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The European Commission has approved an €18 million Irish scheme to support the road haulage 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.

Executive Vice-President Margrethe Vestager, in charge of competition policy, yesterday said:

“This scheme will enable Ireland to support the road haulage sector affected by the fuel prices increase caused by the current geopolitical crisis. This is an important step to mitigate the economic impact of Putin's war against Ukraine. We continue to stand with Ukraine and its people. At the same time, we continue to work 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 Irish measure

Ireland notified to the Commission an €18 million scheme to support road haulage operators in the context of Russia's invasion of Ukraine.

The purpose of the scheme is to provide liquidity support to road haulage operators affected by the fuel prices increase caused by the current geopolitical crisis and the related sanctions. The measure aims at mitigating the risk of insolvency for these businesses while ensuring the uninterrupted movement of goods by road.

The measure will be open to road haulage operators of all sizes with a valid operating license in Ireland that are affected by the current crisis

Under the scheme, the beneficiaries will be entitled to receive limited amounts of aid in the form of direct grants.

The Commission's assessment

The Commission found that the Irish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €400,000 per company; and (ii) will be granted no later than 31 December 2022.

The Commission concluded that the Irish 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.

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