Estonia becomes the third country to join the Three Seas Initiative Investment Fund
According to Foreign Minister Urmas Reinsalu, joining the fund is an important step in the political cooperation with the United States and the states of Central and Eastern Europe. Reinsalu said the fund would also provide a strong impetus for overcoming strategic shortcomings in infrastructure investments, particularly in domains such as energy security, digital networks and transport links.
“Joining the fund will provide our companies with additional opportunities for raising capital in the Baltic Sea, Black Sea and Adriatic Sea region. Estonia could have potential projects in all the focus sectors of the fund,” Finance Minister Martin Helme said.
“Considering the climate neutrality target and the concomitant needs in the energy sector, the modernisation of transport infrastructure, including by PPP, and plans to support the development of digital infrastructure and the export of digital solutions, there is certainly a need for raising capital,” he added.
Estonia has begun preparations for the fifth summit and third business forum of the Three Seas Initiative, which will be held in Tallinn on 19 and 20 October 2020. “Organising the summit and business forum in Estonia is an excellent opportunity to enhance cooperation with the Three Seas countries. The COVID-19 pandemic and its paralysing influence on the functioning of societies, the availability of essential products, medical equipment and personal protective equipment and the economy in general has further increased the importance of strategic connections,” Foreign Minister Reinsalu said.
The Three Seas Initiative Investment Fund has already been founded, however, substantive investment activities are only being launched. Poland and Romania are the first to have contributed to the fund with a total of more than €500 million. The United States has indicated it may invest around $1 billion to the region, either through or alongside the fund.
Estonia is contributing €20 million, which will be made in proportion to other partners according to implemented investments. By participating in the fund, Estonia will get a chance to name its representative on the management board of the fund. The overall objective of the fund is to raise €5 billion. To this end, there are plans to include countries that have not yet joined as well as public investors.
While countries are participating as investors, the fund makes decisions independently and according to economic considerations. The fund is financing profitable projects only and no non-refundable grants are issued.
Estonia’s shareholding is managed by the Ministry of Finance and the government authorised the Finance Minister to take actions needed for the acquisition and implementation of the holding. Estonia’s contributions are managed through the instruments allocated from the state budget for financial transactions in the domain of the Foreign Ministry.
investment interest in the transport, energy and digital connectivity
projects within the Three Seas Initiative during a videoconference call
with the Managing Director of the IMF Kristalina Georgieva. The Three
Seas Initiative requires the development of the investment fund and the
creation of business conditions, as well as the expert support of
international financial institutions to realise its potential, the President
On April 14, 2021, the Bulgarian Deputy Prime Minister and Minister of Foreign Affairs Ekaterina Zaharieva met with the newly appointed Ambassador of Romania to Bulgaria Mrs. Brandusa Predescu and discussed with her the cooperation between the two countries within the framework of the Three Seas Initiative. The two interlocutors agreed that Bulgaria and Romania should work actively together to attract foreign investors to the region.