By Jan Strupczewski

BRUSSELS, (Reuters) – The EU’s finance ministers agreed to support household fuel prices and provide assistance to businesses affected by the soaring energy costs as a consequence of Russia’s invasion in Ukraine on Tuesday, Bruno le Maire, French Finance Minister said.

The price of food and gas is on the rise due to the conflict in Ukraine. After chairing discussions between EU ministers, le Maire said that this calls for coordinated economic responses by European countries.

Le Maire from France holds the rotating six month presidency of the 27 member EU. He said that the EU had made proposals by the European Commission to relax EU sanctions on state aid in order to assist with the Ukraine crisis.

The strategy has three main components. Support for all affected households by the steep rise in fuel costs. Le Maire stated that the French did this in France, and others across Europe have also done it.

It would also be an offer to reduce the prices of gasoline. Many people are forced to travel by car to get to work. “The support for households that we deem necessary,” said he.

Second, support was provided to companies most affected by rising gas prices. These grants or loans would provide financial assistance to large energy consumers.

Third, diversifying energy sources was necessary to make the bloc independent from Russia, which supplies 45% of its energy, 25% of its oil, and 50% of its coal.

We must make our country energy independent as quickly as possible. “We need to increase investment. We must diversify our sources of energy.

Valdis Dombrovskis Vice President European Commission said that EU countries could fund such investments using extremely low-interest loans under the EU recovery fund.

Dombrovskis said that 200 billion euros are available for loans, which members can apply to until August 2023 in order to fund more investments and reforms.

It is huge and can be used to address certain conflicts, for instance to increase the production of renewables.