Estonia

Since the beginning of the pandemic, the Commission has adopted support measures under the state aid Temporary Framework and EU state aid rules. These measures aim to help citizens and companies and mitigate the significant economic impact of the coronavirus pandemic:

• on 7 December 2021, the Commission approved a €5.5 million scheme to support dairy and pork meat producers affected by the coronavirus outbreak. The assistance, in the form of direct grants, aims to address the liquidity needs of the beneficiaries and help them continue their activities during and after the outbreak.

• on 29 July 2021, the European Commission has approved a €1.8 million Estonian scheme to support fish processors. The public support will be open to fish processors affected by business disruption due to the coronavirus outbreak and its consequent impact on the fisheries supply chain and consumer demand. Under the scheme, the aid will take the form of direct grants. 

• on 14 June 2021, the Commission approved a €10.6 million scheme to support companies active in the cultural and sport sectors affected by the coronavirus outbreak. Under the state aid Temporary Framework, the assistance, in the form of direct grants, aims to cover the costs incurred by the beneficiaries for restructuring their business and continue to operate under the restrictive and precautionary measures imposed by the government to limit the spread of the virus. 

• on 14 June 2021, the Commission approved a €1.5 million scheme to support operators of experience centres and buildings used for conferences, theatres, concerts and other similar events, in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the assistance, in the form of direct grants, aims to compensate these operators for the damage suffered due to the suspension or disruption of their activities due to the restrictive measures imposed by the government to limit the spread of the virus.

• on 4 June 2021, the Commission approved a €4 million scheme to support bus companies in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to mitigate the liquidity shortages faced by the beneficiaries due to the restrictive measures imposed by the government to limit the spread of the virus.

• on 27 May 2021, the Commission approved a scheme to support film producers and distributors, as well as cinemas affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to help film production and distribution companies and cinemas address the liquidity shortages faced due to the coronavirus outbreak and the government-imposed restrictions.

• on 12 May 2021, the Commission approved a €44 million scheme to support companies active in the tourism and retail sectors affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to help the beneficiaries address their liquidity needs and continue their activities during and after the outbreak.

• on 10 May 2021, the Commission approved a €8.8 million scheme to support organisers of cultural events in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to mitigate the sudden liquidity shortages the beneficiaries are facing due to the coronavirus outbreak.

• on 15 April 2021, the Commission approved a €10 million scheme to support research and development in products relevant to the coronavirus outbreak. The aim of the scheme is to support coronavirus-relevant and other antiviral-relevant experimental development projects (vaccines, medicines, medical devices, hospital and medical equipment, disinfectants, protective clothing and equipment, etc.), as well as the development of innovative processes for their efficient production.

• on 25 March 2021, the Commission approved an Estonian scheme of €9.9 million to support companies active in the tourism and tourism-related sectors affected by the coronavirus outbreak. Under the state aid Temporary Framework, the aid, in the form of direct grants, aims to help the beneficiaries address their liquidity needs and continue their activities throughout the pandemic.  

• on 15 March 2021, two Estonian schemes with a total budget of €15.8 million, aimed at supporting farmers affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to help the beneficiaries address their liquidity needs and continue their activities during and after the coronavirus outbreak.

• on 18 February 2021, a €26.3 million Estonian scheme to support companies in Ida-Viru and Harju Counties whose activities were limited or restricted due to the measures imposed by the government to limit the spread of the coronavirus. The scheme addresses companies, non-profit organizations, foundations and self-employed persons in the accommodation and food service, information and communication, education, health, entertainment, recreation, food service and social work sectors. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to address the liquidity needs of the beneficiaries and help them continue their activity during and after the outbreak. 

• on 18 February 2021, €3.2 million Estonian scheme to support organisers of cultural events in Ida-Viru County and Harju County in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to mitigate the sudden liquidity shortages that companies are facing due to the coronavirus outbreak.

• on 4 December, a €10 million Estonian scheme to support industrial research and experimental development by companies affected by the coronavirus outbreak, as well as coronavirus-related research and development. The scheme, co-financed by the European Regional Development Fund and approved under the state aid Temporary Framework, is made of two sub-measures: aid designed to remedy the economic damage and support those facing liquidity shortages, and aid for coronavirus-relevant research. The public support will take the form of direct grants under both sub-measures. Any result of the research activities will be made available to third parties in the European Economic Area at non-discriminatory market conditions through non-exclusive licences.

• on 26 November, a €5.5 million Estonian scheme to support companies active in the tourism sector affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, was earmarked for accommodation providers, travel agencies, tourism attraction operators, tourism service providers, international coach service providers, conference organisers and tourist guides. The purpose of the measure is to mitigate the sudden liquidity shortages that these companies are facing due of the restrictive measures imposed by the government to limit the spread of the virus. 

