G/SCM/N/253/EU/Add.7  
 
29 July 2013  
(13-4035)  Page: 1/29  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF 
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to subsidy programmes 
of Estonia . 
_______________ 
 G/SCM/N/253/EU/Add.7 
 
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  ESTONIA  
 
TABLE OF CONTENTS  
 
1   AID FOR RESEARCH  AND DEVELO PMENT ..................................................................... 3  
1.1   R & D Financing Programme ........................................................................................ 3  
1.2   Risk Capital Scheme .................................................................................................. 4  
2   OTHER HORI ZONTAL AID ............................................................................................ 5  
2.1   Support for the Participation of Entrepreneurs in Trade Fairs ............................................ 5  
2.2   Training Progra mmes for Comp anies ............................................................................ 6  
2.3   Guarantee Sche me for Comp anies ............................................................................... 7  
2.4   Start-Up Programme .................................................................................................. 8  
2.5   Employ ment Aid ........................................................................................................ 9  
2.6   Loan Scheme  for Comp anies ...................................................................................... 10 
2.7   Aid for Broadband Infrastructure ................................................................................. 11 
2.8   Consulta ncy Programme ............................................................................................ 12 
3   REGION AL AI D .......................................................................................................... 13  
3.1   Programme  of Tourism .............................................................................................. 13 
3.2   Programme of Investment Support ............................................................................. 14 
3.3   Investment Support for Science and Technology Parks ................................................... 15 
4   ENVIRONM ENTAL AID ............................................................................................... 16  
4.1   Substitution of the Pollutio n Charge ............................................................................ 16 
4.2   Environmental Programme ......................................................................................... 17 
4.3   Excise Duty Ex emption for Biofuel ............................................................................... 18 
5   DOMESTIC SUPPOR T IN AGRICULTURE ..................................................................... 19  
5.1   Genera l Services ...................................................................................................... 19 
5.2   Public Stockholding Fo r Food Security  Purposes ............................................................ 20 
5.3   Domestic food aid ..................................................................................................... 21 
5.4   Decoupled income support ......................................................................................... 22 
5.5   Government financial participation in income insurance and income safety- net 
programmes ................................................................................................................... 23 
5.6   Payment for Relief from Natural Disast ers .................................................................... 24 
5.7   Structural Adjustment Assistance  Provided Through Investment Aids ............................... 24 
5.8   Payment Under En vironmental Programmes ................................................................. 25 
5.9   Payment Under Regional  Assistance Programmes .......................................................... 26 
5.10   Fuel Tax Exemption ................................................................................................. 27 
5.11   Short-Term Loan Guarantees .................................................................................... 28 
5.12   Complementary national dire ct payments (CND P - coupled) .......................................... 29 
 G/SCM/N/253/EU/Add.7 
 
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  1  AID FOR RESEARCH AND DEVELOPMENT 
1.1  R & D Financing Programme 1. Period covered by the notification 
 
2011, 2012.  
 2. Policy objective and/or purpose of the subsidy 
 The programme aims at increasing the competitiveness of companies and research and development institutions through the support of R&D projects leading to new technologies, products, processes and services.  
 
3. Background and authority for the subsidy 
 
Enterprise Estonia (Foundation)  
 Archimedes Foundation 
 
Agricultural Registers and Information Board (ARIB)  4. Legislation under which subsidy is granted 
 2004-2006 Structural Assistance Act; Regulation  of the Minister of Economic Affairs and 
Communications No 51 of 9 May 2005. 
 
Regulation of the Minister of Education No 17 of 19 April 2011 Regulation of the Minister of 
Education No 71 of 3 December 2010.  
 
Regulation of the Minister of Education No 17 of 31 March 2010.   Regulation of the Minister of Agriculture No 29 of 16 March 2010.  
 
5. Form of the subsidy 
 
Grant.  
 6. To whom and how the subsidy is provided 
 In case of Enterprise Estonia:  The subsidies are provided to SMEs, large companies and R&D institutions, which undertake 
industrial research, experimental development projec ts, and feasibility studies. Aid is also granted 
to SMEs for the costs associated with obtaining and validating patents and other industrial property rights.  
 
Generally the industrial research projects can be supported up to 60% of eligible costs, which may 
increase up to 75% in special cases (SMEs, cro ss-border cooperation, wide dissemination of the 
results etc).  
 In case of industrial research carried out by public R&D institutions, public support can go up to 75% of the project costs.  
 
Experimental development projects can in general be supported up to 35%, which may reach up to 50% in certain cases.  
 
Technical feasibility studies preparatory to industrial research activities can be supported up to 75% and technical feasibility studies preparatory to experimental development activities up to 
50% of the studies' costs. 
 Costs for industrial property rights can be supported up to 50%. G/SCM/N/253/EU/Add.7 
 
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  Maximum amount of support in case of feasibility studies is 0.02 Mio EUR, in case of industrial 
research project 1.9 Mio EUR.   In case of support from foundation Archimedes the subsidies are provided to SMEs, large 
companies and R&D institutions, which undertake fundamental research, industrial research and 
experimental development projects.  
In case of fundamental research projects can be supported up to 95% of eligible costs. 
In case of industrial research projects can be supported up to 60% of eligible costs. Maximum amount of support is 1.3 Mio EUR.   
In case of support from ARIB the subsidies ar e provided for businesses who produce or process 
TFEU Annex 1 products or forest products and which undertake industrial research and experimental development projects.  
 
Generally the industrial research projects can be supported up to 50% of eligible costs, which may 
increase up to 80% in special cases (SMEs, cro ss-border cooperation, wide dissemination of the 
results etc).  
 Experimental development projects can in general be supported up to 25%, which may reach up to 60% in certain cases.   
 
Maximum amount of support is 320 000 EUR.   
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy:  
 Fiscal year 2011 – 0.107 Mio EUR  
Fiscal year 2012 – 0.105 Mio EUR   8. Duration of a subsidy and/or any other time limits attached to it 
 The programme of Enterprise Estonia was valid till 31 December 2006, payments could be made later. 
 
The programmes of Archimedes Foundation are valid till 31 December 2013. The programme of ARIB is valid till 31 December 2013.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  
 
1.2  Risk Capital Scheme  
1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
The objectives of the Development Fund's investment actions are to give a positive impetus to the development of Estonia's venture capital market.  
 
3. Background and authority for the subsidy 
 
Estonian Development Fund (EDF). 
 4. Legislation under which subsidy is granted 
 Estonian Development Fund Act, Estonian Development Fund Investment Strategy.  
 G/SCM/N/253/EU/Add.7 
 
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  Form of the subsidy 
 
Investments in equity capital.   
6. To whom and how the subsidy is provided 
 
EDF invests in small and medium-sized enterprises, which are not be listed on the official list of a 
stock exchange or on an unlisted securities market of a stock exchange. The aid is restricted to 
initial investments into SMEs in their seed and start-up stage.  EDF provides equity investments or quasi-equity. The total maximum size of investment tranche 
per target SME shall not exceed 1.5 Mio EUR over each period of 12 months. The tranche includes 
both the investments of EDF and the private co-inv estments. At least 30% of the investment will 
be made by independent private investors, EDF investments will not exceed 70% of the total 
investment. 
 Participation of the EDF, acquired as a result of an investment, must not be less than 10% and 
more than 49% of the share capital of the investee company. 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
Fiscal year 2011 – 0.139 Mio EUR 
Fiscal year 2012 – 0.071 Mio EUR   
8. Duration of a subsidy and/or any other time limits attached to it 
  
The programme is valid till 31 December 2013.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  
 
2  OTHER HORIZONTAL AID 
2.1  Support for the Participation of Entrepreneurs in Trade Fairs 
1. Period covered by the notification 
 
2011, 2012.  
 
