In north-east Estonia, a small local government has been pledged EUR 125 000 per year so that a pulp mill would be built on its territory by Viru Keemia Grupp, Estonian public broadcaster ERR reports.
Located in Ida-Viru Country, the Lüganuse vald local government administers a 600 km2 territory with a 8 396 population and a number of towns. Although pulp mill plans in recent years coming to nothing, following environmental protests, Viru Keemia Grupp has noted that the pulp mill would boost renewable energy production at a time when the EU recently unveiled its long-term package of climate goals.
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Ahti Asmann, VKG board chair, called this «a good will gesture» and «a good offer» that would see the local area benefit from the industrial business.
Lüganuse vald mayor, Andrea Eiche, commented to ERR: «This is certainly no sweetener for the municipality, in the hopes that some kind of benefit will arise. The sum, in the context of the municipality’s budget, is still relatively small. It’s certainly not a decisive development.»