Estonian PM urges EU to impose tariffs on Russian goods to fund Ukraine’s reconstruction

Estonian Prime Minister Kristen Michal made this statement to POLITICO, according to Ukrinform.

According to him, the cost of restoring Ukraine’s infrastructure and cities destroyed by Russian bombing amounts to hundreds of billions of euros. Although Europe has imposed sanctions, banned imports of many Russian goods, and imposed tariffs on grain and fertilizers, it has not raised tariffs on permitted goods with the specific aim of providing aid to Ukraine.

“We need to tariff the goods from Russia to pay off the damages,” he said. “This has been the talk in different kinds of corridors [and] different meetings, that different kinds of tariffs on Russian goods could fund the reconstruction of Ukraine,” Michal said.

Last November, seven countries, including Estonia, called for the imposition of tariffs on Russian goods such as steel and fertilizers, but this initiative stalled and was not included in the 20th package of sanctions agreed upon by the EU this week.

Michal argued that even the EUR 210 billion in frozen Russian assets held in a financial depository in Brussels would not be enough to cover the massive reconstruction bill.

A study commissioned by the Ukrainian government, the United Nations, the European Commission, and the World Bank and published last February showed that Ukraine’s recovery would require EUR 500 billion over ten years. The study also found that 13% of Ukraine’s housing stock was destroyed during the first three years of the war.

“They should be held responsible,” Michal said, referring to Moscow. “Because if they are not held responsible, then this will repeat. We [Estonia] have a longer history with Russia. We know what Russia is. We gained our independence not so long [ago].”

As reported by Ukrinform, Estonian Prime Minister Kristen Michal considers Ukraine’s accelerated accession to the EU a good idea, but emphasizes the need for the candidate country to meet the criteria and implement reforms.

Photo: Yevhen Matyushenko