The European Commission has approved a €200m scheme that will see Irish firms receive financial support to deal with the fallout from Russia's invasion of Ukraine.

The plan will see the qualifying businesses receive limited amounts of aid of up to €500,000 to help with shortages in liquidity.

It will also allow the Government to provide aid to offset additional costs incurred because of severe increases in natural gas and electricity prices.

However, this is limited to a maximum of 30% of costs recorded up to the end of December this year and capped at €2m.

Companies in the areas of manufacturing, information and communication technology, professional, scientific and technical activities or administrative and support services will be able to access the scheme.

It was approved under the Temporary Crisis Framework agreed in March.

This allows member states to implement exceptional measures under EU state aid rules to address the impact of the Ukraine war.

"The Commission found that the Irish scheme is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a Member State," it said in a statement.

A separate €18m scheme to support Irish hauliers impacted by the invasion was also approved by the Commission earlier this year.