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.
Implementing the Three Seas priority projects will be a decisive game changer in the sustainable development of our region and of Europe as a whole. The consistent increase in their number reveals the growing level of our ambitions, stated President Rumen Radev, who opened the Sixth Three Seas Initiative Summit today in the National Palace of Culture in Sofia.
The Three Seas Summit and Business Forum starts today in Sofia, Bulgaria. The event will be held on 8th and 9th of July, 2021. The host of the event – President of the Republic of Bulgaria Rumen Radev will welcome in Sofia Heads of state and government as well as high-level representatives of the 12 participating 3SI countries.