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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LT-2022-46/3016 – measures in Lithuania

Subsidies to energy-intensive undertakings

Subsidijos energijai imlioms įmonėms

Country Lithuania , applies nationwide
Time period Temporary, 10 November 2022 – 28 December 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Inga Blaziene (Lithuanian Centre for Social Sciences) and Eurofound
Measure added 26 January 2023 (updated 21 April 2023)

Background information

On 10 November 2022, the Procedure for granting and administering subsidies to undertakings operating in sectors severely affected by increases in energy prices, approved by Government Resolution No. 1084 came into effect that foresaw the support for the most energy-intensive undertakings in Lithuania. The measure aims at mitigating the negative effects of energy price increases in highly energy-intensive sectors in Lithuania.

Content of measure

According to the Procedure, energy-intensive undertakings are defined as undertakings where energy consumption accounted for 10% or more of their total costs in 2021 and 2022. Business sectors that are eligible for the measure include undertakings engaged in the following economic activities: mining of metal ores; manufacture of textiles; manufacture of wearing apparel; manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials; manufacture of paper and paper products; manufacture of coke and refined petroleum products; manufacture of chemicals and chemical products; manufacture of other non-metallic mineral products; manufacture of basic metals.

The subsidy is only available to undertakings that have received invitation from the State Tax Inspectorate (STI) and meet all the criteria set out in the Procedure. The amount of the subsidy is linked to the taxes paid by the undertaking (personal income tax and corporate income tax). The maximum aid accounts for 30% of the declared personal income and corporate income taxes. The maximum amount of the subsidy is €500,000 and the minimum is €500. The subsidy funds will be transferred to the undertakings by 28 December 2022.

Use of measure

At the beginning of November 2022, the STI selected 2,200 undertakings severely affected by energy prices and sent them personal invitations to apply for a non-refundable subsidy by 22 November 2022. The budget for the measure is €30 million.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Employers' organisations
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Consulted
Form Not applicable Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level


Employers organisations were partially involved in the design of the measure. E.g., on 8 September 2022, representatives of the country’s largest industrial companies attended a meeting of the Committee on Budget and Finance of the Seimas (Parliament) of the Republic of Lithuania, where they presented the current business situation and stressed the need for state aid. Subsidies were one of the measures, the necessity of which was emphasised by the majority of representatives of the employers' organisations

Views and reactions

In general, the measure was welcomed by representatives of major employers’ organisations in Lithuania. However, there has also been some criticism from the employers. Some businesses argued that the Government has not chosen the right criteria for identifying energy-intensive undertakings. According to the representatives of furniture manufacturing and textile companies, despite the significant increase in energy costs, some manufacturing companies will not be identified as energy-intensive undertakings, as increased costs of raw materials account for a larger share of their costs. According to them, prices of raw material should be eliminated when calculating compensation for energy-intensive undertakings.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      B - Mining And Quarrying B7 Mining of metal ores
      C - Manufacturing C13 Manufacture of textiles
      C14 Manufacture of wearing apparel
      C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
      C17 Manufacture of paper and paper products
      C19 Manufacture of coke and refined petroleum products
      C20 Manufacture of chemicals and chemical products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals

This case is not occupation-specific.


  • 17 October 2022: It is not clear to the businesses how the support promised by the state will be distributed (Verslui neaišku, kaip bus dalijama valstybės žadama parama (
  • 28 October 2022: Resolution No 1084 of the Government of the Republic of Lithuani (


Eurofound (2023), Subsidies to energy-intensive undertakings, measure LT-2022-46/3016 (measures in Lithuania), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.