Brussels (Brussels Morning Newspaper) – EU Commission approves two Bulgarian State aid projects amounting to €84 million and €84.9 million to fund farmers in the context of Russia’s war against Ukraine.
The European Commission has endorsed a roughly €84 million (BGN 164 million) Bulgarian scheme to back producers of grain and oilseed crops and an about €84.9 million (BGN 166 million) scheme to fund farmers in the context of Russia’s war against Ukraine. The schemes were authorised under the State Aid Temporary Crisis and Transition Framework (‘TCTF’), assumed by the EU Commission on 9 March 2023 and updated on 20 November 2023 and on 2 May 2024.
Which farmers are eligible for the €84 million grants?
According to the Commission, under the schemes, the aid will comprise fixed amounts of aid in the form of direct grants. The first step will be open to producers of certain grain and oilseed crops (namely wheat, barley, rapeseed, corn and sunflower) that are in danger of losing financial liquidity due to the problems in the agricultural market induced by Russia’s war against Ukraine.
The second measure will be available to primary agricultural producers engaged in the sectors of large and small ruminants, bee colonies, fruit and vegetables, oilseed rose, vineyards and tobacco that are confronting liquidity shortages and are directly impacted by the serious disturbance of the economy generated by Russia’s war against Ukraine.
Why did the EU approve two Bulgarian State aid projects?
The EU Commission figured that the Bulgarian schemes are in line with the requirements set out in the TCTF. In special, the aid (i) does not surpass €280,000 per beneficiary; and (ii) is given no later than 31 December 2024. Also, the Commission concluded that the procedures are necessary, appropriate and proportionate to fix a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions outlined in the TCTF. On this basis, the Commission authorised the schemes under EU State aid rules.
