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The government approved 94.9 million euros in support of companies to mitigate the effects of the war in Ukraine

In support of the bill “Law on Supporting Economic Consequences of Sanctions and Countermeasures for Russia’s Military Assault on Ukraine”, the government on Tuesday approved € 94.9 million in support for companies affected by Russia’s military aggression in Ukraine.

It is planned that economic operators affected by the effects of military aggression in Ukraine, such as declining demand, declining existing contracts, declining turnover, disruption of the supply chain, rising prices and restrictions on further investment, will qualify for support. No aid will be provided to economic operators subject to international or national sanctions.

Company support will be provided in the form of financial instruments – EUR 39 million for working capital and investment loans, EUR 22.5 million for guarantees and another EUR 1.3 million for export credit guarantees. Also 32.1 million euros – for investments in companies to adapt their business models, improve export capacity, conquer new markets, new technologies and process optimization, as well as product development in the conditions of Russia’s military aggression against Ukraine, attracting private financiers , thus facilitating. market access.

It is planned that new support programs for loans, guarantees and export guarantees will be submitted to the government for consideration in early June, and the equity fund program – by August. Support programs for entrepreneurs will be available after the adoption of the draft law in the Saeima and coordination of support programs with the European Commission.

State funding is provided for the implementation of new support programs, which have already been awarded to the JSC “Attīstības finansīcija” Altum “(” Altum “) in accordance with the Covid-19 Infection Act. , as well as financing reimbursed under the short-term export credit guarantee scheme. During the government meeting, Economy Minister Jānis Vitenbergs (NA) mentioned that the separate regulations in the cabinet will be developed to provide support, which will specify the conditions for receiving support.

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During the discussion on the adoption of the bill, Justice Minister Jānis Bordāns (K) expressed the view that the state would not need to support entrepreneurs who, having been in the Donbass war for eight years, continued their business in Russia. The Minister of Justice also pointed out that, because the law does not set requirements for companies to receive support, there is a risk of corruption. Bordan hopes that these risks can be eliminated by the rules of the Cabinet of Ministers mentioned by Wittenberg, however, according to the current wording, it turns out that everyone can get support. At the same time, Bordan also explained that he could initially misunderstand the procedure for providing support – the Justice Minister felt that the state would support those entrepreneurs who had already moved away from the Russian market and move their export markets to the West the.

During the meeting, Finance Minister Jānis Reirs (JV) pointed out that due to the war in Ukraine, companies involved in the extraction of raw materials faced special problems. Reirs also asked Altum to provide information on how much money was given to entrepreneurs during the Covid-19 crisis and how much the state had lost.

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