2. Policy objective and/or purpose of the subsidy 
 To organise and support the participation of entrepreneurs in trade fairs.  
 
3. Background and authority for the subsidy 
 
For City of Tallinn – City Enterprise Department 
 For City of Narva - Department for Development and Economy 
  
4. Legislation under which subsidy is granted 
  Regulation of Tallinn City Council No 50 of 13 December 2007; Regulation of Tallinn City Council 
No 3 of 13 January 2010.  
 Regulation of Narva City Council No 10 of 14 February 2008.  
 
5. Form of the subsidy 
 
 Grant.  
 G/SCM/N/253/EU/Add.7 
 
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  6. To whom and how the subsidy is provided 
 
Subsidy is paid to the participating company (or sole proprietor) as a payment for participation costs, stand rental and other similar expenses. The subsidy cannot cover more than 50% of the 
expenses.  
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 0.074 Mio EUR  Fiscal year 2012 – 0.083 Mio EUR 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
No time limits are attached to the programme. 
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   2.2  Training Programmes for Companies 
1. Period covered by the notification 
 
2011, 2012.  
 
2. Policy objective and/or purpose of the subsidy 
 
The aim of the training support is to promote the in-service training and retraining of 
entrepreneurs and the persons working in the companies for maintaining or increasing the competitiveness of employees at the labour market.  
3. Background and authority for the subsidy 
 
For City of Tallinn – City Enterprise Department. 
 
Foundation Innove   
4. Legislation under which subsidy is granted 
 
Regulation of Tallinn City Council No 46 of 11 December 2008     
2007-2013 Structural Assistance Act; Regulation  of Minister of Social Affairs No 69 of 
5 November 2008   
5. Form of the subsidy 
 
Grant.  
 
6. To whom and how the subsidy is provided 
 In the frames of Tallinn City Enterprise Department programme the subsidy is provided to 
companies to cover up to 50% of eligible costs. 
 In the frames of Foundation Innove programme the support is provided for companies training 
disadvantaged persons. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 0.019 Mio EUR Fiscal year 2012 – 0.034  Mio EUR G/SCM/N/253/EU/Add.7 
 
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8. Duration of a subsidy and/or any other time limits attached to it 
 No time limits are attached to the Tallinn City  Enterprise Department programme. The programme 
of Foundation Innove is valid till 31 December 2013.  
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  
 2.3  Guarantee Scheme for Companies 
1. Period covered by the notification 
 
2011, 2012.  
 
2. Policy objective and/or purpose of the subsidy 
 
To promote mainly small and medium sized enterp rises by supporting their access to capital by 
securing their bank loans.   3. Background and authority for the subsidy 
 Foundation KredEx  
Rural Development Foundation 
  4. Legislation under which subsidy is granted 
 The Articles of Association of Foundation KredEx; Support of Enterprise and State Loan Guarantees 
Act; Decree of the Minister of Economic A ffairs and Communications No 218 of 13 July 2009 , 
Conditions for guaranteeing SMEs loans approved by the Decree of the Head of Foundation No 62-
üld of 31.12.2008 ; Conditions for guaranteeing SMEs working loans, bank guarantees and start-up 
loans approved by the Decree of the Head  of Foundation No 25-üld of 17 March 2011 ; Decree of 
the Minister of Economic Affairs and Communica tions No 15 of 12 January 2010; Decree of the 
Minister of Economic Affairs and Communications No 11-0046 of 2 February 2011  
 Rural Development and Agricultural Market Regulation Act; Decision of Supervisory Board of Rural 
Development Foundation of 20 November 2008; Decision of Supervisory Board of Rural 
Development Foundation of 12 December 2007; Decision of Supervisory Board of Rural Development Foundation of 5 November 2009 Decisi on of Supervisory Board of Rural Development 
Foundation of 13 October 2011 
 
5. Form of the subsidy 
 
Loan and leasing guarantees 
 6. To whom and how the subsidy is provided 
 The guarantees of Foundation KredEx are meant for companies whose value of the collateral property or self-financing is not sufficient for getting a bank loan or who do not have a long history of operation. Guarantees are mainly provided to  small and medium sized companies (SMEs), loans 
are secured up to 75% of the loan amount.  
 The loan recipient takes the primary responsibility for the loan, guaranteeing the loan with his 
property and/or that of third persons, and/or a pers onal surety. In case of surety, KredEx will take 
second responsibility. That means that if a business plan fails and the businessman will not be able to manage his/her loan, the loan guarantee property  shall be disposed at first. The guarantee of 
KredEx shall be realised, if the income obtained from the realisation of guarantee property is not 
sufficient to fulfil the claims of the bank. G/SCM/N/253/EU/Add.7 
 
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  The maximum guarantee amount for small and medium-sized enterprises is Mio EUR and the 
maximum guarantee amount for big enterprises is  1.5 Mio EUR. The guarantee amount decreases 
proportionally with the decreasing of the loan/leasing amount.   
The contract fee is 1% of the guarantee amount. Guarantee amount for loan and leasing starts 
from 1.7% of the guarantee balance per year and for bank guarantees from 0.4% of the 
guarantee balance per year.  
 
Rural Development Foundation issues a guarantee for the debt obligation of an entrepreneur (loan, 
leasing, etc). A guarantee can be received by a SME. The entrepreneur shall not have tax arrears 
or any financial difficulties and is able to perform the obligations arising from the loan agreement. 
 
The extent of the guarantee necessary for a particular loan is decided by the bank which also submits a corresponding application to the Rural Development Foundation. The guarantee does not 
release the entrepreneur from proprietary liability - the entrepreneur holds primary liability for the 
loan obligation which must be also secured with one's own property or a personal surety must be provided to the bank. If for any reasons the bu siness of the entrepreneur fails and the pledged 
property of the borrower is not sufficient for deleting the loan residue, the Rural Development 
Foundation will pay the bank the agreed amount of the guarantee.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – guarantee amount 2.549 ( aid element 0.108 ) Mio EUR  
Fiscal year 2012 – guarantee amount 32.431 ( aid element 1.190 ) Mio EUR  
 8. Duration of a subsidy and/or any other time limits attached to it 
 No time limits are attached to the programmes.   9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   
2.4  Start-Up Programme 
1. Period covered by the notification 
 
2011, 2012.  
 2. Policy objective and/or purpose of the subsidy 
 
To provide individuals with the incentive to start business and create new jobs. Likewise, the 
programme intends to increase the su rvival ratio of new enterprises.  
 
