Estonia's new economy minister faces scrutiny over ties to firm that got state startup funding
Estonia's newly appointed minister of economic affairs and industry, Liina Vahtras, is facing questions over a possible conflict of interest after startups linked to an investment firm she led received about €1.25 million in state support while she sat on the funding agency's board. Prime Minister Kristen Michal says she followed the rules since she did not take part in the funding decisions.
Center Party parliamentary group chair Lauri Laats has raised concerns with Prime Minister Kristen Michal over a potential conflict of interest involving Liina Vahtras, who was sworn in as minister of economic affairs and industry before the Riigikogu on Wednesday.
Before becoming minister, Vahtras had headed the Estonian Business and Innovation Agency's (EIS) e-residency program since 2023 and joined EIS's management board last summer. At the same time, she remained the sole management board member of Rochna Invest OÜ, a role she had held since June 2023. Rochna Invest is wholly owned by Cyprus-registered Rochna Holdings Ltd, whose beneficial owner is entrepreneur Timo Rein, and it holds minority stakes in several Estonian startups.
Laats said that during the period Vahtras served on EIS's board, the agency awarded roughly €1.25 million in support to companies in Rochna Invest's portfolio. The largest single grant, slightly over €454,000, went to Bisly OÜ last October, while Antegenes OÜ and Bidrent OÜ together received €803,665.
Vahtras told ERR she had declared her connection to Rochna Invest to EIS in line with its rules, and that she held no ownership stake in the company and received no board compensation or other income from it. She noted Rochna Invest itself received no EIS support — the grants went to three companies in which it holds small minority stakes: 2.07 percent in Antegenes OÜ, 4.87 percent in Bidrent OÜ, and 1.83 percent in Bisly OÜ. She said she did not take part in processing or deciding on grants tied to Rochna Invest-connected companies, and that such decisions fell outside her responsibilities as an EIS board member. Vahtras said she plans to leave the Rochna Invest board as soon as possible, expecting the change to be formalized no later than next week.
Michal said that after the matter drew media attention, Vahtras sent him an account confirming she had acted properly — the connection had been declared, and she did not participate in the relevant funding decisions.
