Estonia Commits €14 Million Annually to Support Ukraine’s Development

by Roman Cheplyk
Friday, January 19, 2024
Estonia Commits €14 Million Annually to Support Ukraine’s Development

Estonia has pledged to allocate an annual sum of €14 million to aid Ukraine’s development. This commitment is outlined in the country’s state budget strategy, as explained by Marijn Ratnik, the Vice-Chancellor of Estonia’s Ministry of Foreign Affairs.

The breakdown of the allocated funds is as follows:

  • €12.8 million will be directed to the Estonian Development Cooperation Center (ESTDEV).
  • €1 million is earmarked for humanitarian assistance to Ukraine.
  • €200,000 will support Estonian business cooperation with Ukraine, primarily focusing on establishing business contacts with Ukrainian partners.

This assistance aligns with Estonia's long-term development cooperation strategy, which was approved by the government in early January. It also follows the principles and action plan for Ukraine's recovery.

Ratnik highlighted that Estonia has identified key sectors where its contributions can be most effective, drawing on its own past experiences. These sectors include education system reform, healthcare system development, and digital and cyber solutions. Additionally, real construction assistance is anticipated, with Estonia ready to support Ukraine in implementing new and efficient systems and processes. One example is a kindergarten in Zhytomyr, Ukraine, built with innovative spatial solutions and accompanied by relevant educator and teacher training.

As Ukraine begins negotiations for EU accession, Estonia plans to share its experiences in this process and in utilizing EU fund subsidies.

Ratnik emphasized the enormous post-war reconstruction costs for Ukraine, estimated at €400 billion. Such substantial funding is expected to come from major donors like the World Bank, IMF, EBRD, and the European Investment Bank. These institutions typically offer project financing rather than direct project implementation.

In 2023, the ESTDEV budget was €21.9 million, with significant development cooperation funds also provided by the Academy of Electronic State and non-profit organizations such as Mondo ja Pagulasabi, mainly from extra-budgetary sources.

Estonia's comprehensive support package reflects its commitment to aiding Ukraine's recovery and development amidst ongoing challenges and the broader European integration process.

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