WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.7 
16 November 2011 
 (11-5219) 
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/220/EEC/Add.7 
Page 2  
 
  ESTONIA 
 
TABLE OF CONTENTS 
Page  
I.  AID FOR RESEARCH AND DEVELOPMENT ................................................................... 3  
A.  R & D FINANCING PROGRAMME  ................................................................................................. 3  
B.  RISK CAPITAL SCHEME  ............................................................................................................... 4  
II.  OTHER HORIZONTAL AID ................................................................................................. 6  
A.  SUPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS ................................ 6  
B.  TRAINING PROGRAMMES FOR COMPANIES  ................................................................................ 7  
C.  GUARANTEE SCHEME FOR COMPANIES  ...................................................................................... 8  
D.  START -UP PROGRAMME  ............................................................................................................. 9  
E.  PROGRAMME FOR BUSINESS INCUBATORS  ............................................................................... 10  
F.  EMPLOYMENT AID .................................................................................................................... 11  
G.  LOAN SCHEME FOR COMPANIES  ............................................................................................... 13  
III. REGIONAL AID .................................................................................................................. .. 14 
A.  PROGRAMME OF TOURISM ........................................................................................................ 14  
B.  PROGRAMME OF INVESTMENT SUPPORT  .................................................................................. 15  
C.  INVESTMENT SUPPORT FOR SCIENCE AND TECHNOLOGY PARKS  ............................................ 16  
IV.  ENVIRONMENTAL AID ...................................................................................................... 17  
A.  SUBSTITUTION OF THE POLLUTION CHARGE  ........................................................................... 17  
B.  ENVIRONMENTAL PROGRAMME  ............................................................................................... 18  
C.  EXCISE DUTY EXEMPTION FOR BIOFUEL  ................................................................................. 20  
V.  DOMESTIC SUPPORT IN AGRICULTURE ..................................................................... 21  
A.  GENERAL SERVICES  .................................................................................................................. 21  
B.  PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES  ....................................................... 23  
C.  DOMESTIC FOOD AID ................................................................................................................ 24  
D.   DECOUPLED INCOME SUPPORT  ................................................................................................. 25  
E.   GOVERNMENT FINANCIAL PARTICIPATION IN INCOME INSURANCE AND INCOME 
SAFETY -NET PROGRAMMES  ..................................................................................................... 26  
F.   PAYMENT FOR RELIEF FROM NATURAL DISASTERS  ................................................................ 27  
G.  STRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AIDS ............... 27  
H.   PAYMENT UNDER ENVIRONMENTAL PROGRAMMES  ................................................................ 29  
I.   PAYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES  ....................................................... 31  
J.   FUEL TAX EXEMPTION  .............................................................................................................. 32  
K.   SHORT -TERM LOAN GUARANTEES  ........................................................................................... 33  
L.   COMPLEMENTARY NATIONAL DIRECT PAYMENTS (CNDP  - COUPLED ) .................................. 34   G/SCM/N/220/EEC/Add.7 
 Page 3 
 
 
   
I. AID FOR RESEARCH AND DEVELOPMENT 
A. R & D FINANCING PROGRAMME  
1. Period covered by the notification 
 
 2009, 2010.   
 2. Policy objective and/or purpose of the subsidy 
  The programme aims at increasing the competitiveness of companies through the support of 
R&D projects leading to new technologies, products, processes and services.   
 
The programme of Tallinn City Enterprise De partment aims at helping to implement 
innovative solutions in businesses situating in Tallinn and to assist the protection of innovative 
solutions by gaining industrial propert y protection in foreign countries.   
 
3. Background and authority for the subsidy 
  Enterprise Estonia (Foundation), which is an implementing agency for the Ministry of Economic Affairs and Communication.    
For City of Tallinn – City Enterprise Department.   
 Archimedes Foundation. 
 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 Tallinn City Council No. 23 of 20 April 2006.    
 Decision of the Managing Board of Foundation Archimedes of 9 May 2008. 
 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, pr e-competitive development activity projects, and 
feasibility studies. Aid is also granted to SMEs for the costs associated with obtaining and validating 
patents and other industrial property rights. Founda tion Archimedes provides subsidies for preparing 
the applications for financing in the frames of EU programmes.  
Generally the industrial research projects can be  supported up to 60% of eligible costs, which 
may increase up to 75% in special cases (SMEs, cross-border cooperation, wide dissemination of the 
results etc.).   
 G/SCM/N/220/EEC/Add.7 
Page 4  
 
   In case of industrial research carried out by public R&D ins titutions, public support can go up 
to 75% of the project costs.     Pre-competitive development activity projects can in general be s upported 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 preparat ory to pre-competitive development activities up to 
50% of the studies' costs.  
 Costs for industrial property rights can be supported up to 50%. 
  Maximum amount of support in case feasibility studies is 0.3 Mio EEK
1, in case of industrial 
research project 30.0 Mio EEK.    
For businesses in Tallinn:  eligible applicants are companies, self-employed entrepreneurs, 
natural persons.  The maximum support amount is 100  000 EEK and may cover up to 2/3 of the total 
project costs.  Support can be applied to cover the eligible expenses of a specific project, i.e. to cover 
the costs (fees and drafting costs) of national and in ternational proceedings related to the international 
patent applications.   
 
In case of support from foundation Archimedes the maximum grant amount is 60,000 EEK. 
 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 2009 – 17.3 Mio EEK  
Fiscal year 2010 – 9.3 Mio EEK  
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
 The programme of Enterprise Estonia is valid till 3 June 2008.   
 
