History of the Estonian Stockpiling Agency (ESPA)

Accession to the European Union was the impetus for the creation of the Estonian Oil Stockpiling Agency

By the turn of the millennium, Estonia had left behind the turbulent years surrounding the restoration of independence, characterised by fuel shortages and empty petrol stations. In a short period of time, Estonia became an important transit country for petroleum products from Russia and at any given time, the country had on its territory a variety of fuels in the amount of up to several years’ domestic consumption. The risk of a fuel shortage seemed remote and unlikely.

With Estonia’s accession to the European Union in 2004, the need to establish a reserve of liquid fuels, which is compulsory for the Member States, became a focal point of discussion again. For a young and not very wealthy country, it was a difficult decision, both financially and economically, as there were several different stockpiling models to choose from. Consideration was given to both making the stockpiling obligation mandatory for companies operating in the Estonian fuel market and leaving this task to a state-owned company.

Inspired by the relevant German legislation and the example of the EBV (Erdölbevorratungsverband), the German National Petroleum Stockpiling Agency, the local parliament adopted the Liquid Fuel Stocks Act in February 2005, which established a 90-day normal consumption capacity of the stock, valid to this day, and the main principles of its constitution, maintenance, and management.

On 15 April 2005, the government of the republic decided to set up the Estonian Oil Stockpiling Agency, a state-owned company, with the task of acquiring and managing the national fuel stockpile.

In the early years of stockpiling, it consisted almost equally of both bought-out fuel and delegated stock, i.e. purchase options belonging to the state. Over time, the share of delegated stock decreased and is now marginal in relation to the total stock. The fuel stockpile level of 90 days of normal consumption was reached by December 2009. The share of Estonia’s liquid fuel stock in storage has also increased over the years, from 28% in 2006 to 85% in spring 2024.

The Estonian Oil Stockpiling Agency becomes the Estonian Stockpiling Agency and the operational reserves of the state are combined

Discussions to consolidate the management of the various strategic stocks of the state started in 2019. On 30 July 2020, the government approved a proposal by the minister of economic affairs and infrastructure to create a new organisation to manage national reserves by mid-2021. The restructuring was modelled on the Finnish NESA (Huoltovarmuuskeksus).

The outbreak of the coronavirus pandemic in early spring 2020 and the serious problems with the procurement of personal protective equipment and other emergency products significantly accelerated the process of preparing the new organisation. On 11 March 2021, the government sent the amendments to the Emergency Act to the local parliament, establishing the Estonian Stockpiling Agency on the basis of the Estonian Oil Stockpiling Agency. While the former only dealt with fuel reserves, the Estonian Stockpiling Agency, which started its operations on 1 July 2021, became responsible for managing all the operation stockpiles of the state.

As its first new task, the Estonian Stockpiling Agency took over the management of the stock of personal protective equipment from the Ministry of Finance in autumn 2021, followed by the management of the delegated national stocks of ready-to-eat food stock contracts inherited from the Ministry of Regional Affairs.

In 2022, the Estonian Stockpiling Agency started to build up a stock of medicinal products supplied through pharmacies and a strategic reserve of natural gas was added. In the spring of 2023, under the direction of the government, the Estonian Stockpiling Agency acquired the LNG jetty at the Port of Pakrineeme and started providing port services on 1 January 2024. In 2024, veterinary medicines and medical equipment and supplies vital for the population will be added to the national operational stock.