The European Union's Just Transition Fund (JTF) distributes support to both large-scale projects and smaller ventures, aiming to assist Ida-Viru County's economy, people and environment in managing the challenges posed by transitioning to a more sustainable economy.

The fund is allocating a total of €340 million in support. One of the recipients is Ishaya, a private limited company founded in 2013 by Tarmo Tamm, a member of the Riigikogu Economic Affairs Committee. Ishaya, which engages in wood sales and mediation, is receiving €5.924 million from the fund to invest in Ida-Viru County. This amount is expected to cover nearly half of the costs required to establish a wood processing facility.

Tamm told ERR that Ishaya is not building a traditional sawmill in Kohtla-Järve, but rather a wood processing complex that is science-intensive and adds high value, with a clear focus on exports.

"I firmly believe that the cornerstone of Estonia's economic success lies in such manufacturing industries. The state has also sent a clear signal about the need for jobs in Ida-Viru County, so I decided to invest," Tamm explained regarding his decision.

Initially, in order to qualify for support from the Just Transition Fund, companies needed to meet certain criteria regarding turnover and the number of employees. Under these conditions, Ishaya would not have been eligible for support, as the company's turnover last year was only a few hundred euros, and according to the business register, it currently has no employees.

However, in December of last year, the government decided to ease the fund's requirements due to a lack of applications, particularly from medium and smaller businesses. This change enabled Tamm's company to qualify for support. Tamm commented that, in his view, the decision to relax the conditions was sensible. He also noted that his plans would not have materialized without the modification, as he had not previously applied for support from the fund.

He further emphasized that the amendment was also reasonable for the development of Ida-Viru County, pointing out that there is now very little time left for projects to be realized.

"Perhaps even more focus could have been placed on jobs in export-capable industries – industries that meet modern environmental standards. Any further delays could have resulted in the funds intended for Ida-Viru County going unused in a meaningful way," Tamm argued.

Ishaya's annual reports indicate that the company was last actively operating in 2021, with a turnover of nearly €112,000 and a net profit of over €33,000. In the following years, its business activity slowed: in 2022, turnover fell below €10,000 and last year amounted to just €218, a result of the end of wood exports from Russia to Europe.

This year, Ishaya's activity has picked up again, with the business register showing a third-quarter turnover of nearly €113,000. Tamm attributed the growth to the decision to build the production facility.

"Products need to be introduced to clients before the factory is completed. Today's feedback is encouraging," he said.

According to Tamm, the construction of the wood processing complex began as soon as the Enterprise and Innovation Foundation (EISA) issued a positive decision.

"At the moment, we are focused on planning, which is an important part. Hopefully, construction will begin in the spring," Tamm added.

The factory is expected to provide employment for 25 people.

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