“Putin is using winter as a weapon against the people of Ukraine. Unable to achieve his objectives on the battlefield, Russia is attacking Ukraine’s energy infrastructure, communications networks and transport system. Ukraine needs help now, and Estonia is taking action. In cooperation with Estonian railway companies, we are sending locomotives to Ukraine to keep goods moving, enable people to travel and ensure the economy continues to function. In addition, we are providing €2 million for Ukraine’s recovery,” said Prime Minister Kristen Michal.
According to the Prime Minister, Estonia is working with international partners to identify opportunities for providing further support to Ukraine. “There are dozens more locomotives in Estonia that Ukraine needs. We are working to secure funding to send those as well. At the Ukraine Reconstruction Conference to be held in Tallinn in January, we want to reach concrete decisions that will help Ukraine both now and in the longer term.”
Minister of Foreign Affairs Margus Tsahkna added that since the beginning of Russia’s full-scale aggression, nearly 600 Ukrainian locomotives have been destroyed by Russia. “Attacks on Ukraine’s transport system have increased significantly since the end of the summer,” he said. “By targeting transport links and vehicles and disrupting the movement of goods and essential resources, Putin aims to isolate Ukraine and further exacerbate the humanitarian situation of its civilian population. Our task is to ensure that this plan fails completely, that Ukraine’s resilience is strengthened and that its economy continues to function.”
To date, 69 locomotives have been identified in cooperation with Estonian railway companies GoRail AS, Operail OÜ and Skinest Rail AS, all of which are ready to hand them over to Ukraine. The locomotives will be delivered to Ukraine in accordance with the technical requirements and needs specified by Ukraine. The funds allocated from the government reserve will make it possible to begin deliveries immediately and send at least six locomotives to Ukraine. The Ministry of Foreign Affairs is working with international donors to secure additional funding to purchase for Ukraine those locomotives owned by Estonian companies whose acquisition costs are not fully covered by the funds allocated from the state budget.
The remaining €2 million will be allocated to support the World Bank’s International Development Association’s Special Program for Ukraine Recovery (SPUR 2.0). The programme aims to support Ukraine’s reconstruction amid Russia’s ongoing aggression.
In addition, the Government decided to propose that the Riigikogu grant a €10 million state guarantee to the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, to support Ukraine’s reconstruction and economy. MIGA provides investors and lenders with protection against political and military risks for which it is difficult to obtain insurance coverage from private insurers in Ukraine. This will help increase foreign investment and trade financing, enable businesses to continue operating and make new investments during the war, and improve opportunities for Estonian companies to operate in Ukraine. The agreement is scheduled to be signed in January at the Ukraine Reconstruction Conference.
