A new magnet factory, political challenges and flooding: 2025 in Narva

The past 12 months has brought new industry and political challenges to Narva, writes ERR journalist Sergei Stepanov in this look-back at the key events from 2025 in the Estonian border town.
The year 2025 in Narva was marked by a number of events connected to the development of the local industrial sector.
The most significant of these, not only for Narva or Estonia, but for the European Union as a whole, was the opening of a magnet factory, built in less than two years with the support of money from the EU's Just Transition Fund. The factory is the first step in the implementation of a pan-European plan to reduce its dependence on raw materials from Asia.
"It is rare to see a European Union strategy being implemented right before our eyes, but that is exactly what is happening here. In a very short time. I was a member of the European Parliament when we passed the first law on critical raw materials in 2022-2023. Today, in 2025, this plant has been built, it is already operational, and it is capable of ramping up production. This is proof that independence, sovereignty, and economic security are not just words, but a concrete reality," said European Commission Vice President Stéphane Séjourné after visiting the plant in Narva in early December.
Undoubtedly, the construction and opening of a new plant like this in Narva was a serious sign that the city is open to bold new projects and is ready to promote their development. All the bureaucratic issues related to the plant's construction were resolved by the local authorities in the shortest possible time, for instance.

"For Narva, it is a really pleasant sign that the city can be such an attractive place. Again, Narva is a city with industrial traditions. And this, in general, was undoubtedly pleasant," said local journalist Aleksei Ivanov.
However, despite the opening of this plant, the miracle that Narva residents had been hoping for – a flood of new job openings appearing on the labor market – did not happen. As things stand, the plant has 300 permanent jobs, most of which have been filled by specialists from abroad. There still remains hope that a second phase of construction will happen at the plant, and related enterprises may emerge as a result.
"When will this become an event for Narva, and when will the people of Narva realize that this is actually a really cool thing? I think that will be when the second phase of this plant goes ahead, if it ever does. And if, as they say, this plant attracts others like a magnet," said ERR journalist Jüri Nikolaev.
Political test
In political terms, the past year has also been a testing one for Narva.
Estonia's local elections took place against the backdrop of changes to the country's constitution and the deprivation of voting rights for Russian and other third-country citizens. While those changes did not significantly affect the election results, they also did not lead to the emergence of any new political forces in Narva City Council.
"The stated goal (of the reforms) was to improve internal security, but judging by the election results across the country, these divisions in society have only increased. I don't really see how this can have a positive effect on internal security or on the feeling that we (third-country nationals) are at home here (in Estonia)," said Aleksei Ivanov.
It came as a surprise that Mayor Katri Raik's list managed to win only five seats in the city council, and in order to retain her position as mayor, she once again formed a coalition with Mikhail Stalnuhhin, to reach a total of only 16 votes out of a possible 31.

Raik's re-election was difficult and only succeeded at the second attempt after securing the 16th vote in the coalition.
"Now we have to see what they will do – what exact decisions they will make. And the first decision from the new coalition is very telling in that regard. It was the appointment of the head of the specialist institution Narva Linna Arendus (Sergei Gorlatš – ed.). Now, we understand how much this golden 16th vote in the coalition is worth. It is worth exactly €1 million. Because after a choice like that, the Piilman family foundation, which donated this money, may take it back," Nikolaev said.
The heavy rainfall in August, which caused flooding of a large number of gardens also became a major test in 2025 for those who own summer houses (dachas) in the vicinity of Narva. The situation raised a lot of questions about the city's overall preparedness for crisis situations and the ability of the authorities to respond to emergencies.
Some of the problems that arose in the past year will also roll on into 2026. For example, the fate of the city's poorly constructed new football hall will only be decided in January. Next year will also show how viable and productive the current coalition in the Narva City Council really is.
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Editor: Michael Cole
Source: "Radionovosti ERR"








