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EU clears $11.6 billion German scheme for companies hit by Russia sanctions – Metro US

EU clears $11.6 billion German scheme for companies hit by Russia sanctions

Sun sets over the skyline and ECB in Frankfurt
Sun sets over the skyline and ECB in Frankfurt

BRUSSELS (Reuters) – EU competition regulators on Wednesday approved a 11-billion-euro ($11.58 billion) German scheme to help companies hit by sanctions against Russia, similar to those proposed recently by other EU governments.

Under the German scheme, companies can secure loans covered by a state guarantee not exceeding 90% of the loan amount or receive loans at reduced interest rates to cover their investment and working capital needs.

“This umbrella scheme will enable Germany to mitigate the economic impact of Putin’s war in Ukraine and to further support companies across sectors affected by the current crisis and the related sanctions,” European Competition Commissioner Margrethe Vestager said in a statement.

The European Commission, which acts as the competition enforcer for the 27-country European Union, recently loosened its state aid rules to allow EU governments to aid companies disrupted by the sanctions.

($1 = 0.9499 euros)

(Reporting by Foo Yun Chee)

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