Both the Ministry of Regional Affairs and Agriculture and Eesti Post have prepared extensively to plan bringing a strategic private partner into the company, Minister of Regional Affairs and Agriculture Hendrik Terras (Eesti 200) said Friday.

"The possible privatization of Eesti Post has been discussed for years," Terras said.

He noted the company is no longer merely a postal service, but an international logistics group operating — under the Omniva brand — across the Baltics and earning much of its revenue outside Estonia.

This shift, he said, raises questions about Eesti Post's role in providing services and in the broader economy. Given the logistics market's competitiveness and capital needs, Terras said bringing in a private partner would give the company more flexibility in management and expansion decisions and allow it to operate without direct state intervention.

Last summer, Terras had flagged potential insolvency risks and called for a special audit to assess how management decisions had affected the company's finances. He emphasized, however, that the audit is not the reason why the state wants to privatize Eesti Post.

"The point of the special audit is to give the owner a better overview of the company's operations and increase transparency," the minister explained. It also provides a clear picture for potential strategic partners and helps ensure transparency for both employees and the ministry.

He added that the audit and preparations for privatization are happening in parallel, complementing each other.

Privatization, Terras said, would strengthen Estonia's logistics sector and bring additional private-sector investment into the company.

"Universal postal services — Eesti Post's original and primary function — are guaranteed for consumers through at least 2029," he emphasized, adding that by law, contracts can extend the services until 2034.

The regional affairs minister noted that while usage has declined — largely consisting by now of mailing Christmas cards once a year — postal services must remain accessible throughout the country.

"This is the state's clear priority and duty," he underscored.

For logistics and international operations, Terras said the goal is to give Eesti Post more growth opportunities, and involving a strategic partner would create the necessary conditions for expansion. It would also provide the state with a one-time revenue boost to help strengthen the state budget.

According to Terras, the government has not made a final decision. However, both the ministry and Eesti Post have prepared extensively to carefully and deliberately plan the company's future, and the process has involved analyzing universal postal service operations as well as Eesti Post's actual role in today's economy.

"Preparations have been made, and now the decision is in the government's hands," Terras said, adding that officials aim to advance a potential deal in the second half of next year.

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