The Economy Ministry said on Friday that it is working on a credit assistance programme to support those companies that have been hit hard by the EU sanctions against Russia.

“We are also taking a close look at the EU’s framework for state aid,” a spokesperson told dpa.

The European Commission proposed on Thursday that companies affected by the consequences of the war against Ukraine could be granted loans with favourable interest rates or given limited subsidies because of the current sharp rise in gas and electricity prices.

“Of course we will help where companies would otherwise be brought to their knees because of the effects of sanctions,” the spokesperson said.

The Handelsblatt financial newspaper reported previously that that the German government was considering, among other things, setting up a fund similar to the one established to help firms through the coronavirus crisis.

The EU has imposed far-reaching sanctions targeting Moscow because of the Russian invasion of Ukraine. These are also likely to have an impact on the economy in the European Union.