 No time limits are attached to the Talli nn City Enterprise Department or foundation 
Archimedes programmes.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.    B. R
ISK CAPITAL SCHEME  
1. Period covered by the notification 
 
 2009, 2010.   
 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.  
                                                      
1 1 EUR = 15.6466 EEK.    G/SCM/N/220/EEC/Add.7 
 Page 5 
 
 
   
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.   
 5. 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 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-e quity. The total maximum size of investment 
tranche per target SME shall not exceed EUR 1.5 m illion over each period of 12 months. The tranche 
includes both the investments of EDF and the private co-investments. 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 cap ital 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 2009 – 6.2 Mio EEK   
 Fiscal year 2010 – 6.4 Mio EEK  
 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 assessmen t of the trade effects of a subsidy 
 
 N/A.    G/SCM/N/220/EEC/Add.7 
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  II. OTHER HORIZONTAL AID 
A. S
UPPORT FOR THE PARTICIPATION OF ENTREPRENEURS IN TRADE FAIRS 
1. Period covered by the notification 
 
 2009, 2010.   
 
2. Policy objective and/or purpose of the subsidy 
  To organise and support the participation of en trepreneurs in international trade fairs.   
 
3. Background and authority for the subsidy 
 
 For City of Tallinn – City Enterprise Department.   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.   5. Form of the subsidy 
 
 Grant.   
 6. To whom and how the subsidy is provided 
  Subsidy is paid to the participating co mpany (or sole proprietor) as a payment for 
participation costs, stand rental and other similar expenses.  The subsidy ca nnot 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 2009 – 1.1 Mio EEK  
 Fiscal year 2010 – 1.2 Mio EEK  
 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 assessmen t of the trade effects of a subsidy 
 
 N/A.     G/SCM/N/220/EEC/Add.7 
 Page 7 
 
 
  B. TRAINING PROGRAMMES FOR COMPANIES  
1. Period covered by the notification 
 
 2009, 2010.    
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.  
Enterprise Estonia (Foundation).     
 4. Legislation under which subsidy is granted 
  Regulation of Tallinn City Council No. 46 of 11 December 2008;  Regulation of Tallinn City 
Council No. 45 of 11 December 2008.  
 
 2004-2006 Structural Assistance Act;  2007-2013 Structural Assistance Act; Regulation of the 
Minister of Economic Affairs and Communicati ons No. 83 of 22 September 2006; 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 Depa rtment programme the subsidy is provided to 
companies to cover up to 50% of eligible costs.   In the frames of Enterprise Estonia programme the support is provided via County Development Centres to the companies c overing up to 70% of eligible costs. 
 
 In the frames of Foundation Innove progra mme 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 2009 –  1.9 Mio EEK  
 Fiscal year 2010 – 0.7  Mio EEK  
 G/SCM/N/220/EEC/Add.7 
Page 8  
 
  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 
programmes of Enterprise Estonia and Foundatio n Innove are valid till 31 December 2013.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.   
 C. G
UARANTEE SCHEME FOR COMPANIES  
1. Period covered by the notification 
 
 2009, 2010.    2. Policy objective and/or purpose of the subsidy 
  To promote mainly small and medium sized enterprises by supporting their access to capital by securing their bank loans.    3. Background and authority for the subsidy 
 
 Credit and Export Guarantee Foundation – KredEx. 
   Rural Development Foundation.   4. Legislation under which subsidy is granted 
 
 The Articles of Association of Credit and Export Guarantee Foundation (KredEx);  Support of Enterprise and State Loan Guar antees Act;  Decree of the Minister of Economic Affairs 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    
 
 Rural Development and Agricultural Market Regulation Act ; Decision of Supervisory Board 
of Rural Development Foundation of 24.11.2008;  Decision of Supervisory Board of Rural 
Development Foundation of 24.10.2007 ; Decision of Supervisory Board of Rural Development 
Foundation of 5.11.2009 . 
 
5. Form of the subsidy 
 
 Loan and leasing guarantees.   
 
6. To whom and how the subsidy is provided 
 
The guarantees 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 me dium sized companies (SMEs), loans are secured up 
to 75% of the loan amount.   
 
The loan recipient takes the primary responsibilit y for the loan, guaranteeing the loan with his 
property and/or that of third pers ons, and/or a personal surety. In case of surety, KredEx will take 
second responsibility. That means that if a business pl an fails and the businessman will not be able to 
manage his/her loan, the loan guarantee property sha ll be disposed at first. The guarantee of KredEx  G/SCM/N/220/EEC/Add.7 
 Page 9 
 
 
  shall be realised, if the income obtained from the r ealisation of guarantee property is not sufficient to 
fulfil the claims of the bank. 
 The maximum guarantee amount for small and medium-sized enterprises is EUR 2 million 
(31.3 Mio EEK) and the maximum guarantee amount for big enterprises is EUR 1.5 million (23.5 Mio 
EEK).  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 a nd 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 partic ular loan is decided by the bank which also 
submits a corresponding application to the Rura l 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 business of  the entrepreneur fails and the pledged property 
of the borrower is not sufficient for deleting the lo an 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 2009 – guarantee amount 248.6 ( aid element 28.5 ) Mio EEK  
 Fiscal year 2010 – guarantee amount 31.9 ( aid element 1.0 ) Mio EEK  
 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 assessmen t of the trade effects of a subsidy 
 
 N/A.   
 D. S
TART -UP PROGRAMME  
1. Period covered by the notification 
 
 2009, 2010.   
 
2. Policy objective and/or purpose of the subsidy 
 
 To provide individuals with the incentive to st art business and create new jobs.  Likewise, the 
programme intends to increase the survival ratio of new enterprises.   
 
3. Background and authority for the subsidy 
 
 For City of Tallinn – City Enterprise Department. G/SCM/N/220/EEC/Add.7 
Page 10  
 
   
For City of Narva - Department for Development and Economy. 
 
