State-owned enterprise AS Operail has sold its entire business, including its subsidiary Operail Repairs OÜ, to the Estonian company AS Tiigi Keskus for 19 million euros. The privatization was prompted by a sharp decline in freight traffic on the railway due to sanctions, as well as changes in the country’s strategy. Infrastructure Minister Vladimir Svet emphasized that freight traffic is not a strategically important task for the state, and the transfer of the business to private investors will allow it to focus on other priorities.
The new owner, AS Tiigi Keskus, plans to continue rail transportation in Estonia through its subsidiary RailProject OÜ and consider opportunities for expanding it. At the same time, some of the rolling stock belonging to the Russian company and subject to sanctions will remain at the disposal of the state, but will not be used for commercial purposes until the issue is resolved at the international level.
Operail has previously sold assets in Finland and completed the sale of rolling stock intended for lease. The loss of 83% of freight turnover due to the war in Ukraine and the associated sanctions made the railway business within the country economically unprofitable, which led to the decision to privatize.