The Romanian Government will use the Temporary Crisis Framework, adopted by the European Commission, to support the economy in the context of Russia's invasion of Ukraine, minister of finance Adrian Caciu promised.

"Under the Framework, grants can be awarded from EUR 35,000 for companies affected by the crisis active in the agriculture, fisheries and aquaculture sectors to up to EUR 400,000 per company affected by the crisis active in all other sectors, to consolidate the working capital, liquidity and for helping the companies to overcome this complicated economic situation," minister Caciu explained, according to Adevarul.ro.

State aid schemes can be set in place for energy companies, large energy consumers, but also for large companies in the aluminium industry or for natural gas-intensive companies, he added.

This aid does not need to be linked to an increase in energy prices, as the crisis and the restrictive measures against Russia affect the economy in multiple ways, including physical supply chain disruptions, according to a European Commission statement on the Framework. This support can be granted in any form, including direct grants, the EC stressed.

The sanctions adopted by the EU against Russia also take a toll on the European economy and will continue to do so in the coming months, executive Vice-President Margrethe Vestager, in charge of competition policy, explained.

"We need to mitigate the economic impact of this war and to support severely impacted companies and sectors. And we need to act in a coordinated manner," she explained the logic of the state aid.

The Temporary Crisis Framework applies until 31 December 2022.

andrei@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)