4. Legislation under which subsidy is granted 
  
Regulation of Tallinn City Council No. 52 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 undertaking being founded in Estonia or an 
undertaking that was entered into the Commercial Regi stry no longer than 36 months before the date 
of registration of the application and who is located either in City of Tallinn or City of Narva.   
 
 The grant is up to 200 000 EEK per applicant.   The grant amount will not exceed 2/3 (Narva 
25%) of the eligible costs. 
 
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 2009 – 4.2 Mio EEK 
 Fiscal year 2010 – 0.2 Mio EEK.   
 
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 assessmen t of the trade effects of a subsidy 
 
N/A.   
 
E. PROGRAMME FOR BUSINESS INCUBATORS  
1. Period covered by the notification 
 
 2009, 2010.   
 
2. Policy objective and/or purpose of the subsidy 
 
 The aim of the programme is to support the creation and development of innovative 
companies by providing them incubation services.   
 
3. Background and authority for the subsidy 
  Enterprise Estonia (Foundation).   
  
 For City of Narva - Department for Development and Economy. 
  G/SCM/N/220/EEC/Add.7 
 Page 11 
 
 
  4. Legislation under which subsidy is granted 
 
 2004-2006 Structural Assistance Act; Regulation of the Minister of Economic Affairs and Communication No. 132 of 31 October 2005.    
 Regulation of Narva City Council No. 25 of 29 June 2006. 
 5. Form of the subsidy 
  Grant.   
 
6. To whom and how the subsidy is provided 
  Support is provided for start-ups by way of  incubation services which include training.  
Maximum amount of support per business incubator is  3 Mio EEK, up to 100% of eligible costs can 
be covered.   
  In the frames of the programme of City of Narv a support is granted to legal persons of private 
law whose main activity is the providing of incubation services. 
 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 2009 – 0.9 Mio EEK 
 Fiscal year 2010 – 0.0 Mio EEK   
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
 The programme of Enterprise Estonia was valid till 30 June 2009.  No time limits are attached 
to the programme of City of Narva.  9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.    F. E
MPLOYMENT AID 
1. Period covered by the notification 
 
 2009, 2010.    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 ef ficiency and quality of labour market services; to 
stimulate job-creation.    3. Background and authority for the subsidy 
 
 Estonian Unemployment Insurance Fund  
   Tallinn City Enterprise Department.   G/SCM/N/220/EEC/Add.7 
Page 12  
 
   
4. Legislation under which subsidy is granted 
  Labour Market Services and Benefits Act.    
 Regulation of Tallinn City Council No. 51 of  13 December 2006; Regulation of Tallinn City 
Council No. 16 of 14 May 2009.  5. Form of the subsidy 
 
 Grant.   
 6. To whom and how the subsidy is provided 
  Subsidies are provided to companies and sole proprietors for recruitment of disadvantaged 
and disabled workers, to cover additional costs of employment of disabled workers (adapting 
premises or equipment) and for unemployed pers ons who start the entrepreneurship activity.   
 
Wage subsidy is a benefit payable to empl oyers for 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 or public ser vant but not more than the minimum monthly wage 
established by the Government.  The s ubsidy is paid for 6 months.   
 
Business start-up subsidy is for registered une mployed persons who want to start business 
activities.  The size of the subsidy is up to 70 000 EEK.   
 
Subsidy for the adaptation of premises and e quipment 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 the maximum amount of support is 200 000 EEK, up to 66% of costs for job creation are covered.   
 
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 2009 – 25.1 Mio EEK  
 Fiscal year 2010 – 16.3 Mio EEK  
 8. Duration of a subsidy and/or any other time limits attached to it 
 
 No time limits attached to the programme.    
9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.     G/SCM/N/220/EEC/Add.7 
 Page 13 
 
 
  G. LOAN SCHEME FOR COMPANIES  
1. Period covered by the notification 
 
 2009, 2010.    
2. Policy objective and/or purpose of the subsidy 
 
 The loan is aimed at financ ing of activities with a purpose to increase the competitive strength 
of a company by development or expansion.  
3. Background and authority for the subsidy 
 
 Credit and Export Guarantee Foundation – KredEx.  4. Legislation under which subsidy is granted 
 
 2007-2013 Structural Assistance Act.  The Articles of Association of Credit and Export Guarantee Foundation (KredEx);  Support of Enterp rise and State Loan Guarantees Act; Decree of the 
Minister of Economic Affairs and Communication  No. 21 4 of 6 July 2009;  Decree of the Minister of 
Economic Affairs and Communicati on 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 comp anies that are oriented on growth and that 
the banks are not ready to finance due to low ra te 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 conditionally enhance th e 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 f unds) will be positive for the enterprise. 
 
Amount of the loan is EUR 64 000 - 1 100 000 EUR (1 Mio EEK – 17.2 Mio EEK) 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 2009 – loan amount 0.0 Mio EEK  
 Fiscal year 2010 – loan amount 77.0 Mio EEK ( aid element 2.2 Mio EEK )  
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
 The programme is valid till 31 August 2015.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.   G/SCM/N/220/EEC/Add.7 
Page 14  
 
   
III. REGIONAL AID 
A. P
ROGRAMME OF TOURISM  
1. Period covered by the notification 
 
 2009, 2010.   
 2. Policy objective and/or purpose of the subsidy 
  To diversify the choice of Estonian tourism products and services, improve the quality of such 
products and services, raise international competitiv eness of the products and services, and increase 
demand for Estonian tourism products on the inte rnational target markets; invest in local 
infrastructure (in case of Kihnu island pr ogramme and small ports programme)  
 3. Background and authority for the subsidy 
  Enterprise Estonia (Foundation).    4. Legislation under which subsidy is granted 
  2004-2006 Structural Assistance Act; 2007-2013 Structural Assistance Act;  Regulation of the 
Minister of Economic Affairs and Communications No . 126 of 7 May 2004; Decree of the Minister of 
the Interior No. 123 of 22 November 2006; D ecree of the Minister of Economic Affairs and 
Communication No. 390 of 29 November 2007; Decree of  the Minister of the Interior No. 15 of 
9 February 2010; Procedure of Enterprise Est onia for supporting small ports of 11 March 2008. 
 
