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State aid: Commission approves €435.4 million Polish scheme to support the wheat production sector in the context of Russia’s war against Ukraine
The European Commission has approved an approximately €435.4 million (PLN 2 billion) Polish scheme to support the wheat production sector in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
Under the scheme, the aid will consist in limited amounts of aid in the form of direct grants. The purpose of the measure is to support the liquidity needs of wheat producers, affected by the current geopolitical crisis and in particular by the massive grain imports from Ukraine, which have strongly impacted the Polish wheat domestic grain market.
The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €250,000 per beneficiary; and (ii) will be granted no later than 31 December 2023. The Commission concluded that the 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 and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the Temporary Crisis and Transition Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine and foster the transition towards a net-zero economy can be found can be found here. The non-confidential version of the decision will be made available under the number SA.107274 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
