Ukraine cooperation strengthens business ties between Estonia and Japan
According to the Estonian Center for International Development (ESTDEV), cooperation between Estonia and Japan on housing for Ukrainian Internally Displaced Persons (IDPs) has also strengthened business ties between the two countries.
The joint project in Ukraine has brought Estonia's largest wooden module manufacturer, Harmet OÜ, together with Japan's façade material producer NICHIHA Corporation to construct Ukraine's first three-story modular wooden building.
The project is funded by ESTDEV and the Japan International Cooperation Agency (JICA).
Last week, JICA and NICHIHA hosted a construction seminar at Harmet's factory, where module production is already underway. The seminar showcased how Japanese façade materials can be used in modular wooden apartment buildings.
"Harmet sees an excellent opportunity to cooperate with the Japanese company NICHIHA in the reconstruction of Ukraine and in the implementation of other potential projects," said Harmet CEO Alo Tamm.
"The first pilot project in Brusyliv has progressed smoothly. Hopefully, our cooperation will help open new markets for other Estonian companies, as well, and export Estonian skills and know-how around the world," he added.
The 18-unit apartment building in Brusyliv will provide permanent housing for IDPs and meet EU energy efficiency standards, using passive house principles and solar energy.
Wooden modular construction enables fast delivery of sustainable, high-quality housing and supports the modernization of Ukraine's construction sector.
"For the Brusyliv project, we have expanded our network of partners, creating added value for Ukraine's reconstruction process and involving a like-minded partner in the form of JICA," said Margus Gering, ESTDEV's regional head for Europe and Cooperation and Development in Ukraine.
"It is important that the cooperation is not limited to this single project," Gering continued, adding that "it creates the conditions for strengthening business ties between Estonian and Japanese companies to support Ukraine jointly with practical solutions," Gering added.
According to ESTDEV, Japan is interested in continuing cooperation to help support Ukraine's recovery.
In August 2025, ESTDEV and JICA signed an agreement in Tokyo to build additional IDP housing in the Zhytomyr Region, which received around 126,000 IDPs at the start of Russia's full-scale invasion. Around 56,000 now remain there, making Estonia's reconstruction efforts critical. ESTDEV is also converting former barracks in Ovruch into housing for IDPs.
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Editor: Michael Cole