5. Form of the subsidy 
 
 Grant.    6. To whom and how the subsidy is provided 
 
 In case of tourism product development  programme any business company that is registered 
in Estonia and in which the state's or the local government's participation does not exceed 25%, can 
apply for the grant.    
Minimum amount of a product development grant is 800 000 EEK and maximum amount 
is 10 Mio EEK.  Minimum amount of a marketing grant is 75 000 EEK and maximum amount is 
1.5 Mio EEK. Grant can cover up to 50% of the costs eligible for assistance, in the Northern regions 
of Estonia (Harjumaa County and the City of Tallin n) the percentage of aid may not exceed 40% of 
the costs eligible for assistance.     In case of Estonia as a destination  programme the organizing of seminars, sales visits and 
marketing activities for travel agencies is supported.  
 In case of Kihnu island programme  the applicants could be self-employed persons and 
entrepreneurs whose activities are directed to th e achievement of the objectives of the programme. 
The grant is provided e.g. for investments to th e local infrastructure and for the development and 
marketing of tourism products. The maximum amount  of the grant is up to 2.5 million kroons per 
project and up to 85% of the eligible costs are compensated.  G/SCM/N/220/EEC/Add.7 
 Page 15 
 
 
   In case of small ports support programme  the applicants can inter alia be companies. Grants 
can cover up to 50% of eligible costs, ma ximum amount of support is 3 million kroons. 
 
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 2009 – 6.4 Mio EEK  
 Fiscal year 2010 – 8.6 Mio EEK  
 8. Duration of a subsidy and/or any other time limits attached to it 
 
 The tourism product development programme was valid till 30 April 2009.  No time limits are 
attached to other programmes.     9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.    B. P
ROGRAMME OF INVESTMENT SUPPORT  
1. Period covered by the notification 
 
 2009, 2010.   
 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 
  Agricultural Registers and Information Board  
 Rural Development Foundation 
  For City of Narva - Department for Development and Economy    4. Legislation under which subsidy is granted 
 
 Estonian Rural Development Plan; Regulation of the Minister of Agriculture No. 92 of 
7 September 2006¸ Regulation of the Minister of Agriculture No. 122 of 10 October 2007, Regulation 
of the Minister of Agriculture No. 20 of 12 Marc h 2008, Regulation of the Minister of Agriculture 
No. 59 of 12 June 2008, Regulation of the Minist er of Agriculture No. 92 of 27 September 2010. 
 Rural Development and Agricultural Market Re gulation Act; Decision of the Board of Rural 
Development Foundation of 15.01.2009 
 Budget of City of Narva 2009 and 2010 
 5. Form of the subsidy 
 
 Grant.   G/SCM/N/220/EEC/Add.7 
Page 16  
 
   
6. To whom and how the subsidy is provided 
  Subsidy is provided to the companies diversifying or expanding activities, to the agricultural producers who start non-agricultural activities in rura l areas or other companies (or activity groups 
whose members are companies) active in rural ar eas or small towns.  Subsidy is provided for 
investments related to the promotion of touris m 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 programme (Leader) up to 100% of eligible costs can be covered. 
 
 Ad hoc support is granted by Rural De velopment Foundation and 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 2009 – 65.3 Mio EEK  
 Fiscal year 2010 – 37.7 Mio EEK  
 8. Duration of a subsidy and/or any other time limits attached to it 
 
 The programme of Agricultural Register s and Information Board is valid till 
31 December 2013.  No time limits are attached to other programmes.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.    C. I
NVESTMENT SUPPORT FOR SCIENCE AND TECHNOLOGY PARKS  
1. Period covered by the notification 
 
 2009, 2010.   
 2. Policy objective and/or purpose of the subsidy 
  To improve the business environment of tec hnology-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 
 
 2004-2006 Structural Assistance Act; The Regula tion of the Minister of Economic Affairs 
and Communications No. 10 of 1 March 2007.    
5. Form of the subsidy 
 
 Grant.    G/SCM/N/220/EEC/Add.7 
 Page 17 
 
 
   
6. To whom and how the subsidy is provided 
  The subsidy is provided to legal persons in private la w who promote knowledge and 
technology transfer by providing high-level infrastru cture and support services and who have at least 
3 year experience in this field.   
  The maximum amount  per application is 33.3 million EEK, up to 70% of eligible costs may 
be covered.  The eligible costs include costs of pr eparation of land for building, costs of planning and 
construction of buildings, costs of equipment 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 2009 – 9.6 Mio EEK  
 Fiscal year 2010 – 8.3 Mio EEK 
 8. Duration of a subsidy and/or any other time limits attached to it 
 
 The programme was valid (applications c ould be submitted) till 30 April 2009.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.    
IV. ENVIRONMENTAL AID 
A. S
UBSTITUTION OF THE POLLUTION CHARGE  
1. Period covered by the notification 
 
 2009, 2010.   
 
2. Policy objective and/or purpose of the subsidy 
 
 The programme aims at decreasing polluti on by encouraging voluntary environmental 
protection investments.   
 3. Background and authority for the subsidy 
 
 The Ministry of Environment.   
 
4. Legislation under which subsidy is granted 
  Environmental Charges Act, Articles 48-55.   
 
5. Form of the subsidy 
  Pollution charge substitution with invest ments in environmental protection.   
 G/SCM/N/220/EEC/Add.7 
Page 18  
 
  6. To whom and how the subsidy is provided 
 
 According to the Environmental Charges Act co mpanies have to pay a charge for the release 
of pollutants or waste into the environment.  A ccording 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.    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 2009 – 2.3 Mio EEK  
 Fiscal year 2010 – 1.4 Mio EEK.   
 
