Varadkar announces €200m scheme to aid Irish businesses affected by Ukraine war

A new €200m scheme has been announced to assist Irish businesses with trading challenges and rising energy costs. 

Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, and the Minister for Public Expenditure and Reform, Michael McGrath, today (October 27) announced details of the Ukraine Enterprise Crisis Scheme. 

The scheme will aid viable but vulnerable firms of all sizes in the manufacturing and internationally traded services sectors; the first stream will assist firms suffering liquidity problems as a result of Russia’s war on Ukraine, and the second stream will also help those impacted by severe rises in energy costs. 

Speaking at the launch the Tánaiste said, "Many businesses are very worried heading into the winter. The cost of energy and doing business is rising. Interest rates are going up. Consumer confidence is waning. The war on Ukraine is driving up energy and commodity prices and it’s making it harder to get certain materials. At a time like this, you can rely on us to back business and protect jobs to ensure a strong economy.

"The Ukraine Enterprise Crisis Scheme will help businesses competing internationally and suffering the broader effects of the war in Ukraine as well as increasing energy costs. 

"It will assist companies most exposed to the significant increases in energy costs largely driven by Russia’s brutal invasion of Ukraine and other negative effects of this crisis. This particular Scheme will not be limited to agency client companies but will be limited to manufacturers and exporters." 

The Cabinet has also approved the publication of legislation to unlock up to €1.2billion in low-cost loans to SMEs (small and medium sized enterprises) and small mid-caps (up to 500 employees) under the Ukraine Credit Guarantee Scheme. 

It will open before the end of the year. 

The Tánaiste continued: "In recent years, the Government, working with the SBCI, has stepped in to underwrite low cost, unsecured loans for business. These State-backed loans are working well: 10,000 SMEs availed of the €2bn Covid Credit Guarantee Scheme. 

"Whatever happens, you can rely on us to make sure that our economy stays strong, so that we have the resources to continue helping you with the cost of living, and continue investing in vital public services and public infrastructure like housing." 

Minister McGrath said, "Government is acutely aware of the impact the situation in Ukraine is having on Irish businesses in terms of trading difficulties as well as rising energy costs. It is important that our supports are wide ranging and can deal with challenges across a number of fronts including falling operating margins, difficulties with supply chains and energy costs. 

"The Ukraine Enterprise Crisis Scheme offers eligible companies financial assistance in a number of ways including assistance in addressing liquidity problems and addressing directly rising energy cost increases. This means that businesses can, with the help of our Agencies, consider what type of assistance would best addresses their particular needs.” 

Head of Food and Sustainability Division with Enterprise Ireland, Mark Christal, said, "This new Scheme will provide two tailored options for support at what is a critical time for many enterprises. This Scheme is open to applications from all eligible Manufacturing and Internationally Traded Services companies, not just those who have an existing relationship with Enterprise Ireland. 

"Importantly, companies applying for assistance will also have to demonstrate that they have an energy efficiency plan in place or are preparing a plan to reduce future energy consumption as the enterprise sector transitions to a more sustainable future.”

The Ukraine Enterprise Crisis Scheme will be implemented through Enterprise Ireland, IDA and Údarás na Gaeltachta. 

The Enterprise, Trade and Employment Committee of the Oireachtas has agreed to the Tánaiste’s request to waive the requirement for pre-legislative scrutiny for this Bill.