On Thursday, 2 June, the Saeima adopted in the final reading a law on support measures for entrepreneurs facing the economic consequences of the sanctions and countermeasures imposed against Russia in response to its military aggression.
The support is to be provided in the form of financial instruments, and entrepreneurs impacted by the consequences of Russia’s military aggression will be eligible if they have encountered a decrease in demand and turnover, contract termination, disruptions in supply, price increases, and difficulties securing further investments.
Entrepreneurs will be able to receive support in the form of loans, guarantees, or equity investments. Support will not be provided for entrepreneurs who are subject to international or national sanctions. The Cabinet of Ministers will lay down the conditions and procedures for awarding and managing the support.
The support measures will be funded from the State budget, as well as from the money repaid within the crisis loan programme for overcoming the consequences of the spread of the COVID‑19 infection and from the short‑term export credit guarantee programme. The support measures will have to be implemented according to regulations on the control of aid for commercial activity.
Russia’s military aggression has severely affected companies that import metal products from Russia and Belarus in such sectors as metalworking, mechanical engineering, defence, construction, and information and communication technology. It has also affected the food processing industry, in particular, the supply chains in Belarus and Ukraine for such products as grains, plant oils, chocolate, processed fruit and vegetables, sweets, infant formula, and animal feed. As stated in the explanatory note to the Draft Law, Russia’s military aggression has also had a significant impact on energy security and costs.
According to the explanatory note, the new support measures were necessary to help improve the economic situation and overall economic stability of the country by facilitating market reorientation and ensuring productivity.
The Law will come into effect on the day following its promulgation.
Saeima Press Service