8. Duration of a subsidy and/or any other time limits attached to it 
 
 Duration of support for applicant is up to 3 years.    9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.   
 B. E
NVIRONMENTAL PROGRAMME  
1. Period covered by the notification 
 
 2009, 2010.   
 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) 
 Ministry of Environment   Agricultural Registers and Information Board 
 Private Forest Centre Foundation 
  G/SCM/N/220/EEC/Add.7 
 Page 19 
 
 
  4. Legislation under which subsidy is granted 
 
 2004-2006 Structural Assistance Act; 2007-2013 Structural Assistance Act; Ambient Air Protection Act; Government Order No. 65 of 4.03.2010;  Regulation of the Minister of Environmental 
Affairs No. 18 of 22 March 2005; Regulation of the Minister of Environmental Affairs No. 14 of 
24 March 2009; Regulation of the Minister of Envi ronmental Affairs No. 13 of 17  February 2006; 
Procedure of Environmental Investment Cent re for financing environmental projects; 
  
 Environmental Charges Act, Article 19(5) 
 Regulation of the Minister of Agriculture No. 31 of 3 March 2006  
 Forest Act; Regulation of the Minister of Environment No. 11 of 11 February 2009 
 
5. Form of the subsidy 
  Grant.   
 
6. To whom and how the subsidy is provided 
  Subsidy is provided to projects, which meet the criteria of Environmenta l Investment Centre’s 
measures "Development of Environmental Infrastructur e" (Regulation of the Minister No. 18), "Wider 
use of renewable energy sources for energy produc tion" (Regulation of the Minister No. 14) and 
national environmental programmes.   
  According to the Environmental Charges Act co mpanies have to pay a charge for the release 
of pollutants into ambient air.  Article 19 sections  3 and 4 stipulate certain pollution charge rates for 
CO2. According to Article 19 section 5 allows relief of paying this charge in case of biomass, peat 
and energy use of waste.   
  Subsidies for promotion of forestry are grante d in accordance with the relevant conditions of 
Agricultural Registers and Information Board and Private Forest Centre Foundation.  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 2009 – 19.5 Mio EEK 
 Fiscal year 2010 – 19.5 Mio EEK  
 
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 assessmen t of the trade effects of a subsidy 
 
 N/A.   
 G/SCM/N/220/EEC/Add.7 
Page 20  
 
  C. E
XCISE DUTY EXEMPTION FOR BIOFUEL  
1. Period covered by the notification 
 
 2009, 2010.    
2. Policy objective and/or purpose of the subsidy 
 
 To enhance the use of environmentally frien dly fuels (bioethanol, biodiesel) in order to 
reduce the emission of greenhouse gases by supporti ng 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 bl ending 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 blende d into fossil 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 2009 – 12.8 Mio EEK   
 Fiscal year 2010 –  84.9 Mio EEK.    
 8. Duration of a subsidy and/or any other time limits attached to it 
 
 The programme is valid till July 2011.   
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A.   
  G/SCM/N/220/EEC/Add.7 
 Page 21 
 
 
  V. DOMESTIC SUPPORT IN AGRICULTURE 
A. G ENERAL SERVICES  
1. Period covered by the notification 
 
 2009; 2010 
 
2. Policy objective and/or purpose of the subsidy 
 
The programme aims at providing services and bene fits 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 2009; 
- State Budget Act of 2010; 
- Rural Development and Agricultural Mark et Regulation Act of 19 June 2008; 
- Estonian National Development Plan 2004-2006 (NDP); 
- 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 Co nservation and Utilization of Plant Genetic Resources 
for Food and Agriculture 2007-2013 
- National Programme Applied Research and Development in Agriculture 2004-2008; 
- National Programme Applied Research and Development in Agriculture 2009-2014; 
- The Estonian Organic Farmi ng Action Plan 2007-2013 (OFAP); 
- National Programme for Plant Breeding 2009-2019; 
- National Beekeeping Programme 2007-2010.   
 
5. Form of the subsidy 
  Grants  6. To whom and how the subsidy is provided  
 
(a) Support for research is provided to the va rious institutions for development of 
agricultural policies, applied research fo r 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 pr ovided 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 NDP 2004-2006 (until 2009), RDP 2007-2013, OFAP 2007-2013 and the 
National Beekeeping Programme. Practical training support is provided to 
agricultural producers for partial compensa tion of the expenses incurred with the 
supervision and organisation of practical training in the enterprise for studying agricultural specialities. G/SCM/N/220/EEC/Add.7 
Page 22  
 
  (d) Extension and advisory services include a dvice 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 
farmers and forest holders. The aim of the advisory and extension services is to support the setting up of farm advisory servi ce systems and to support the provision 
of farm advisory and extension services.  Advisory centres have been designated to 
ensure the functioning of the agricu ltural advisory system, including the 
communication of information about state me asures and the availability of quality 
advice (training plans, advisory tools, anal yses, 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 ai med at supporting the marketing and 
promotion activities for agricultural producer s and processors through participating in 
exhibitions and trade fairs and other join t promotion activities; gathering market 
information; granting support for activiti es 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, tr aining, competitions and fairs, quality 
assurance etc.).  
 
(g) The support for infrastructural services i nvolves the maintenance of amelioration 
structures, aiming at promoting the devel opment of infrastructure in rural areas. 
 
