The European Commission on Friday endorsed a €437 million plan which Croatia has prepared "to support companies in the context of Russia's invasion of Ukraine," state news agency Hina announced.

The purpose of the scheme is to remedy the liquidity shortage that Croatian companies are facing as result of the serious disturbance of the economy caused by Russia’s invasion of Ukraine.

The European Commission said that “as for the direct grants covering guarantee premiums, the aid will not exceed (i) €62,000 per company active in the agricultural sector, (ii) €75,000 per company active in the fishery and aquaculture sectors, and (ii) €500,000 per company in all other sectors.”

“When it comes to the guarantees on loans, the State may guarantee up to 80% of the loan principal with maximum maturities of up to eight years and with guarantee premiums that respect the minimum levels set out in the Temporary Crisis Framework. For both sub-measures, the aid will be granted no later than 31 December 2022.”

The Commission concluded that the scheme is “necessary, appropriate, and proportionate” to remedy a serious disturbance in the economy of Croatia.