Goverment will start supporting oil industry due to falling prices

VKG plant in Ida-Viru County. Source: VKG

The government is looking into how to support the shale oil industries in Ida-Viru County which have been badly hit by falling oil prices. Minister of Economic Affairs and Infrastructure Taavi Aas (Center) will lead a working group tasked with developing measures.

Prime Minister Jüri Ratas said on Thursday: "The price of oil has been negative in some places and this is a serious challenge, which primarily concerns Ida-Viru County. We need an economic measures packages in Ida-Viru County. The government agreed to form a working group, which will be led by Taavi Aas."

The Minister of Finance Martin Helme (EKRE) added although the price of oil and the price of shale oil are not directly related, the price of oil dictates both the fluctuation of the price of gas and the price of shale oil.

"This will have a huge impact on Estonian exports and jobs, so we have to deal with it separately. This is an extremely volatile situation at the moment, but all predictions say that the price in the oil market will stabilize and reach a level that makes oil production profitable for us again. to make sure that this large and profitable industry survives the difficult times, "said the Minister of Finance.

He clarified different state fees and charges could be considered as support measures, including the use of specially labeled diesel, as well as different environmental charges, which could be reduced.

"These were specific things on the menu that we discussed in the cabinet for the first time today, but which we will look closely at next week," Helme said.

Ratas said in the Cabinet on Thursday Aas presented a very specific vision of the measures which could be implemented, but no final decisions have been made yet. It is hoped to reach an agreement in the coming weeks.


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Editor: Helen Wright

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