3. Background and authority for the subsidy 
 
Enterprise Estonia (Foundation).  
 
Estonian Unemployment Insurance Fund (Töötukassa)  For City of Tallinn – City Enterprise Department.  
 
For City of Narva - Department for Development and Economy  
4. Legislation under which subsidy is granted 
 
Conditions of Programme for Start-up and Growth  Support approved by the Management Board of 
Enterprise Estonia on 1 August 2011; Conditions  of Programme for Start-up and Growth Support 
approved by the Management Board of Enterprise Estonia on 17 March 2011.  G/SCM/N/253/EU/Add.7 
 
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  Labour Market Services and Benefits Act; Go vernment Regulation No 170 of 22 December 2011 
§ 22   Regulation of Tallinn City Council No 38 of 1 December 2011; Regulation of Tallinn City Council 
No 51 of 13 December 2007   
 Regulation of Narva City Council No 25 of 28 June 2007.  
 
5. Form of the subsidy 
 Grant.  
 
6. To whom and how the subsidy is provided 
 
An applicant may be a sole proprietor or underta king being founded in Estonia or an undertaking 
that was entered into the Commercial Registry no longer than 36 months before the date of registration of the application. In case of City of Tallinn the applicant has to be located in Tallinn 
and in case of City of Narva the applicant has to be located in Narva.  
 The grant amount will not exceed 32 000 EUR and 80% of eligible costs in case of Enterprise of 
Estonia, 20 000 EUR and 50% in case of City of Narv a or 25% of the eligible costs in case of City 
of Narva. 
 For Estonian Unemployment Insurance Fund business start up subsidy is for registered 
unemployed persons who want to start business activities. The amount of the subsidy is up to 
4474 EUR.   
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
Fiscal year 2011 – 0.367 Mio EUR  
Fiscal year 2012 – 7.097 Mio EUR  
 8. Duration of a subsidy and/or any other time limits attached to it 
 No time limits are attached to the programme.    
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.   
2.5  Employment Aid 
1. Period covered by the notification 
 
2011, 2012.  
 2. Policy objective and/or purpose of the subsidy 
 The aim of the programme is the integration of unemployed people and people belonging to risk groups to the labour market, to increase the effi ciency and quality of labour market services; to 
stimulate job-creation.  
 
3. Background and authority for the subsidy 
 
Estonian Unemployment Insurance Fund (Töötukassa) 
 Tallinn City Enterprise Department.  
 
Foundation Innove  For City of Narva - Department for Development and Economy  G/SCM/N/253/EU/Add.7 
 
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4. Legislation under which subsidy is granted 
 Labour Market Services and Benefits Act; Government Regulation No 170 of 22 December 2011  
 
Regulation of Tallinn City Council No 16 of 14 May 2009   
Regulation of Minister of Social Affairs No 69 of 5 November 2008 
 Regulation of Narva City Council No 9 of 11 March 2010   
5. Form of the subsidy 
 
Grant.  
 
6. To whom and how the subsidy is provided 
 
Subsidies are provided to companies and sole pr oprietors for recruitment of disadvantaged and 
disabled workers, to cover additional costs of em ployment of disabled workers (adapting premises 
or equipment) and for creating social jobs for registered unemployed persons.   
Wage subsidy is a benefit payable to employers fo r employing unemployed persons, who belong in 
risk groups (e.g. long-term unemployed, ex-prisoners). The size of the subsidy is 50% of the wage or salary of the employee but not more than  the minimum monthly wage established by the 
Government. The subsidy is paid for 6 months.  
 Subsidy for the adaptation of premises and equi pment is provided in case of recruitment of 
disadvantaged workers. The size of the subsidy is 50% of the cost of the adjustment but not in an 
amount exceeding the upper limit established for support.   For entrepreneurs in the City of Tallinn 2/3 of the wage cost is covered.  
 
For entrepreneurs in the City of Narva the support is based on percentage of the additional income 
tax of the project. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 0.605 Mio EUR  Fiscal year 2012 – 0.487 Mio EUR   
8. Duration of a subsidy and/or any other time limits attached to it 
 
No time limits are attached to the programme.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
 2.6  Loan Scheme for Companies 
1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
The loan is aimed at financing of activities with a purpose to increase the competitive strength of a 
company by development or expansion. 
 G/SCM/N/253/EU/Add.7 
 
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  3. Background and authority for the subsidy 
 
 Foundation KredEx  
4. Legislation under which subsidy is granted 
 
2007-2013 Structural Assistance Act¸ The Articles of Association of Foundation KredEx; Support of 
Enterprise and State Loan Guarantees Act; De cree of the Minister of Economic Affairs and 
Communication No 214 of 6 July 2009; Decree of the Minister of Economic Affairs and Communication No 16 of 12 January 2010   
5. Form of the subsidy 
 
Loans.  
 
6. To whom and how the subsidy is provided 
 
Subordinated loans are meant for sustainable companies that are oriented on growth and that the 
banks are not ready to finance due to low rate of self-financing, risky sector or insufficient collaterals. Similar to the owner of the enterprise, KredEx will provide capital for the entrepreneur's use. Subordinated loan will condit ionally enhance the enterprise's equity capital 
before the eyes of the bank which, in turn, enables the enterprise to borrow additional amounts 
and develop faster. In addition to allowing mostly unobtainable financing, the KredEx non-interference in the management of the enterprise ( unlike risk capital funds) will be positive for the 
enterprise. 
 Amount of the loan is 64 000 - 1 100 000 EUR but not more than the enterprise's equity capital at 
the time of issue of loan. Loan period is 3 to 5 years but not more than 10 years. Agreement fee is 
1% of the loan amount.  
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – loan amount 4.513 Mio EUR ( aid element 0.309)   
Fiscal year 2012 – loan amount 1.103 Mio EUR ( aid element 0.033 )  
 8. Duration of a subsidy and/or any other time limits attached to it 
 The program is valid till 31 August 2015.   9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   
2.7  Aid for Broadband Infrastructure 
1. Period covered by the notification 
 
2011, 2012.  
 2. Policy objective and/or purpose of the subsidy 
 
The grant is aimed at establishment of a sustainable infrastructure permitting Estonia-wide 
broadband internet connection.  
3. Background and authority for the subsidy 
 
Enterprise Estonia (Foundation) 
 
Agricultural Registers and Information Board (ARIB)  Estonian Information System's Authority G/SCM/N/253/EU/Add.7 
 
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4. Legislation under which subsidy is granted 
 Regulation of Minister for Regional Affairs No 3 of 10 February 2011. 
 
Regulation of Minister of Agriculture No 21 of 3 March 2011.  
Regulation of Minister of Economic Affa irs and Communications No 59 of 11 May 2009. 
 5. Form of the subsidy 
 
Grant.  
 6. To whom and how the subsidy is provided 
 Support is granted for non-profit organisations or local authorities (network owners) only for the creation of passive infrastructure.  
 
