SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine

(European Commisson, Brussels, 6 March 2023) The European Commission has approved, under EU State aid rules, an  amendment to an existing Italian guarantee scheme, including an up to €3 billion budget increase, for the reinsurance of natural gas and electricity trade credit risk in the context of Russia's war against Ukraine. The amendment was approved based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU'), recognising that the EU economy is experiencing a serious disturbance. Under the administration of SACE, the Italian Export Credit Agency, the scheme  ensures that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. This measure will also make it easier for these customers to obtain a postponement of payment of their energy bills by up to 24 months, based on an agreement with their energy supplier. At the same time, it will ensure that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. The reinsurance of natural gas and electricity trade credit risk was deemed necessary in the context of Russia's war against Ukraine.

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