Ukraine-based DMSS has announced its plans to invest EUR3bn for the construction of an oil refinery in the town of Paldiski, Estonia.

DMSS, along with six Ukrainian and one Moscow-based construction companies, has signed an agreement with the Port of Tallinn to build the refinery facility next to Paldiski South Harbor. The refinery will be producing six million tons of refined diesel fuel, gasoline, and mazut per year.

Port of Tallinn chief commercial officer Erik Ringmaa was quoted by ERR News as saying that the port authority is serious about building the refinery but will not give the details of starting the facility.

"At the same time, we have ongoing talks with an alternative investor as well, for the event that something should change with the Ukrainians," Ringmaa added.

The Southern Harbor was selected to build the refinery because it does not freeze in winter and can accommodate large tankers to transport refined oil to Europe.