The cost for construction the infrastructure may be supported up to 85% with maximum amount of aid 640 000 EUR on the basis of the Regulation of Mi nister for Regional Affairs; up to 90% with 
maximum amount of aid 500 000 EUR on the basis of the Regulation of Minister of Agriculture and 
up to 100% with maximum amount of aid 520 000 EU R on the basis of the Regulation of Minister 
of Economic Affairs and Communications.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 0.063 Mio EUR  
Fiscal year 2012 – 0.573 Mio EUR   8. Duration of a subsidy and/or any other time limits attached to it 
 The program is valid till 31 December 2011.   
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
 
2.8  Consultancy Programme 
1. Period covered by the notification 
 
2011, 2012.  
 2. Policy objective and/or purpose of the subsidy 
 To enable to purchase consultations from professional consultants or to prepare applications.   
3. Background and authority for the subsidy 
 
Estonian Unemployment Insurance Fund (Töötukassa)  
Estonian Research Council 
 Agricultural Registers and Information Board (ARIB) 
 
4. Legislation under which subsidy is granted 
 
Labour Market Services and Benefits Act; Government Regulation No 170 of 22 December 2011  
 Instructions approved by the Decision of the Management Board of Estonian Research Council of 13 August 2012  G/SCM/N/253/EU/Add.7 
 
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Regulation of the Minister of Agriculture No 20 of 12 March 2008 ( X144/08, SME consultancy) 
 5. Form of the subsidy 
 Grant.   
6. To whom and how the subsidy is provided 
 
In case of Estonian Unemployment Insurance Fund the subsidy is provided for individual 
consultancy or consultancy in mentor club for persons who have got support for starting business. 
The maximum amount for consultancy is 150 EUR. 
 In case of support from Estonian Research Council maximum grant amount is 3835 EUR. 
 
In case of ARIB the support may cover the costs of market research etc.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 
Fiscal year 2011 – 0.003 Mio EUR  
Fiscal year 2012 – 0.135 Mio EUR  
 8. Duration of a subsidy and/or any other time limits attached to it 
 The programme is valid till 31 December 2013.   
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.   
3  REGIONAL AID  
3.1  Programme of Tourism  1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
To diversify the choice of Estonian tourism products and services, invest in local infrastructure (in case of small islands programme and small ports programme)  
 
3. Background and authority for the subsidy 
 
Enterprise Estonia (Foundation).  
 4. Legislation under which subsidy is granted 
 Procedure of Enterprise Estonia for supporting small islands approved by the Management Board of Enterprise Estonia on 2 June 2011   
Procedure of Enterprise Estonia for supporting small ports approved by the Management Board of 
Enterprise Estonia on 2 June 2011   
5. Form of the subsidy 
 
Grant.  
 G/SCM/N/253/EU/Add.7 
 
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  6. To whom and how the subsidy is provided 
 
In case of small islands support program  the applicants can inter alia  be companies. The maximum 
amount of aid can be 130 000 EUR per project and up to 85% of the eligible costs. 
 
In case of small ports support program  the applicants can inter alia  be companies. Grants can 
cover up to 50% of eligible costs, maxi mum amount of support is ca 200 000 EUR. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
Fiscal year 2011 – 0.274 Mio EUR  
Fiscal year 2012 – 0.003 Mio EUR   
8. Duration of a subsidy and/or any other time limits attached to it 
 
No time limits are attached to the programmes.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  
 
3.2  Programme of Investment Support  
1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
To create non-agricultural jobs and revive the life in rural and other areas through the investment support of the diversification of economic activities in these areas.  
 
3. Background and authority for the subsidy 
 
Enterprise Estonia 
 Agricultural Registers and Information Board (ARIB) 
 
For City of Narva - Department for Development and Economy   4. Legislation under which subsidy is granted 
 Regulation of Minister for Regional Affairs No  185 of 11 May 2004; Decree of the Minister of 
Regional Affairs No 1-4/234 of 12 December 2011. 
 
Estonian Rural Development Plan; Regulation of the Minister of Agriculture No 122 of 10 October 2007, Regulation of the Minister of Agri culture No 20 of 12 March 2008, Regulation of 
the Minister of Agriculture No 59 of 12 June 2008, Regulation of the Minister of Agriculture No 75 
of 21 September 2012  Budget of City of Narva 2011 and 2012  
 
5. Form of the subsidy 
 
Grant.  
 6. To whom and how the subsidy is provided 
 
In case of service centers support program  the applicants can inter alia  be sole proprietors and 
companies. Maximum amount of support is 20 000 EUR. 
 G/SCM/N/253/EU/Add.7 
 
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  In case of ARIB program the subsidy is provided to the companies diversifying or expanding 
activities, to the agricultural producers who start non-agricultural activities in rural areas or other companies (or activity groups whose members are companies) active in rural areas or small towns. Subsidy is provided for investments related to the promotion of tourism and handicrafts, 
provision of services for the economy and inhabitants of rural areas (small towns) and production 
of non-agricultural products etc. Up to 50% of the eligible costs may be covered. In case of Agricultural Registers and Information Board program (Leader) up to 100% of eligible costs can be 
covered. 
 Ad hoc support is granted by the Department for Development and Economy of City of Narva.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 Fiscal year 2011 – 3.382 Mio EUR  
Fiscal year 2012 – 3.894 Mio EUR  
8. Duration of a subsidy and/or any other time limits attached to it 
 
The programme of Agricultural Registers and Information Board is valid till 31 December 2013. No time limits are attached to other programmes.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
 3.3  Investment Support for Science and Technology Parks  
1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
To improve the business environment of techno logy-intensive enterprises by supporting the 
establishment of necessary infrastructure in science and technology parks.  
 3. Background and authority for the subsidy 
 Enterprise Estonia (Foundation).   4. Legislation under which subsidy is granted 
 The Regulation of the Minister of Economic A ffairs and Communications No 10 of 1 March 2007.  
 
5. Form of the subsidy 
 
Grant.  
 
6. To whom and how the subsidy is provided 
 The subsidy is provided to legal persons in private law who promote knowledge and technology 
transfer by providing high-level infrastructure an d support services and who have at least 3 year 
experience in this field.   
The maximum amount per application is ca 2 Mio EUR, up to 70% of eligible costs may be 
covered. The eligible costs include costs of preparation of land for building, costs of planning and construction of buildings, costs of equipment etc. 
 G/SCM/N/253/EU/Add.7 
 
- 16 - 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
Fiscal year 2011 – 0.172 Mio EUR  
Fiscal year 2012 – 0.0 Mio EUR  
 8. Duration of a subsidy and/or any other time limits attached to it 
 The programme was valid (applications could be submitted) till 30 April 2009, payments can be made later.   
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
 
4  ENVIRONMENTAL AID 
4.1  Substitution of the Pollution Charge 
1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
The programme aims at decreasing pollution by encouraging voluntary environmental protection 
investments.  
 3. Background and authority for the subsidy 
 Ministry of Environment.   4. Legislation under which subsidy is granted 
 Environmental Charges Act, Articles 48-55 ( XR 53/07 ).  
 
