European Parliament. Photo: Wikipedia

Brussels approve additional support for war-related losses in Germany

European Parliament. Photo: Wikipedia

The EU Commission approved an additional 11 billion euro state aid scheme directed to Germany. The umbrella scheme, as the Commission calls it, is complementary to the 20 billion euros allocated to Germany in late April. The extra funding will be used to compensate companies suffering financial losses due to the war in Ukraine and the related sanctions.

As mentioned before, railway companies can also benefit from the support package since it is available for companies across different sectors. The aid will take the form of guarantees on loans and subsidised loans, administered by federal, regional and local authorities.

Opportunity for rail

Rail freight operators reported an 80 per cent drop in Eurasian volumes after the war in Ukraine occurred. Fewer volumes mean decreased revenue, and state aid schemes are crucial to counterbalance the sector’s financial deficits.

Kristian Schmidt, director for land transport at the Commission, had announced the news of the EU support during the RailFreight Summit Special Edition in Brussels. “With regard to the impact of the sanctions, the EU Commission has issued several decisions allowing state aid and allowing member states to compensate the companies and undertakings that are suffering due to the sanction packages that have been adopted. The state aid isn’t specific to rail or transport but certainly covers transport and rail. So yes, there is a way to support companies that have experienced the negativity of the sanctions”, he said in early April.

The latest support scheme in Germany complementing the one approved by Brussels on 19 April is also in effect under the state aid Temporary Crisis Framework.

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Author: Nikos Papatolios

Nikos Papatolios is editor of, the online magazine for rail freight professionals.

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