The European Commission has signed off on a €1.2 billion support scheme to help companies and businesses in Ireland impacted by Russia's war against Ukraine.

The new support scheme will provide limited amounts of aid, in any form, of up to €300,000 for companies operating in the agriculture, fisheries and aquaculture sectors and up to €2 million in all other sectors.

The support will chiefly be in the form of guarantees on loans and will be available to primary producers across all sectors.

The commission approved the scheme under the Temporary Crisis Framework which allows member states to support economies which have been impacted directly or indirectly by the war. 

It signed off on the latest Irish support scheme today as it "concluded that the Irish scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state".

Margrethe Vestager, executive vice-president in charge of competition policy, said:

Under the Temporary Crisis Framework Ireland can benefit from the following types of support:

Previously the European Commission also backed a €60 million scheme to support the agricultural sector and Irish farmers under European Union state rules.