(h) Under other types, the support for the replacement 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 2009 - grants of EEK 373.433 million from the Estonian state budget 
Fiscal year 2010 – grants of EEK 375.528 million 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  NDP 2004 – 2006 (the last payments were 
made in 2009) and 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 Pr ogramme Applied Research and Development in 
Agriculture 2004-2008 (last payments in 2009)  and 2009-2014, National Beekeeping Programme 
2007-2010, 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, according to the state aid guidelines. 
Other grants, subsidies and measures ha ve no time limits attached to them. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A   G/SCM/N/220/EEC/Add.7 
 Page 23 
 
 
  B. P UBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES  
1. Period covered by the notification 
 
 2009; 2010  
2. Policy objective and/or purpose of the subsidy 
 
The programme covers the expenditures for purch asing and storing reserve stocks of different 
foodstuffs.  
3. Background and authority for the subsidy 
 
 The Ministry of Agriculture.  4. Legislation under which it is granted: 
 
- State Budget Act of 2009; 
- State Budget Act of 2010; 
- Emergency Act 2009. 
 5. Form of the subsidy 
  The establishment, storage and replenishment of  the stockpile are fina nced in accordance with 
relevant agreements. 
 6. To whom and how the subsidy is provided 
  Ministry of Agriculture has agreements with different (8) 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 2009 - grants of EEK 0.162 million from Estonian state budget 
 Fiscal year 2010 - grants of EEK 0.149 million 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 assessmen t of the trade effects of a subsidy 
 
 N/A 
 G/SCM/N/220/EEC/Add.7 
Page 24  
 
  C. D
OMESTIC FOOD AID 
1. Period covered by the notification 
 
 2009; 2010  
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 encourag e healthy eating habits and thereby promote the 
consumption of milk and milk products. 
 
Stock for the benefit of the most deprived persons in the Community is distributed by 
Charitable Organizations. They distribute macaroni and other cereal products to the most deprived 
persons and are also the ones res ponsible for communication with the beneficiaries of the programme 
i.e. those referred to as most deprived (in 2009 was financed partially from state budget, in 2010 
totally from EU budget).  
 The objective of School Fruit Scheme, started in  2010 is to increase the consumption of fruit 
and vegetables by children in schools, to encourag e healthy eating habits and thereby promote the 
consumption fruits and vegetables.   
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 
  Grants 
 
6. To whom and how the subsidy is provided 
 
The school milk support and School Fruit Sche me are common market organization measures 
aimed to increase the consumption of milk or fru its and vegetables by school pupils, as well as to 
encourage healthy eating habits and thereby promot e the consumption of milk, milk products, fruits 
and vegetables. Support may be granted for educa tional institutions (school/kindergarten), milk 
product providers, city governments/local muni cipalities 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 2009 - grants of EEK 12.916 million from the Estonian state budget 
Fiscal year 2010 - grants of EEK 11.467 million from the Estonian state budget 
  G/SCM/N/220/EEC/Add.7 
 Page 25 
 
 
  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 assessmen t of the trade effects of a subsidy 
 
 N/A   D.
  D ECOUPLED INCOME SUPPORT  
1. Period covered by the notification 
 
 2009; 2010  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 (2008) 3119 of 30 June 2008;  
- Commission Decision C (2010) 2925 of 07 May 2010. 
 5. Form of the subsidy 
  Grants    
6. To whom and how the subsidy is provided 
 
In 2009, decoupled CNDPs were provided to the applicant, who grew arable crops and seeds 
in 2006, cattle in 2006, ewes in 2007, or owned milk quota as of 31 March 2007. In 2010, decoupled 
CNDPs were provided to the appli cant based on CNDP entitlements.  
 
These payments act as supportive measures to en sure the basic reproduction of the sector and 
to prevent further growth of unused lands, which is also a supplementary effect of the measures. 
 The CNDP for arable crops was partially decoupled from production until 2009 and was 
provided to the producers equally according to the arable crop area the producer attends, not 
depending on production or crop yield. There are al so some additional requirements that must be 
fulfilled in order to receive the support. Until 200 9, the CNDP for arable crops (decoupled) was 
provided to the person dealing with agricultural activities and, who had applied CNDP for arable 
crops and seeds in 2006 and according to the determin ed number of hectares of arable crops in 2006 
and for which, aid application for SAPS is submitt ed in the current year. Since 2010, the CNDP for 
arable crops (decoupled) is provided to the pers on who applies SAPS and who has CNDP entitlements 
for arable crops based on the determined number of  hectares of arable crops in 2006 or/and 2008. 
 G/SCM/N/220/EEC/Add.7 
Page 26  
 
  Until 2009, the CNDP for seeds (decoupled) w as provided to the person dealing with 
agricultural activities and, who had applied for CN DP for arable crops and seeds according to the 
determined hectares of seeds in 2006, which were  also fields inspected and approved by the Plant 
Production Inspectorate for the certification of seed . From 2010, the CNDP for seeds (decoupled) is 
provided to the person dealing with agricultural activities according to the CNDP entitlements for 
seeds based on the same reference. 
 
The CNDP for cattle (decoupled) is provided to the person dealing with agricultural activities 
and, who had applied in 2006 CNDP for cattle or for dairy cows crossbreed with meat breed under 
CNDP for suckler cows and accordin g to the authorised eligible animal livestock units from 2007 
until 2009. Since 2010, the CNDP for cattle is provided according to the CNDP entitlements 2009 for 
cattle based on the same reference. 
 The CNDP for milk (decoupled) was provided to the person dealing with agricultural 
activities and according to the milk quota on his name as of 31
st March 2007 until 2009. Since 2010, 
the CNDP for milk is provided to the person dea ling with agricultural ac tivities according to the 
CNDP entitlements for milk which ar e based on the same reference.  
  