• on 7 October, the Commission approved a €1.5 million Estonian scheme to support the food processing sector in the context of the coronavirus outbreak. The scheme,  approved under the State aid Temporary Framework, will allow for support in the form of direct grants to micro, small and medium-sized companies active in the food processing sector. The purpose of the scheme is to help the beneficiaries address their liquidity needs and to help them continue their activities during and after the coronavirus outbreak;

• on 11 August 2020, a €30 million Estonian measure to provide a share capital increase and a subsidised interest loan to the state-owned aviation company “Nordica Aviation Group AS” (“Nordica”). Estonia notified to the Commission a share capital increase of €22 million, as well as a subsidised interest loan of €8 million to the company. Nordica has established business partnerships with major airlines in Northern and Eastern Europe and therefore plays a key role in Estonia's connectivity. Nordica has suffered significant losses due to the severe disruption of air passenger transport caused by the emergency measures necessary to limit the spread of the coronavirus. This had an adverse impact on the company's financial position and, as a result, Nordica is facing severe liquidity issues, as well as the risk of insolvency by the end of the year.

• on 10 July 2020, under EU State aid rules, a €20 million Estonian scheme to compensate four international passenger ferry operators active on the routes connecting Estonia with Finland and with Sweden for damages suffered due to the coronavirus outbreak. Since mid-March, the Estonian authorities have put in place travel restriction measures necessary to limit the spread of the virus. These restrictions resulted in a sharp decline in passenger numbers and severely affected the revenues of the ferry operators. Under the scheme, these four operators will be entitled to compensation for damages incurred while travel restrictions were in place, in the form of direct grants. The Commission found that the scheme is in line with Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak.

• on 29 May 2020, a €4 million Estonian scheme to support businesses renting premises in shopping centres, in the context of the coronavirus outbreak. The public support, which will take the form of direct grants, is intended to cover part of the rent due by businesses located in shopping centres. The amount of public support to which businesses will be entitled under the scheme will match, up to a maximum amount of 25% of the rent, the discounts that each lessor may decide to apply on the rents in view of the current crisis situation. This aims at incentivising the private sector to contribute towards the objective of mitigating the impact of the coronavirus outbreak. The purpose of the scheme is to mitigate the sudden liquidity shortages that non-essential businesses in shopping centres are facing due to the closure imposed by the Estonian State between 27 March and 11 May to limit the spread of the coronavirus.

• following the approval of two Estonian aid schemes on 30 March 2020, the Commission has approved two additional Estonian State aid schemes to support companies affected by the coronavirus outbreak. The schemes were approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. The new schemes complement the previously approved schemes with measures which were introduced and made possible by the amendment to the Temporary Framework approved by the Commission on 3 April 2020. The two schemes, which will share and be financed with the €1.75 billion budget estimated for the previously approved schemes, will consist in: A first support scheme, which will be implemented and administered by the public Foundation KredEx. Under this scheme support will be granted in the form of public guarantees, loans and subsidised interest rates for loans. A second support scheme, which will be implemented and administered by the public Estonian Rural Development Foundation. It will focus on providing liquidity through public guarantees and loans to companies active in the agriculture, fishery and food processing sectors, as well as to companies in rural areas.

• on 21 April 2020, eight Estonian State aid schemes in the form of direct grants and payment advantages to provide liquidity to companies affected by the coronavirus outbreak. The Estonian support measures Estonia notified to the Commission under the Temporary Framework eight support schemes, with a total estimated budget of €75.5 million, to support companies affected by the coronavirus outbreak. Under the schemes, public support will be provided as follows: direct grants for: (i) small companies that seek to transform their products, services, processes and business model in order to support their viability; (ii) companies that invest in development projects to support their viability; companies in the tourism sector (iii) that seek to restructure their activities, to develop new products and/or services, or to change their business model as a result of the outbreak; and (iv) to mitigate coronavirus related damage; (v) direct grants to companies and organisations active in the culture and sports sectors affected by the coronavirus; and three measures related to the City of Tallinn: (vi) payment advantages to companies supplying products or services; (vii) a waiver of penalties to companies that failed to fulfil orders in due time; and (viii) reduced rent leases and usage fees to lessees of municipal property.

• on 31 March 2020, two Estonian State aid schemes to support the economy in the context of the coronavirus outbreak. The first scheme will be implemented and administered by the public Foundation KredEx, and the second one, implemented by the public Estonian Rural Development Foundation. Under both schemes, with a total estimated budget of €1.75 billion, the support will consist either in the provision of public guarantees on existing or new loans, or in the granting of loans at favorable terms. The aim of the schemes is to help businesses cover immediate working capital or investment needs that have been impaired by the effects of the coronavirus outbreak.