5. Form of the subsidy 
 
Pollution charge substitution with investments in environmental protection.  
 
6. To whom and how the subsidy is provided 
 According to the Environmental Charges Act companies have to pay a charge for the release of 
pollutants or waste into the environment. According to Article 48 of the Environmental Charges 
Act, the obligation to pay the pollution charge can be substituted by investments if:   
- the polluter implements measures, which ensure the reduction of pollutants over the 
course of 3 years by not less than 15% in comparison with the last accounting period prior to the implementation of such measures;  
 
- in case of hazardous waste, the eliminator  of such waste implements over the course 
of 3 years measures, which allow the former hazardous waste to be treated as non-hazardous waste;  
 
- in case of hazardous waste, which technically cannot be recycled, the eliminator of the 
waste builds a waste disposal site for such waste over the course of 3 years.  
 
The extent to which the pollution charge is substituted shall not exceed the cost of the 
environmental protection measures.  
 G/SCM/N/253/EU/Add.7 
 
- 17 - 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
 Fiscal year 2011 – 0.198 Mio EUR 
 Fiscal year 2012 – 0.126 Mio EUR  
 8. Duration of a subsidy and/or any other time limits attached to it 
 Duration of support for applicant is up to 3 years, the program is valid till 31 December 2013.   9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   
4.2  Environmental Programme 
1. Period covered by the notification 
 
2011, 2012.  
 2. Policy objective and/or purpose of the subsidy 
 
To preserve the stability of environment.  
 3. Background and authority for the subsidy 
 Environmental Investment Centre (Foundation)  
Private Forest Centre Foundation 
 Foundation KredEx  
4. Legislation under which subsidy is granted 
 
2007-2013 Structural Assistance Act; Ambient Air Protection Act; Government Order No 65 of 
4 March 2010; Regulation of the Minister of Environmental Affairs No 14 of 24 March 2009; 
Regulation of the Minister of Environmental Affairs No 42 of 30 August 2009   
Regulation of the Minister of Economic Affa irs and Communications No 85 of 15 October 2010  
 Forest Act; Regulation of the Minister of Environment No 11 of 11 February 2009  
Regulation of the Minister of Economic A ffairs and Communications No 69 of 12 July 2011  
 5. Form of the subsidy 
 Grant.   
6. To whom and how the subsidy is provided 
 
Subsidy is provided to applicant's projects, which meet the criteria of Environmental Investment Centres measure "Wider use of renewable energy sources for energy production" (Regulation of 
the Minister No 14 and 42) and national environmental programmes.  
 In case of the Regulation of Minister Economic  Affairs and Communications No 85, the subsidy is 
provided in the frames of green investment scheme to invest in plants using wind energy to 
produce electricity. The maximum amount of grant is 20 Mio EUR, up to 80% of eligible costs can be supported. 
 
Subsidies for promotion of forests are granted in accordance with the relevant conditions of Private Forest Centre Foundation.  G/SCM/N/253/EU/Add.7 
 
- 18 - 
 
  In case of the Regulation of Minister Economic  Affairs and Communications No 69, the subsidy is 
provided in the frames of green investment scheme to buy electric cars. The applicants can inter 
alia be companies. The maximum amount of grant is 18 000 EUR, up to 50% of eligible costs can 
be supported. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 6.211 Mio EUR  Fiscal year 2012 – 21.696 Mio EUR   
8. Duration of a subsidy and/or any other time limits attached to it 
 
Different time limits appl y to different programs.  
 
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
 4.3  Excise Duty Exemption for Biofuel 
1. Period covered by the notification 
 
2011, 2012.   
2. Policy objective and/or purpose of the subsidy 
 
To enhance the use of environmentally friendly fuels (bioethanol, biodiesel) in order to reduce the 
emission of greenhouse gases by supportin g the production and use of biofuels.  
 3. Background and authority for the subsidy 
 
Ministry of Finance / Taxation and Customs Board.  
 4. Legislation under which subsidy is granted 
 Alcohol, Tobacco and Fuel Excise Duty Act.   
5. Form of the subsidy 
 
Excise duty exemption.   
6. To whom and how the subsidy is provided 
 
Excise duty exemption is granted to any producer  of biodiesel or bioethanol in Estonia, any 
producer of biodiesel or bioethanol in another EU  Member State (or third country) whose product is 
imported into Estonia and any importer of biodiesel or bioethanol into Estonia. The excise duty exemption takes place when the product is delivered for consumption, i.e. either as pure biofuel or 
blended into fossil fuel. Both the producing and blen ding of biofuels have to take place in excise 
warehouses.   The pure biodiesel or bioethanol are fully exempted  from excise duty. If the biodiesel is blended 
into the fossil fuel or bioethanol blended into fo ssil petrol the exemption applies to the amount of 
biodiesel or bioethenol respectively in the blended fuel.   
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 2.740 Mio EUR  
Fiscal year 2012 – 0.0 Mio EUR   G/SCM/N/253/EU/Add.7 
 
- 19 - 
 
  8. Duration of a subsidy and/or any other time limits attached to it 
 
 The program is valid till July 2011.   
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
 
5  DOMESTIC SUPPORT IN AGRICULTURE 
5.1  General Services 1. Period covered by the notification 
 
2011; 2012.  
2. Policy objective and/or purpose of the subsidy 
 
The programme aims at providing services and be nefits to agriculture or the rural community.  
 
3. Background and authority for the subsidy 
 The Ministry of Agriculture 
 
4. Legislation under which is granted 
 
- State Budget Act of 2011; 
- State Budget Act of 2012; - Rural Development and Agricultural Market Regulation Act of 19 June 2008; 
- European Union Common Agricultural Policy Implementation Act, 2009; 
- Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); - Development plan 2007 −2013 for Enhancing the Use of Biomass and Bioenergy; 
- Development plan 2007-2013 Conservation and Utilization of Plant Genetic Resources 
for Food and Agriculture 2007-2013; 
- National Programme Applied Research and Development in Agriculture 2009-2014; - The Estonian Organic Farming Action Plan 2007-2013 (OFAP); 
- National Programme for Plant Breeding 2009-2019; 
- National Beekeeping Programme 2010-2013.  
 
