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In addition to 0.25% of GDP: Estonia will allocate 14 million euros per year to Ukraine for the development of the country

We are talking about reform of the education system, development of the healthcare system, digital and cyber solutions, as well as construction.

In addition to 0.25% of its gross domestic product intended for military assistance to Ukraine, Estonia will annually allocate 14 million euros to Kiev as part of development cooperation, ERR reports, citing data from the state budget strategy.

Vice-Chancellor of the Estonian Ministry of Foreign Affairs Mariin Ratnik explained that from this amount, 12.8 million euros will be allocated for relevant purposes to the Estonian Center for Development Cooperation (ESTDEV), one million euros – for humanitarian aid to Ukraine and 200,000 euros – in support of Estonian cooperation with Ukraine business. In the latter case, we are mainly talking about establishing business contacts with Ukrainian partners.

This assistance will be allocated based on the long-term strategy of Estonia in the field of development cooperation, as well as the principles and action plan for restoration of Ukraine.

Ratnik added that the government has also clarified the areas in which the funds allocated by Estonia can be most useful. We are talking about the reform of the education system, the development of the healthcare system, digital and cybernetic solutions.

In addition, Ukraine needs all kinds of assistance in the field of real construction, which Estonia is ready to provide. In addition to financial assistance, Estonia will offer Ukraine support for the implementation of new and more efficient systems and processes. As an example, Ratnik cited a kindergarten in Zhytomyr, built with spatial solutions new to Ukraine.

Ratnik emphasized that post-war costs for the restoration of Ukraine are estimated at 400 billion euros, and such money can only be allocated by major donors, such as the World Bank, the International Monetary Fund, the European Bank for Reconstruction and Development, and the European Investment Bank etc.

“All of these institutions do not implement projects on their own, but offer project financing for which you can apply,” Ratnik explained, noting that Estonian companies will also be able to take part in this process.

< She added that this would also generate tax revenue for Estonia.

ESTDEV's budget in 2023 amounted to 21.9 million euros. Ratnik and Jaerats noted that large funds for development cooperation are also allocated by the Electronic State Academy and non-profit organizations Mondo ja Pagulasabi, the bulk of the funding of which comes from extra-budgetary sources.

Recall that Estonia will provide Ukraine with 1.2 billion euro aid until 2027.

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