EU approves $9.8B state aid for Finnish electricity producers

By Tuba Sahin

ANKARA (AA) - The European Commission on Friday approved a €10 billion ($9.8 billion) state aid for Finnish electricity producers amid Russia's war on Ukraine.

"In the context of economic uncertainty caused by the current geopolitical crisis, this €10 billion loan guarantee scheme will enable Finland to provide liquidity support to electricity producers, allowing them to continue their activities," Vice President Margrethe Vestager said in a statement.

Under the scheme, the loans will be granted directly by Finland's Finance Ministry.

Electricity producers with a production capacity of at least 100 megawatts and other producers with regional importance, significance or criticality in electricity markets will benefit from the aid measure.

The measure aims at providing electricity producers with a last-resort financing option, ensuring that sufficient liquidity remains available to them, said the statement.