Commission approves €50 million Austrian State aid scheme to support primary agricultural producers in the context of Russia’s war against Ukraine

The European Commission has approved an approximately €50 million Austrian scheme to support primary agricultural producers in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework (“TCTF”), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.

Under the scheme, the aid will consist in limited amounts of aid in the form of direct grants. The measure will be open to primary agricultural producers that are at risk of losing financial liquidity due to the difficulties in the agricultural market provoked by the Russia’s war against Ukraine.

The Commission found that the Austrian scheme is in line with the conditions set out in the TCTF. In particular, the aid (i) will not exceed €280,000 per beneficiary; and (ii) will be granted no later than 31 December 2024. 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 TCTF. On this basis, the Commission approved the scheme under EU State aid rules.