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Commission approves €16 million Finnish scheme to support farmers in context of Russia's invasion of Ukraine

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The European Commission has approved a €16 million Finnish scheme to support the agricultural sector 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. Under this measure, the aid will take the form of tax advantages. In particular, the Finnish Tax Administration will reduce the amount of the real estate tax on the agricultural production buildings due for the fiscal year 2022.

The measure will be open to those farmers affected by the costs increase of production inputs, such as electricity and fertilizers, caused by the current geopolitical crisis. The Commission concluded that the Finnish 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.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “The agricultural sector has been particularly hit by the input costs increase caused by Russia's invasion of Ukraine and the related sanctions. This €16 million scheme will enable Finland to support those farmers 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.” A press release is available online.

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