Estonia, Russia still exchanging pension payments
In the first quarter of 2024, Estonia sent more than €4 million to Russia to pay pensions. The two countries are still exchanging money under a cooperation agreement.
Four times a year, the Social Insurance Board (SKA) transfers money to the Russian Pension and Social Insurance Fund so that people over the border can receive their Estonian pension.
In the first quarter, the agency paid pensions to 5,000 people in Russia totaling more than €4.1 million.
"On the basis of these lists, Russia distributes money to people. These lists, which we exchange on the basis of a bilateral cooperation agreement, set out the people to whom pension payments are to be made, and the amounts to be paid each quarter. Exactly the same principle applies on this side too," explained Agne Kiviselg, head of the pension area of the Social Insurance Board.
During the same time period, the Russian fund sent over €700,000 to Estonia to be distributed to 5,000 pensioners.
Although SKA is still waiting for the second quarter payment, so far the cooperation agreement signed in 2011 is still working, Kiviselg confirmed.
"We can say that the agreement has been correctly executed by both parties at this point. People have been paid their money on time in both directions. We hope that this will also be the case for the second quarter of this year," she said.
Bank makes exceptions for transfers
The Social Insurance Board makes payments to Russia through SEB Bank. Under normal circumstances, the bank no longer allows payments to the country.
"Several major Russian banks have been cut off from the SWIFT system. International payments cannot be made through these banks. Nor can payments be made through banks under sanctions. Our decision is a risk-based decision. We saw that the risks associated with breaching the sanctions were sufficiently high that we had to suspend the provision of payment services to Russia," Monika Kallas-Anton, an SEB board member, explained.
While some banks still make transfers to Russia, SEB will only do so in the case of national interest or for humanitarian reasons.
"As an exceptional circumstance, for example, we have agreed to support pension payments," Kallas-Anton said.
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Editor: Helen Wright