The CNDP for ewes (decoupled) was provided to the person dealing with agricultural 
activities and who had applied in 2007 CNDP for ew es and according to the determined number of 
animals taking into account the minimum size of herd (10 ewes) in 2007 until 2009. Since 2010, the 
CNDP for ewes is provided according to CNDP en titlements for ewes based on the same reference. 
 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 2009 - grants of EEK 223.322 million from the Estonian state budget 
Fiscal year 2010 - grants of EEK 500.091 million 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 assessmen t of the trade effects of a subsidy 
 
N/A 
 
E.  G OVERNMENT FINANCIAL PARTICIPATION IN INCOME INSURANCE AND INCOME SAFETY -NET 
PROGRAMMES  
1. Period covered by the notification 
 
2009; 2010. 
 
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 a nd poultry, bees insurance 
payments for small and medium-sized agricultura l 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 animal and plant diseases or pest infestations. 
  G/SCM/N/220/EEC/Add.7 
 Page 27 
 
 
  3. Background and authority for the subsidy 
 
The Ministry of Agriculture 
 4. Legislation under which it is granted 
 
State Budget Act of 2009, granted as state ai d according to Commission Regulation (EC) 
No. 1857/2006 
 
State Budget Act of 2010, granted as state aid according to Commission Regulation (EC) 
No. 1857/2006  
 
5. Form of the subsidy 
 
Grants 
 
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 2009 – grants of EEK 0.200 million from the Estonian state budget 
Fiscal year 2010 – grants of EEK 0.275 million from the Estonian state budget 
 
8. Duration of a subsidy and/or any ot her 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   
 
F.  P AYMENT FOR RELIEF FROM NATURAL DISASTERS   
 There were no grants of payment for relief from natural disasters awarded in 2009 and 2010. 
 
G. S TRUCTURAL ADJUSTMENT ASSISTANCE PROVIDED THROUGH INVESTMENT AIDS  
1. Period covered by the notification 
 
 2009; 2010.  
2. Policy objective and/or purpose of the subsidy 
 
The programme aims at assisting producers by offering financial restructuring aid.   G/SCM/N/220/EEC/Add.7 
Page 28  
 
  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 National Development Plan 2004 – 2006 (NDP 2004-2006); 
- Estonian Rural Development Plan 2004 – 2006 (RDP); 
- Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
- European Union Common Agricultural Policy Implementation Act of 24 March 2004  
- Rural Development and Agricultural Market Regulation Act;  
- Labour Market Services and Benefits Act, 2005.  
 
5. Form of the subsidy 
 
 Grants  6. To whom and how the subsidy is provided 
 
In 2009, the last payments of investment subsidies were provided through the NDP to 
agricultural producers (measure 3.1), who are c ontinuously maintaining economic productivity or, 
who can reach this after the investments are made. The producer must also fulfil at least the minimum 
amount of the requirements, which involve the envi ronment, the hygiene and welfare of animals.  
Also, two different measures are provided through the RDP 2004-2006: 
 
 Support for agricultural holdings, so they c ould meet the EU requirements – to adjust 
agricultural production, stock-raising and dung depots water protection demands to the EU 
requirements,  
 Support for semi-subsistence farms to give sm aller agricultural holdings temporary income 
support in the post-accession transitional period, a nd to thus contribute to the maintenance of 
smaller agricultural holdings and make  them more economically viable. 
 Subsidies are provided through the RDP 2007-2013: 
 Measure 1.2 - Setting up of young agricultural pr oducers, 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 fo rests 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 th e competitiveness of private forest owners (both 
natural persons and legal pers ons governed by private law), non-profit associations and 
commercial associations (forestry associations) of forest owners, and micro-enterprises active in industrial production of wood and in forest management.  
 Measure 1.6 – Adding value to agricultural a nd non-forestry products , the overall objective is 
to improve the competitiveness of agricultura l and non-wood forestry sector through the 
improvement of the general performance of agricultural and non-wood forestry produce 
processing enterprises (improvement of general economic indicators, decrease in 
environmental load, growth of export potential, etc.), and to ensure their long-term 
sustainability.  G/SCM/N/220/EEC/Add.7 
 Page 29 
 
 
   Measure 1.8 - Infrastructure of agriculture  and forest management, support for land 
improvement activities of land improvement associations via preserving the operation of 
drainage systems on agricultural land. 
 Measure 2.5 - Non-productive investments, the objective of the support for the establishment 
and restoration of stonewalls is to contribut e to the establishment and restoration of 
stonewalls as traditional elements of agricultu ral landscapes, having high historic, cultural and 
landscape value. 
 
In 2009, there was also a business start-up subs idy in the agricultural sector for unemployed 
persons2 paid from the Estonian budget, but in 201 0, this scheme was implemented from the EU 
budget. 
 
RDF grants, long-term loans and guarantees to fa rmers and other rural entrepreneurs and non-
profit organisations for different purposes is 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 2009 – grants of EEK 200.889 milli on from the Estonian state budget (included 
business start-up subsidy for agricultural sector 0.440  million. The amount of guarantee on which the 
fee of guarantee is decreased and state aid element is included is 0.72 million EEK). 
 Fiscal year 2010 – grants of EEK 138.297 million from the Estonian state budget. (The 
amount of guarantee on which the fee of guarantee is  decreased and state aid element is included is 
4.578 million EEK 
 8. Duration of a subsidy and/or any other time limits attached to it 
 
Duration of a subsidy is the validation pe riod of the Estonian NDP 2004-2006, RDP 2004 – 
2006 and RDP 2007-2013, for state aid and de minimis measures, the validation period is the end of 
2013.   
 9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 N/A   
 H.
  P AYMENT UNDER ENVIRONMENTAL PROGRAMMES  
1. Period covered by the notification 
 
 2009; 2010. 
 
2. Policy objective and/or purpose of the subsidy 
 
Support under the RDP is provided for envir onmentally 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. 
 
