"There is always someone interested in every company," Lepp said. "At the moment, foreign investors are tending to be rather cautious, while local investors are looking for opportunities."

Lepp pointed to geopolitical security issues as one of the reasons behind the lack of broader interest among foreign investors in Estonia.

"The money is there in Estonia," Lepp said. "Pension funds have their stability back, so, privatization a very good opportunity for them too, in terms of investing in Estonian companies."

Lepp added that of the companies in the list published by the government, those related to Eesti Energia and a stake in Port of Tallinn (AS Tallinna Sadam) could be the most interesting for potential investors.

"In some cases, the question arises as to what the assets being sold are," Lepp said, in reference to Nordea and Operail.

Asked what the purpose of privatization may be, Lepp responded with a list of reasons as to why the state might own companies in the first place: protection of strategic interests, provision of public services, support for economic development and creation of jobs.

"The protection of strategic interests would be a real consideration," he said, adding however, that with this in mind, it raises questions as to why Saarte Liinid and Omniva for instance, are not also being privatized.

Lepp said that privatization reduces the risk of political interference on the running of companies. A broader investor base is beneficial this context, as is the injection of essential expertise, he added.

On Thursday, the Estonian Ministry of Finance revealed the seven state-owned companies that the ministries, in their capacity as stakeholders, have judged most appropriate for privatization. Ministers will now begin making preparations for the privatization process, the finance ministry said.

According to the ministry, five state-owned companies are to be divested: Teede Tehnokeskus (Technical Center of Estonian Roads), Operail, Nordic Aviation Group and Transpordi Varahaldus, while the state would also reduce its stake in AS Tallinna Sadam to 51 percent.

In addition, two subsidiaries of Eesti Energia – Enefit and Enefit Green – would be partially privatized, according to the proposal by the Ministry of Finance.

For three of the companies, the need to divest public shareholdings or to involve the private sector in the provision of services, will be subject to further analysis.

While for piloting company Eesti Loots and prison labor company Eesti Vanglatööstus, the process of liquidation, which had been decided on previously, will continue as planned.

For the remaining companies, the current level of shareholding will be maintained, with the next review due to take place within three years.

In total, the Estonian state has stakes in 28 companies. In 23 of those, the stake amounts to 100 percent.

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