Facts

PM: Estonia develops compensation mechanism providing for use of Russian funds for Ukraine's needs

Estonia has already completed the development of a compensation mechanism that provides for the use of Russian funds for the needs of Ukraine, Prime Minister Denys Shmyhal said during a joint press conference with Estonian Prime Minister Kaja Kallas.

"Estonia is today among the leaders in the volume of defense and humanitarian assistance provided to Ukraine per capita. To date, defense assistance has been provided in the amount of more than EUR 520 million, which is about 1.4% of the country's GDP," the Cabinet of Ministers press service said on Wednesday, citing Shmyhal.

"We appreciate that Estonia's support is becoming long-term. The Estonian government has developed the 'Ukraine Victory Strategy,' which provides for annual defense assistance to Ukraine in the amount of 0.25% of GDP over the next four years," Shmyhal said.

As Shmyhal said, during a meeting with the Prime Minister of Estonia, they discussed in detail the mechanism for compensating for the damage caused to Ukraine by Russia. "Without any doubt, losses must be compensated from frozen Russian assets. Estonia has already completed the development of a compensation mechanism that provides for the use of Russian funds for the needs of Ukraine. We look forward to its final approval," the head of the Ukrainian government said.

Separately, the Prime Minister of Ukraine thanked the Estonian side for the active practical support of President Zelenskyy's Peace Formula. Estonia recently agreed to become a co-signer of clause 5 of the Formula "Implementation of the UN Charter and restoration of territorial integrity."

Shmyhal said Estonia also plays a leading role in the Euro-Atlantic and European integration of Ukraine: "We expect to begin negotiations on our accession to the EU in the coming months. I am confident that Estonia is our reliable partner in this matter."

The head of the Ukrainian government also expressed hope that Estonia will support the decision to extend autonomous measures to liberalize trade. According to him, not only Ukrainian but also European companies benefit from duty-free trade, exporting tens of billions of dollars worth of goods and services to us. "Also, our strategic task is to continue the development of transport logistics. In particular, we consider it promising to involve Ukraine in the Rail Baltica logistics project. This will open up new opportunities for our exports and create another pillar for the Ukrainian economy," the Prime Minister said. Separately, Shmyhal noted the importance of imposing sanctions on agricultural products of Russian and Belarusian origin. He also said Estonia is becoming one of the key partners in the matter of reconstruction.

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