Estonia to give Ukraine additional €14 million per year for development
Estonia will give Ukraine €14 million per year for development projects in addition to the 0.25% of its GDP Estonia has pledged for military aid for Ukraine.
Source: ERR, an Estonian news outlet, with reference to Estonia’s state budget strategy
Details: Marijn Ratnik, Vice-Chancellor of the Estonian Foreign Affairs Ministry, said that the Estonian International Development Centre (ESTDEV) will receive €12.8; €1 million will be used to provide humanitarian aid to Ukraine; and another €200,000 will be used to support cooperation between Estonian and Ukrainian businesses, specifically establishing business ties between businesses in the two countries.
ERR reported that this new aid plan has been outlined in Estonia’s long-term development cooperation strategy that the Estonian government approved in early January and is in line with existing plans for the rebuilding of Ukraine.
Ratnik said that the Estonian government has singled out several areas where this funding will be particularly useful.
"Those are the sectors where we ourselves have faced challenges in the past, because we have also had to transition from the same system that Ukraine is now trying to transition from; [the money will be used to support Ukraine’s] education reform, healthcare, and digital and cyber solutions," she explained.
Given the recent announcement of the start of negotiations on Ukraine’s accession to the European Union, Estonia will be able to share with Ukraine its experience in this transition process, as well as in obtaining and utilising EU subsidies, Ratnik added.
She said that current estimates suggest that Ukraine will need €400 billion for post-war rebuilding projects and that only large donors such as the World Bank, the International Monetary Fund, the European Bank for Reconstruction and Development, and the European Investment Bank can provide this type of assistance.
"These institutions don’t just single-handedly implement projects but also help with project-based funding, which [a country] can apply for," Ratnik explained, noting that Estonian firms can do so too.
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