By Foo Yun Chee

BRUSSELS (Reuters), EU companies can be affected by Russia sanctions and receive state assistance up to 400,000 euro ($440,360). This includes compensation for up 30% of energy cost under the looser EU aid rules.

Thousands of businesses across 27 countries have experienced severe disruptions due to sanctions, from airlines to carmakers and tourism companies.

For companies in agriculture, fisheries and aquaculture the maximum amount of money available is 35,000 Euro. Businesses that face liquidity difficulties can obtain state guarantees, loans subsidised, or loans with guaranteed terms from the government.

It was not clear from the Commission which sector would be eligible for greater support.

The Commission confirmed a Reuters report on Tuesday that companies facing rising energy costs may be eligible for state assistance up to 30%, capped at two million euros.

Manufacturers of aluminum, other metals and glass fibers will be able to benefit from this measure.

“These sanctions take a toll also on the European economic system and will continue to do so over the next months. Margrethe Vestager (Commission Vice-President) stated that the EU must reduce its economic impact and provide support for severely affected companies and industries in a press release.

The new looser regulations will remain in effect until the end the year. These aids are not available to sanctioned Russian-controlled organizations.

EU Executive, who also serves as competition enforcer for the bloc, has relaxed state aid regulations two years back, allowing governments trillions to be pumped into COVID-19-stricken companies.

($1 = 0.9083 euros)