A €160 million (£137m) scheme to support gas intensive companies in Portugal in light of Russia’s invasion of Ukraine has been approved by the European Commission.

Under the Temporary Crisis Framework, the public support will provide limited amounts of aid, not exceeding €400,000 (£343,321) per beneficiary.

It will be be open to companies operating in the manufacturing industry that are particularly reliant on gas for their daily operations and are affected by the high energy prices caused by the current geopolitical crisis.

The Commission found the scheme is “necessary, appropriate and proportionate to remedy a serious disturbance” in Portugal’s economy.

Margrethe Vestager, Executive Vice President in charge of competition policy said: “Gas intensive companies of the manufacturing industry have been particularly hit by the high energy prices caused by Russia’s invasion of Ukraine and the related sanctions.

“This €160 million scheme will enable Portugal to support those companies. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.”

The grants will be provided no later than 31st December 2022.