State aid: Commission approves €836 million Polish scheme to support agricultural sector in context of Russia’s invasion of Ukraine

The European Commission has approved a €836 million (PLN 3.9 billion) Polish 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.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €836 million scheme will enable Poland to support the farmers affected by the input costs increase caused by Russia’s invasion of Ukraine and the related sanctions. 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.”

The Polish measure

Poland notified to the Commission a €836 million scheme to support the agricultural sector in the context of Russia’s invasion of Ukraine.

Under this scheme, the aid will take the form of direct grants.

The measure will be open to farmers active in Poland affected by the increase of fertilizers costs caused by the current geopolitical crisis and the related sanctions.

In order to cover part of the fertilizers costs increase, the eligible beneficiaries will be entitled to receive aid up to €107 (PLN 500)* per hectare of agricultural land and up to €53.5 (PLN 250)* per hectare of grassland and pasture. The aid will be capped at the amount corresponding to 50 hectares.

The Commission’s assessment

The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €35,000 per beneficiary; and (ii) will be granted no later than 31 December 2022.

The Commission concluded that the Polish 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.