According to EAS and Kredex board member Sigrid Harjo, the aim is to support the diversification of the economy in Ida-Viru County as well as improve the competitiveness of small and medium-sized enterprises. "With the support of the Just Transition Fund, it will be possible to invest in product and process development, as well as buy machinery and equipment and expand production," Harjo said.

"Not all companies need to conquer the world. Some want to be able to take on more orders with a team of ten and halve their turnover. Others just want to buy a new workbench or some new software. These are all very understandable development needs, which are familiar to many small businesses. It is with precisely these needs in mind that we have envisaged a new SME (Small and medium-sized enterprise) investment grant from the Just Transition Fund," explained Ivan Sergejev, Just Transition Fund coordinator at the Estonian Ministry of Finance.

This will be the second business support measure to fall under the Just Transition Fund. In the summer of 2022, a large-scale investment measure is to be implemented, which will support job-creating investments in Ida-Viru County.

 The measure has a total budget of €153 million with individual grants ranging from €500,000 to €19 million.

To date, two decisions have been taken under the first measure. The total volume of investments from companies is around €106 million, €21.4 million of which will be subsidized. There are also two funding applications pending for a total of €14 million, of which around €4.2 million would be covered by grants.

 Three further project plans have been approved, totaling €33 million, with a potential grant of around €15 million, should it be applied for.

Another three planned projects costing a total of €190 million, for which a grant of around €20 million has been requested, are at the preparation phase.

The minimum amount of SME investment aid per project is  €30,000, while the maximum is €500,000. The share of the total costs for micro and small enterprises and will be 45 percent. For medium-sized enterprises this will be 35 percent. All activities planned as part of the project must be completed by August 31, 2026 at the latest.

On July 17, a call will be launched for funding applications to support research and development projects of companies in Ida-Viru County as well as to help implement high-tech pilot projects.

The total size of the Just Transition Fund is €354 million.

--

Follow ERR News on Facebook and Twitter and never miss an update!