Estonian Investment Relations with the Eastern Partnership Countries

17. December 2020

By Raul Mälk, Senior Research Fellow, ECEAP

The most significant amount of FDI to the Partnership countries goes from the EU to Ukraine. Five other Partnership countries have received a relatively modest amount of EU FDI. Investment activity between EU and the six Eastern Partnership countries has been influenced during the past decade by the global economic crisis, political tensions in the region, the business climate and the problems with the rule of law in six countries.

The flow of investments from Estonia to the EaP countries is not significant, except for Ukraine, and to some extent Belarus and Georgia. Estonian FDI in Moldova, Armenia and Azerbaijan remain minimal. As of the end of September 2020, Estonian FDI to Ukraine were 170.2 million euros and to Belarus 79.2 million euros.

According to the available information, Estonian FDI in Partnership countries is significant in retail and wholesale trade, some areas of industry, real estate development and also increasingly in the IT sector.

Total Eastern partnership countries’ FDI in EU countries is small. The most significant investor in Estonia is Ukraine, at the end of September 2020 Ukrainian FDI in Estonia were 299.6 million euros.

This analytical overview looks at Estonian FDI in Eastern Partnership countries in general and available company-level data; and more general information and some company-level information about FDI from Partnership countries in Estonia.

To read the full paper by ECEAP’s Senior Research Fellow Mr Raul Mälk, please see here: Estonian Investment Relations with the Eastern Partnership Countries