A €16 million support scheme for Finnish farmers, in the context of the Russian invasion of Ukraine, has been approved by the European Commission today (Friday, May 20).
The scheme was approved under the state aid Temporary Crisis Framework to support the agricultural sector in Finland, following the impacts of the war in Ukraine.
The aid provided to Finnish farmers will take the form of tax advantages, including the reduction of the real estate tax on agricultural production buildings which are due for the fiscal year 2022.
Finnish farmers that have been affected by the rise in production costs, including electricity and fertilisers, due to the current geopolitical crisis, will be considered under the scheme.
Executive vice-president, Margrethe Vestager said that the agricultural sector has been particularly hit by the rise in input costs, caused by the war in Ukraine and the related sanctions against Russia. She added:
“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.”
The European Commission said the Finnish scheme is in line with the conditions of the Temporary Crisis Framework, as it will not exceed €35,000 per beneficiary, and will be granted no later than December 31, 2022.
The support scheme for Finnish farmers has been considered “necessary, appropriate and proportionate” by the commission to remedy a “serious disturbance” in the economy of a member state.
This announcement follows a recently approved €1.2 billion support scheme for the agricultural, forestry, fishery and aquaculture sectors in Italy.
The state aid Temporary Crisis Framework was adopted by the commission in March this year to support the economy in the context of the Russian invasion of Ukraine.