                                                      
2 The business start-up subsidy as total is shown under heading Employment Aid G/SCM/N/220/EEC/Add.7 
Page 30  
 
  3. Background and authority for the subsidy 
 
 The Ministry of Agriculture, The Environmental Board 
 
4. Legislation under which it is granted 
- Rural Development and Agricultural Mark et Regulation Act of 19 June 2008; 
- Estonian Rural Development Plan 2004-2006 (RDP 2004-2006); 
- Estonian Rural Development Plan 2007-2013 (RDP 2007-2013); 
- Nature Conservation Act. 
 
5. Form of the subsidy 
 Grants. 
 
6. To whom and how the subsidy is provided  
 
The aim of the support provided by the  RDP 2004-2006 and 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 sustainability  of the environment by restricting the use of 
fertilizers and pesticides in the handling of organi c 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 ca lculated on the basis of income foregone and 
additional costs resulting from the given actions and th e 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 the afforestation of agricultu ral lands unsuitable for agricultural production 
and out of use is provided through the RDP 2004-2006,  in order to contribute to the maintenance of 
landscape diversity and to the reasonable use of infe rior (soil quality rating up  to 35 evaluation points) 
agricultural lands.  
The support for grazing animals (animal welfar e) is provided through the RDP 2007-2013 
(measure 2.4) since 2010. The objective of this measur e is to improve animal welfare, to maintain and 
improve biological and landscape diversity and to impr ove the soil fertility of cultural grasslands. This 
support is available for farmers (natural and le gal persons, civil law partnerships and other 
associations of persons without the status of a lega l person). Support is paid  with regard to cattle, 
sheep, goats and horses, if the stocking density is up to 0.5 LU/ha. 
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 2009 - grants of EEK 81.457 million from the Estonian state budget 
 Fiscal year 2010 – grants of EEK 136.107 million 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 2004 – 2006 and the RDP 2007-
2013, for de minimis aid, the validation period is the end of 2013.   
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
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I.  P AYMENT UNDER REGIONAL ASSISTANCE PROGRAMMES  
1. Period covered by the notification 
 
 2009; 2010. 
 
2. Policy objective and/or purpose of the subsidy 
 
General objective of the measure is to secure  continuous land use in less-favoured areas 
(LFA) and NATURA 2000 areas. 
 
3. Background and authority for the subsidy 
  The Ministry of Agriculture  4. Legislation under which it is granted 
 
- Estonian Rural Development Plan 2004-2006 (RDP 2004-2006); 
- Estonian Rural Development Plan 2007-2013 (RDP 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 ag ricultural land in Estonia that falls under the 
category of less-favoured areas.  
 Considering the need to maintain biological a nd landscape diversity, it is necessary to ensure 
areas the agricultural lands compensation for th e restrictions in LFA and NATURA 2000; this 
compensation is given via RDP 2004 -2006 (l ast payments in 2009) and RDP 2007-2013 
(measures 2.1 and 2.2).  
 Also, RDP 2007-2013 measure 2.7 NATURA 2000 s upport 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 2009 - grants of 34.106 million EEK from the Estonian state budget 
 Fiscal year 2010 – grants of 37.586 million EEK 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 peri od of the RDP 2004-2006 and the RDP 2007-2013. 
 
9. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
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J.
  F UEL TAX EXEMPTION  
1.  Period covered by the notification 
 
 2009; 2010. 
 2.  Policy objective and/or purpose of the subsidy 
 
Tax exemption is for agricultural produces usi ng diesel fuel marked with fiscal markers  in the 
machinery used in the agricultural production pro cess. 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; 
 Alcohol, Tobacco and Fuel Excise Duty Act of 4 December 2002;  Rural Development and Agricultural Ma rket 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 products 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 normal tax rate and reduced excise duty rate of 
diesel fuel marked with fiscal marker. 
 
Fiscal year 2009 – tax exemption is calculated in the amount of approximately 
410.8 million EEK  
Fiscal year 2010 – tax exemption is calculated in the amount of approximately 
384.0 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 assessmen t of the trade effects of a subsidy 
 
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  K.  S HORT -TERM LOAN GUARANTEES  
 1. Period covered by the notification 
 
2009; 2010 
 2. Policy objective and/or purpose of the subsidy 
 
The Guarantee Scheme is aimed at or facilita ting SMEs access to financial resources. Short-
term loan guarantees as de minimis  are given by the Rural Development Foundation for agricultural 
produces. 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 
 
RDF 
 
4. Legislation under which it is granted 
 
Rural Development and Agricultural Mark et 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 pr oducts using short-term loan guarantees given by 
the RDF. 
 
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 2009 – interest exemption was not given 
 
Fiscal year 2010 – interest exemption 0.012 m illion EEK (the amount of guarantee on which 
the interest is decreased and the de minimis  element is included is 1.200 million EEK) 
 
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 assessmen t of the trade effects of a subsidy 
 
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  L.
  C OMPLEMENTARY NATIONAL DIRECT PAYMENTS (CNDP  - COUPLED ) 
1. Period covered by the notification 
 
2009; 2010 
 2. Policy objective and/or purpose of the subsidy 
 
Hereby are described payments based on fixed ar ea (364,330 ha in 2009, since 2010 there is 
no such coupled CNDP) and livestock payments made  on fixed number of head (13,416 suckler cows, 
48,000 ewes).  
 Partially coupled CNDP are provided to the a pplicant, who grows arable crops (till 2009), 
raises suckler cows or ewes. 
 
The CNDP for suckler cows and ewes is provide d 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. It does not foreseen the production grow th 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 produces who grow arable crops (in 2009), rise 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 2009 – 225.018 million EEK from the Estonian state budget  
Fiscal year 2010 – 39.986 million EEK 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 assessmen t of the trade effects of a subsidy 
 
 N/A 
  
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