The funding will be paid initially until the end of this year, the ministry said.

The support measure was first introduced by the government in 2020 during the COVID-19 pandemic, when the closure of national borders halted regular passenger transport. The state last provided this support in the third quarter of 2023.

"Although the pandemic is over, business volumes have not yet fully recovered, and the sector continues to be affected by uncertainty caused by Russia's aggression in Ukraine," said Minister of Infrastructure Kuldar Leis (Reform).

"Passenger shipping is a strategically important sector for Estonia, which is why it's essential to ensure it continues to operate even under more challenging economic conditions," he continued.

The minister pointed out similar policies in neighboring countries. For example, Finland and Sweden partially cover labor taxes for ship crews, and in Latvia, the overall tax burden on shipping is lower.

"Without a similar measure, Estonian ships and jobs could sooner or later relocate to neighboring countries, which would mean a loss of nearly €54 million annually in tax revenue for our country. The support helps keep costs under control, preserve jobs, and retain tax income in Estonia," said Leis.

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