invasion of Ukraine and the related sanctions has hit particularly hard the agricultural sector. This €154 million scheme will enable Sweden to support livestock and greenhouse producers 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 Swedish measure
Sweden notified to the Commission a €154 million (SEK 1,635 million) scheme to support the livestock sector and the greenhouse production in the context of Russia’s invasion of Ukraine.
Under this scheme, the eligible beneficiaries will be entitled to receive limited amounts of aid in the form of direct grants.
Livestock producers will be entitled to receive a fix aid amount per animal. On the other hand, the individual aid amount for greenhouses will be calculated based on the number of heated square meter of greenhouse area used for the production of fruits, berries, vegetables, mushrooms, sprouts, spices or ornamental plants during the period between February and June 2022.
The measure will be open to companies of all sizes active in the livestock and greenhouse sectors affected by the price increase of electricity, animal feed and fuel caused by the current geopolitical crisis and the related sanctions.
The Commission found that the Swedish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €35,000 per beneficiary; and (ii) will be granted no later than 31 December 2022.
The Commission concluded that the Swedish scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework.
On this basis, the Commission approved the aid measure under EU State aid rules.