5. Form of the subsidy 
 
Grants.  
6. To whom and how the subsidy is provided  
 
a. Support for research is provided to the various institutions for development of 
agricultural policies, applied research for plant and livestock production, research related 
to breeding, incl. support for the breeding of farm animals.  
b. The support for pest and disease control is provided to institutions for developing pest 
and disease control measures. The compensation of removal and destruction of fallen 
stock is also included. 
c. The support for training includes practical training support, technical aid (seminars) from 
RDP 2007-2013, OFAP 2007-2013 and the National Beekeeping Programme. Practical 
training support is provided to agricultural producers for partial compensation of the 
expenses incurred with the supervision and organisation of practical training in the enterprise for studying agricultural specialities. 
d. Extension and advisory services include advice and information costs (information 
collection, publications, brochures, cross compliance materials, thematic seminars) for farmers and entrepreneurs in forest and food sector, and consultation services for G/SCM/N/253/EU/Add.7 
 
- 20 - 
 
  farmers and forest holders. The aim of the advisory and extension services is to support 
the setting up of farm advisory service sy stems and to support the provision of farm 
advisory and extension services. Advisory ce ntres have been designated to ensure the 
functioning of the agricultural advisory system, including the communication of 
information about state measures and the availability of quality advice (training plans, 
advisory tools, and analyses, advertising the advisory service, and looking for new advisers). The Ministry of Agriculture of the Republic of Estonia has subscribed to 
surveys about assessing and planning advisory activities and training services. 
e. The support for inspection services includes services concerning veterinary and food 
control, food quality and safety inspection programmes. 
f. Marketing and promotion services are aimed at supporting the marketing and promotion 
activities for agricultural producers and proc essors through participating in exhibitions 
and trade fairs and other joint promotion activities; gathering market information; granting support for activities related to improving the production, processing or 
marketing agricultural produce and introducing the latest research and development 
findings into production (including market  research, product development, promotional 
activities, training, competitions and fairs, quality assurance etc).  
g. The support for infrastructural services involves the maintenance of amelioration 
structures, aiming at promoting the development of infrastructure in rural areas. 
h. Under other types, the support for the replac ement of agricultural producer during the 
vacation period and illness is implemented. 
7. Subsidy per unit, or in cases, where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy  
 
Fiscal year 2011- grants of 24.314 million EUR from the Estonian state budget 
Fiscal year 2012 - grants of 24.1 million EUR from the Estonian state budget  
8. Duration of a subsidy and/or any other time limits attached to it 
 
Duration of a subsidy is the validation period of RDP 2007-2013, Development Plan for Enhancing 
the Use of Biomass and Bioenergy 2007 −2013 and Development Plan Gathering and Storing the 
Genetic Resources of Agricultural Cultures 2007-2013, for National Programme Applied Research 
and Development in Agriculture 2009-2014, Nation al Beekeeping Programme 2010-2013, National 
Programme Variety Breeding 2009-2019. For state aid measures, the validation period is the end 
of 2013, if a shorter period is not indicated, a ccording to the state aid guidelines. Other grants, 
subsidies and measures have no time limits attached to them.  
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
5.2  Public Stockholding For Food Security Purposes 
1. Period covered by the notification 
 
2011; 2012. 
 2. Policy objective and/or purpose of the subsidy 
 The programme covers the expenditures for purchasing and storing reserve stocks of different foodstuffs.  
3. Background and authority for the subsidy 
 
The Ministry of Agriculture. 
 G/SCM/N/253/EU/Add.7 
 
- 21 - 
 
  4. Legislation under which it is granted 
 
 - State Budget Act of 2011;   - State Budget Act of 2012; 
  - Emergency Act of 15 June 2009. 
 5. Form of the subsidy 
 The establishment, storage and replenishment of the stockpile are financed in accordance with relevant agreements.  
6. To whom and how the subsidy is provided 
 
Ministry of Agriculture has agreements with private enterprises, which act like partners of state to 
be prepared for urgency. 
 7. Subsidy per unit, or in cases, where this is  not possible, the total amount or the annual 
amount budgeted for the subsidy  
 
Fiscal year 2011 - grants of 0.016 million EUR from Estonian state budget Fiscal year 2012 - grants of 0.021 million EUR from Estonian state budget 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
No time limits are attached to it. 
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  5.3  Domestic food aid 
1. Period covered by the notification 
 
2011; 2012. 
 
2. Policy objective and/or purpose of the subsidy 
 
The objective of granting school milk support is to increase the consumption of milk by school 
pupils and kindergarten children, to encourage healthy eating habits and thereby promote the consumption of milk and milk products.  
The school fruit scheme provides school children (and since September 2012 also kindergarten 
children) with fruit and vegetables, aiming thus to  encourage good eating habits in young people. 
 
Stock for the benefit of the most deprived persons in the Community is distributed by Charitable 
Organizations. They distribute macaronis and othe r cereal products to the most deprived persons 
and are also the ones responsible for communication with the beneficiaries of the programme i.e. 
those referred to as most deprived  
 3. Background and authority for the subsidy 
 
The Ministry of Agriculture. 
 4. Legislation under which it is granted 
 State Budget Act of 2011; State Budget Act of 2012; 
European Union Common Agricultural Policy Implementation Act 2009. 
 G/SCM/N/253/EU/Add.7 
 
- 22 - 
 
  5. Form of the subsidy 
 
Grants  
6. To whom and how the subsidy is provided 
 
The school milk support and School Fruit Scheme are common market organization measures 
aimed to increase the consumption of milk or fruits and vegetables by school pupils, as well as to 
encourage healthy eating habits and thereby promote the consumption of milk, milk products, fruits and vegetables. Support may be granted fo r educational institutions (school/kindergarten), 
milk product providers, city governments/local m unicipalities or legal persons (e.g. non-profit 
organizations) which represent school/kindergarten.  
 Stock for the benefit of the most deprived persons in the Community are distributed to the most 
deprived persons.  
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 Fiscal year 2011 - grants of 1.044 million EUR from the Estonian state budget Fiscal year 2012 - grants of 1.109 million EUR from the Estonian state budget 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
No time limits are attached to it. 
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   5.4  Decoupled income support 
1. Period covered by the notification 
 
2011; 2012. 
 
2. Policy objective and/or purpose of the subsidy 
 
Support is provided as decoupled Complementary National Direct Payments (CNDP) to the Single 
Area Payment Scheme (SAPS).   3. Background and authority for the subsidy 
 The Ministry of Agriculture  
4. Legislation under which it is granted 
 
European Union Common Agricultural Policy Implementation Act 2009; 
Commission Decision C (2010) 2925 of 07 May 2010. 
 5. Form of the subsidy 
 
Grants  
 6. To whom and how the subsidy is provided 
 Decoupled CNDPs are provided to the applicant based on CNDP entitlements.   
These payments act as supportive measures to ensure the basic reproduction of the sector and to 
prevent further growth of unused lands, which is also a supplementary effect of the measures.  G/SCM/N/253/EU/Add.7 
 
- 23 - 
 
  The CNDP for arable crops (decoupled) is provided to the person who applies SAPS and who has 
CNDP entitlements for arable crops based on the de termined number of hectares of arable crops in 
2006 or/and 2008.  
The CNDP for seeds (decoupled) is provided to the person dealing with agricultural activities 
according to the CNDP entitlements for seeds based on the determined hectares of seeds in 2006.  
The CNDP for cattle (decoupled) is provided for dairy cattle or for dairy cows crossbreed based on 
the determined animal livestock units in 2006.  The CNDP for milk (decoupled) is provided to th e person dealing with agricultural activities 
according to the CNDP entitlements for milk which are based on the milk quota on his name as of 
31 March 2007.   
The CNDP for ewes (decoupled) is provided accord ing to CNDP entitlements for ewes based on the 
determined number of animals in 2007 taking into  account the minimum size of herd (10 ewes). 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 
Fiscal year 2011 - grants of 33.318 million EUR from the Estonian state budget 
Fiscal year 2012 - grants of 38.926 million EUR from the Estonian state budget 
 8. Duration of a subsidy and/or any other time limits attached to it 
 The CNDP could be paid until 2012 (included).  
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A.  
5.5  Government financial participation in  income insurance and income safety- net 
programmes 
1. Period covered by the notification 
 
2011; 2012. 
 
