Large Number of Russians & Belarusians Continue Using Estonia’s E-Residency Program Despite Restrictions

Despite ongoing restrictions, a significant number of Russian and Belarusian nationals continue to hold Estonian e-residency and operate businesses within the country and the EU.

According to recent data from the Estonian Business and Innovation Agency (EISA) as of August 27, 2024, there are still 995 Russian e-residents associated with 1,039 companies and 281 Belarusian e-residents linked to 284 businesses.

Since the launch of Estonia’s e-residency program, Russian nationals have created a total of 1,814 companies, while Belarusians have established 382 firms. However, data from Statistics Estonia shows that by 2022, there were 2,947 companies in Estonia controlled by Russian citizens and 747 by Belarusian nationals.

Following Russia’s invasion of Ukraine, Estonia has increasingly restricted the ability of Russian and Belarusian nationals to use e-residency for business purposes. In March 2022, the Estonian government halted the issuance of new e-residency digital IDs to citizens of these two countries.

“This was one of the first decisions made by the government in response to the full-scale war in Ukraine,” explained Oscar Õun, Risk Manager for the e-residency program within the EISA framework.

Existing e-residents from Russia and Belarus were not stripped of their status, but no new applications have been accepted since March 2022. This move has led to a steady decline in the number of e-residents from these countries. Before the war, 8.5% of Estonian e-residency cards were held by Russian and Belarusian nationals. By the end of summer 2024, that number had decreased to 5%.

In March 2022, there were 4,421 Russian and 902 Belarusian e-residents. As of now, those numbers have dropped to 2,573 Russians and 565 Belarusians, marking a 42% decrease in just two and a half years.

Despite the halt on new e-residency applications, Russian and Belarusian nationals still have other ways to manage an Estonian company. According to Anita Preinvalts, senior commissioner at the Police and Border Guard Board’s (PPA) ID and status office, “nationals from Russia and Belarus can still manage an Estonian company without e-resident status” through options like notarized authorized representatives or by using trusted eID documents from other countries under the eIDAS regulation. “Even Belgian ID cards can be used for this purpose,” Preinvalts added.

Estonia’s e-residency program, launched in 2014, is a government initiative offering digital identity cards to global entrepreneurs, allowing them to start and manage businesses online. Despite the restrictions, it remains a popular tool for foreign nationals, particularly from Russia and Belarus, seeking to operate in Estonia and the EU.

By fLEXI tEAM