The terms, approved by the Riigikogu in June, allow for up to 600 Swedish prisoners to be accommodated in the half-empty Tartu Prison to alleviate overcrowding in Sweden's jails.

Sweden will pay Estonia at least €30.6 million annually for maintaining readiness for 300 prison places, the Ministry of Justice has said.

On Wednesday, Justice and Digital Affairs Minister Liisa Pakosta (Eesti 200) and Swedish Prison and Probation Service Director-General Rikard Jermsten signed the Estonia–Sweden prison rental cooperation memorandum.

Pakosta and Jermsten both stressed the "historic" nature of the deal, saying such an agreement has never been implemented anywhere in the world before.

The minister said Estonia started discussing what to do about its empty prison spaces several years ago and decided to continue with the "least bad option," which retains local jobs and experience and benefits Estonia's domestic security.

"That we help another NATO country and that we, in this way, make the region more secure. Because the criminals do not know the borders of the states, and if we have an issue in a neighboring country, it is an issue for us as well," Pakosta said.

Rait Kuuse, head of the Estonian Prison Service, and Niklas Bellström, head of a unit at the Swedish Prison and Probation Service, also attended the official ceremony.

The cooperation memorandum contains agreements on practical arrangements concerning the daily lives of Swedish inmates at Tartu Prison, including the use of nicotine products, cell conditions, clothing and information channels.

First inmates arriving in August

Estonian officials have supported the agreement because they say it will keep Tartu Prison operational, preserve the capability of the Estonian Prison and Probation Service, and create hundreds of jobs in Southern Estonia.

The first inmates are expected to arrive in August and up to 200 Swedish inmates may be accommodated at Tartu Prison by the end of 2026.

Their number will gradually increase over the following year until the agreed capacity of 600 inmates is reached, the ministry said.

The inmates arriving from Sweden will be transported to Estonia by air. Upon arrival, they will be escorted directly to Tartu Prison by an armed escort unit.

All inmates placed in Tartu Prison will be selected in cooperation between Estonian and Swedish authorities. The ministry said final approval for each inmate's transfer to Estonia will be granted by Estonia.

The inmates transferred to Estonia will be adult men serving longer prison sentences, generally for violent or drug-related offences.

No inmate will be released into Estonia. All inmates placed in Tartu Prison will be returned to Sweden before the end of their sentence.

All costs related to the Swedish inmates will be covered by the Swedish state.

Sweden will pay Estonia at least €30.6 million annually for maintaining readiness for 300 prison places. From the 301st inmate onwards, an additional €8,500 per inmate per month will be paid. At full capacity, i.e. 600 inmates, the annual payment will amount to €61.2 million. The amount will be indexed annually by 3.5 percent.

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