2. Policy objective and/or purpose of the subsidy 
 
The insurance support measure was implemented to partially compensate (up to 50% or up to 80%) the insurance premiums for agricultural crops, agricultural animals and poultry, bees 
insurance payments for small and medium-sized agricultural enterprises (SMEs). The purpose is to 
offer a sustainable solution to agricultural producers, in order to manage the losses caused by adverse weather conditions, climatic events and an imal and plant diseases or pest infestations. 
 
3. Background and authority for the subsidy 
 
The Ministry of Agriculture 
 4. Legislation under which it is granted 
 
-  State Budget Act of 2011, granted as state aid according to Commission Regulation 
(EC) No 1857/2006; 
-  State Budget Act of 2012, granted as state aid according to Commission Regulation 
(EC) No 1857/2006; 
-  Rural Development and Agricultural Market Regulation Act of 19 June 2008. 
 
5. Form of the subsidy 
 
Grants.  G/SCM/N/253/EU/Add.7 
 
- 24 - 
 
  6. To whom and how the subsidy is provided 
 
The insurance support is provided for small and medium-sized agricultural enterprises (SMEs).  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 Fiscal year 2011 – grants of 0.011 million EUR from the Estonian state budget 
Fiscal year 2012 – grants of 0.011 million EUR from the Estonian state budget  8. Duration of a subsidy and/or any other time limits attached to it 
 For state aid measures, the validation period is the end of 2013.   
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A  
 
5.6  Payment for Relief from Natural Disasters   
There were no grants of payment for relief fr om natural disasters awarded in 2011 and 2012. 
 
5.7  Structural Adjustment Assistance  Provided Through Investment Aids  
1. Period covered by the notification 
 
2011; 2012. 
 2. Policy objective and/or purpose of the subsidy 
 The programme aims at assisting producers by  offering financial restructuring aid.  
 3. Background and authority for the subsidy 
 The Ministry of Agriculture, Estonian Unemployment Insurance Fund, Rural Development Foundation (RDF) 
 
4. Legislation under which it is granted 
 
Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
European Union Common Agricultural Policy Implementation Act 2009; Rural Development and Agricultural Market Regulation Act of 19 June 2008;  
Labour Market Services and Benefits Act of 28 September 2005.  
 
5. Form of the subsidy 
 
Grants, loans, guarantees. 
 6. To whom and how the subsidy is provided 
 Through the RDP 2007-2013 following subsidies are provided:  
 Measure 1.2 - Setting up of young agricultural producers, support to younger than 40 year 
old agricultural producers for setting up new holdings. Target is to relief the difficulties of 
changing the generations. 
 Measure 1.4 - Modernisation of agricultural holdings, support for micro agricultural holdings 
with the target to enlarge the competitiveness of agricultural production via diversification 
of agricultural activities. 
 Measure 1.5 - Improving the economic value of forests and adding value to forestry 
products, the overall objective of the support for improving the economic value of forests 
and adding value to forestry products is to improve the competitiveness of private forest 
owners (both natural persons and legal persons governed by private law), non-profit G/SCM/N/253/EU/Add.7 
 
- 25 - 
 
  associations and commercial associations (forestry associations) of forest owners, and 
micro-enterprises active in industrial produc tion of wood and in forest management.  
 Measure 1.6 – Adding value to agricultural and non-forestry products, the overall objective 
is to improve the competitiveness of agricultural and non-wood forestry sector through the 
improvement of the general performance of ag ricultural and non-wood forestry produce 
processing enterprises (improvement of general economic indicators, decrease in environmental load, growth of export potent ial, etc.), and to ensure their long-term 
sustainability. 
 Measure 1.8 - Infrastructure of agriculture and forest management, support for land 
improvement activities of land improvement a ssociations via preserving the operation of 
drainage systems on agricultural land. 
 Measure 1.10 - Support for semi-subsistence farms undergoing restructuring 
 Measure 2.5 - Non-productive investments, the objective of the support for the 
establishment and restoration of stonewalls is to contribute to the establishment and 
restoration of stonewalls as traditional elements of agricultural landscapes, having high 
historic, cultural and landscape value. 
 
RDF grants, long-term loans and guarantees to farmers and other rural entrepreneurs and non-
profit organisations for different purposes are provided since 2008.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 Fiscal year 2011 – grants of 12.770 million EUR from  the Estonian state budget (the amount of 
guarantee on which the fee of guarantee is de creased and state aid element is included is 
0.049 million EUR).  
Fiscal year 2012 – grants of 13.811 million EUR from  the Estonian state budget (the amount of 
guarantee on which the fee of guarantee is de creased and state aid element is included is 
0.063 million EUR).  
8. Duration of a subsidy and/or any other time limits attached to it 
 
Duration of a subsidy is the validation period of RDP 2007-2013, for state aid and de minimis 
measures, the validation period is the end of 2013.  
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  5.8  Payment Under Environmental Programmes  
1. Period covered by the notification 
 
2011; 2012. 
 
2. Policy objective and/or purpose of the subsidy 
 
Support under the RDP is provided for environm entally friendly and sustainable production 
methods. It is also provided for the afforestation of agricultural land that is unsuitable for agricultural production and is out of use.   
The compensation of damages caused by wild animals and birds (protected by the Nature 
Conservation Act) is provided to compensate fo r the loss of yield for agricultural producers. 
 
3. Background and authority for the subsidy 
 
The Ministry of Agriculture, The Environmental Board 
 
4. Legislation under which it is granted 
 European Union Common Agricultural Policy Implementation Act 2009; G/SCM/N/253/EU/Add.7 
 
- 26 - 
 
  Rural Development and Agricultural Market Regulation Act of 19 June 2008; 
Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); Nature Conservation Act of 21 April 2004.  
5. Form of the subsidy 
 
Grants. 
 
6. To whom and how the subsidy is provided  
 The aim of the support provided by the RD P 2007-2013 (measure 2.3) is to introduce 
environmentally friendly production methods and increase the share of organic farming in 
traditional agriculture that will promote sustainabili ty of the environment by restricting the use of 
fertilizers and pesticides in the handling of organic foodstuffs, and facilitates the preservation of 
the natural fertility of the soil, the assurance of biological diversity and the continued use of semi-
natural grasslands. Support is granted annually and is calculated on the basis of income foregone and additional costs resulting from the given ac tions and the need to provide an incentive. 
Payments are based on the limitations on the use of  fertilizers, plant protection products or other 
inputs.   The support for grazing animals (animal welfare) is provided through the RDP 2007-2013 
(measure 2.4) since 2010. The objective of this me asure is to improve animal welfare, to maintain 
and improve biological and landscape diversity and to improve the soil fertility of cultural grasslands. This support is available for farmers (natural and legal persons, civil law partnerships 
and other associations of persons without the status of a legal person). Support is paid with regard 
to cattle, sheep, goats and horses, if the stocking density is up to 0.5 LU/ha.  
The support for the establishment of protection forest on agricultural land was provided through 
the RDP 2007-2013 in 2011 (measure 2.6), in order to protect water and soil from diffused pollution and erosion and the shores of water bodies from being washed away. 
 
The compensation of damages caused by wild  animals and birds (protected by Nature 
Conservation Act) is financed by the Environmental Board as de minimis for agricultural producers. 
The aim of support is to compensate yield or animal losses or resowing of arable crops. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 Fiscal year 2011 - grants of 8.777 million EUR from the Estonian state budget Fiscal year 2012 – grants of 9.030 million EUR from the Estonian state budget  
8. Duration of a subsidy and/or any other time limits attached to it 
 
Duration of a subsidy is the validation period of the RDP 2007-2013, for de minimis aid, the 
validation period is the end of 2013.  
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  5.9  Payment Under Regional Assistance Programmes  
1. Period covered by the notification 
 
2011; 2012. 
 
2. Policy objective and/or purpose of the subsidy 
 
General objective of the measure is to secure cont inuous land use in less-favoured areas (LFA) and 
NATURA 2000 areas.  G/SCM/N/253/EU/Add.7 
 
- 27 - 
 
  3. Background and authority for the subsidy 
 
The Ministry of Agriculture  
4. Legislation under which it is granted 
 
European Union Common Agricultural Policy Implementation Act 2009; 
Estonian Rural Development Plan 2007-2013.  
 5. Form of the subsidy 
 
Grants. 
 6. To whom and how the subsidy is provided  
 The aim of the measure is to secure the continuous land use in less-favoured areas. According to the estimation, there are about 465 000 ha of agricu ltural land in Estonia that falls under the 
category of less-favoured areas.  
 Considering the need to maintain biological and landscape diversity, it is necessary to ensure areas the agricultural lands compensation for the restrictions in LFA and NATURA 2000; this 
compensation is given RDP 2007-2013 (measures 2.1 and 2.2).  
 Also, RDP 2007-2013 measure 2.7 NATURA 2000 support for private forest land is provided under 
regional assistance areas. The overall objective of this measure is to contribute to the sustainable 
use of private forest land located in NATURA 2000 areas.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy  
 
Fiscal year 2011 - grants of 2.527 million EUR from the Estonian state budget 
Fiscal year 2012 – grants of 2.727 million EUR from the Estonian state budget  
 8. Duration of a subsidy and/or any other time limits attached to it 
 Duration of a subsidy is the validation period of the RDP 2007-2013.  
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 N/A.  
5.10  Fuel Tax Exemption 
1. Period covered by the notification 
 
2011; 2012. 
 2. Policy objective and/or purpose of the subsidy 
 Tax exemption is for agricultural producers using diesel fuel marked with fiscal markers in the 
machinery used in the agricultural production process. The aim is to reduce the tax burden of the agricultural sector. 
 
3. Background and authority for the subsidy 
 
The Ministry of Finance, Ministry of Agriculture 
 4. Legislation under which it is granted 
 
- Council Directive 2003/96/EC of 27 October 2003 Restructuring the Community 
Framework for the Taxation of Energy Products and Electricity; 
- Community Guidelines for State Aid in th e Agriculture and Forestry Sector 2007-2013; G/SCM/N/253/EU/Add.7 
 
- 28 - 
 
  - Alcohol, Tobacco and Fuel Excise Duty Act of 4 December 2002; 
- Rural Development and Agricultural Market Regulation Act of 19 June 2008. 
 5. Form of the subsidy 
 Tax exemption.  
6. To whom and how the subsidy is provided  
 
Tax exemption is for agricultural producers using diesel fuel marked with fiscal markers in the 
production process. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Tax exemption is calculated taking into account experts estimations on the amount of diesel fuel used in agriculture and the difference between the no rmal tax rate and reduced excise duty rate of 
diesel fuel marked with fiscal marker 
Fiscal year 2011 – tax exemption is calculated in the amount of approximately 24.751 million EEK  Fiscal year 2012 – tax exemption is calculated in  the amount of approximately 22.410 million EEK 
from the Estonian state budget 
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
No time limits are attached to it. 
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.   5.11  Short-Term Loan Guarantees 
1. Period covered by the notification 
 
2011; 2012. 
 
2. Policy objective and/or purpose of the subsidy 
 
The Guarantee Scheme is aimed at or facilitating SMEs access to financial resources. Short-term 
loan guarantees as de minimis  are given by the Rural Development Foundation (RDF) for 
agricultural producers. The guarantee extends only  to the debtor's principal obligation to the 
debtor's liability, and supplements. The Foundation is responsible only, if the claim against the 
principal debtor cannot be met. 
 3. Background and authority for the subsidy 
 Rural Development Foundation  
4. Legislation under which it is granted 
 
Rural Development and Agricultural Market Regulation Act of 19 June 2008.  
5. Form of the subsidy 
 
Interest exemption 
 
6. To whom and how the subsidy is provided  
 
The interest exemption is for agricultural producers using short-term loan guarantees given by the 
RDF.  G/SCM/N/253/EU/Add.7 
 
- 29 - 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 
Fiscal year 2011 – interest exemption 0.026 million EUR  
Fiscal year 2012 – interest exemption 0.022 million EUR  
 8. Duration of a subsidy and/or any other time limits attached to it 
 For de minimis measure, the validation period is the end of 2013.  
 9. Statistical data permitting an assessment of the trade effects of a subsidy 
 N/A.  
5.12  Complementary national dire ct payments (CNDP - coupled) 
1. Period covered by the notification 
 
2011; 2012. 
 2. Policy objective and/or purpose of the subsidy 
 
Coupled CNDP are provided to the applic ant, who raises suckler cows or ewes. 
The CNDP for suckler cows and ewes is provided to the producers equally, according to the number of animals the producer keeps. The animals have to be identified and registered in the 
Animal Register. For application the number of ewes must be at least 10. It does not foreseen the 
production growth and the support amount is neither linked to production volumes nor to price or income levels.  
 
3. Background and authority for the subsidy 
 The Ministry of Agriculture 
 
4. Legislation under which it is granted 
 
European Union Common Agricultural Policy Implementation Act, 2009. 
 5. Form of the subsidy 
 Grant.  6. To whom and how the subsidy is provided  
 The subsidy is provided to agricultural producers who raise suckler cows or ewes.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for the subsidy 
 Fiscal year 2011 – 2.503 million EUR from the Estonian state budget  
Fiscal year 2012 – 2.912 million EUR from the Estonian state budget  8. Duration of a subsidy and/or any other time limits attached to it 
 Coupled CNDP will be paid until 2012 included.   
9. Statistical data permitting an assessment of the trade effects of a subsidy 
 
N/A. 
 
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