Estonian Review 20-28 October 2010
FOREIGN NEWS
DOMESTIC NEWS
DEFENCE NEWS
ECONOMIC NEWS
CULTURAL NEWS
FOREIGN NEWS
Prime Minister Andrus Ansip and German Chancellor Angela Merkel Discuss Euro Zone and Budgetary Policy
21 October - Prime Minister Andrus Ansip and German Chancellor Angela Merkel focused on euro zone issues in their meeting today. The heads of state conceded that the crucial factor for the success of both the European Union and the euro is the good public finances of the member states and the how to ensure it. They also discussed the issues to be focused on in the European Council meeting next week and the bilateral and international co-operation between the two states. Prime Minister Ansip thanked Chancellor Merkel for Germany’s support for Estonia’s endeavours to become a member of the euro zone as well as for its contribution to Baltic air security in the framework of NATO co-operation.
Speaking of the reform of euro zone rules, Prime Minister Ansip emphasised that Estonia shares the same position as Germany. Both states are in favour of a strict budgetary policy. The heads of state found that good public finances in the member states serve as the basis for the competitiveness of the EU. Merkel welcomed Estonia to the euro zone, noting that the joining of a state that respects strict financial policy principles would support discussions on the monetary policy of the euro zone. Prime Minister Ansip assured that Estonia would support proposals strengthening the co-ordination of budgetary and macroeconomic policies. The prime minister also pointed out the German chancellor’s leading role in helping the euro zone out of the crisis.
The prime minister also thanked Chancellor Merkel for Germany’s contribution to Baltic air defence. “In 2011 Germany will take over Baltic air security for the fourth time. Your planes in our sky are real proof of NATO’s security guarantee to the people of Estonia.”
Today Prime Minister Ansip made a speech to German business circles in Haus der Commerzbank on Estonia as a member of the euro area, introducing the main trends in Estonia’s economic development as well as the current positions. “The key to the success of the European Union is a strict budgetary policy – this is the main message of Estonia as a new member of the euro zone,” he emphasised.
President Ilves Meets with Macedonian Head of State
25 October - The heads of state of Estonia and Macedonia*, Toomas Hendrik Ilves and Gjorge Ivanov, met today in Tallinn and described relations between their two countries as warm, work-related, future-orientated, and based on sharing common values.
“Macedonia stands on the brink of accession negotiations with the EU and NATO and is an important Balkan partner for Estonia. We remain willing to share the experiences of our own accession to these organisations with Macedonia,” said President Ilves.
“I have no doubt that our co-operation in the sphere of information and communication technology will develop further, and hopefully more direct contacts between the businesspeople of our two countries will be established. Estonia has provided all the pre-requisites for that, including a transparent business environment, a secure legal system, government administrative capacity, and a favourable economic climate for investments.”
President Ilves expressed his pleasure with the fact that Macedonia plans to organise a number of cultural events in Estonia next year, when Tallinn will become the Cultural Capital of Europe.
The Estonia head of state described the progress achieved by Macedonia in approaching the EU and NATO and in organising internal national reforms as “impressive”. “Macedonia meets all the requirements established for gaining NATO membership,” President Ilves stated as he acknowledged Macedonia for its remarkable contribution to the Alliance’s operation in Afghanistan.
“The 300 defence force members and medics you have supplied to participate in this operation serve as confirmation of Macedonia’s responsible policies and desire to participate in making the world a more peaceful place,” said the president.
Presidents Ilves and Ivanov also discussed the biggest obstacle to Macedonia’s movement towards the EU and NATO, specifically the name dispute with Greece, which has not allowed Macedonia to launch accession negotiations with the two organisations.
“Bilateral issues shouldn’t serve as an obstacle to accession negotiations, but the enlargement of both the EU and NATO is a matter of consensus policy of these organisations,” President Ilves stated, also saying that pragmatic and constructive negotiations between Skopje and Athens are required to reach a compromise in the name issue; this is also the position of the UN, which is mediating the negotiations.
President of Macedonia Gjorge Ivanov also met with Speaker of the Riigikogu Ene Ergma, Prime Minister Andrus Ansip, and Minister of Justice Rein Lang, and visited Lahemaa National Park.
* Former Yugoslav Republic of Macedonia
Government Approved Action Plan for Increasing Involvement of Women in Peace and Security
21 October - The Government today approved Estonia’s action plan for the implementation of UN Security Council resolution no. 1325, “Women, Peace and Security”, in Estonia from 2010–2014. According to Foreign Minister Urmas Paet, the UN Security Council resolution reflects the understanding that the key to solving conflicts and crises and securing peace is the protection of civilians, including the more active involvement of women. “The resolution is the first decision that recognises how much damage is caused to women and children by armed conflicts,” said the foreign minister. “With this resolution, the international community established a goal of identifying guidelines for the protection of women and girls, but also for increasing the involvement of women in peace negotiations and in reinforcing peace after the settlement of conflicts,” Mr. Paet explained.
“Currently about 20 countries have drafted a national programme for the implementation of the resolution. The international community must adopt a more active approach and put more effort into the full implementation of the UN resolution and legislation thereupon,” Paet said. “The importance of the resolution for Estonia is confirmed by the fact that an international conference organised by the Ministry of Foreign Affairs and the Estonian Atlantic Treaty Association to celebrate the 10th anniversary of the UN resolution will take place in Tallinn in November. At the conference we will be focusing more specifically on the circumstances of Afghan women,” Paet said.
Paet emphasised three main reasons why achieving the obligations set out in the resolution is important for Estonia: first of all, as a member of the UN, European Union, NATO, and the OSCE, Estonia participates actively in securing international peace and security. Secondly, the promotion of the rights and circumstances of women is one of the priorities of Estonia’s foreign policy, development co-operation, and human rights efforts. And thirdly, Estonia is boosted by its contribution into military and civil missions to countries where resolving conflicts and reinforcing peace is directly related to the implementation of resolution no. 1325. The consideration of gender issues in planning and implementing missions will enhance the efficiency of international efforts.
The priorities of Estonia’s action plan include political and diplomatic activities in international organisations, bilateral and multilateral development co-operation, and humanitarian assistance for improving the circumstances of women in post-conflict situations.
Estonian and Finnish Foreign Ministers Raise European Neighbourhood Issue in Joint Address
20 October - Estonian Foreign Minister Urmas Paet and Finnish Foreign Minister Alexander Stubb sent a joint address to Catherine Ashton, the EU High Representative for Foreign Affairs and Security Policy, and Stefan Füle, the Commissioner for European Neighbourhood Policy, in which Estonia and Finland highlight the need for a European Union Neighbourhood Policy that would focus with greater commitment upon co-operation between the EU and neighbouring countries and their development. “The EU needs to be capable of solving complicated situations, including conflicts in the EU neighbourhood, in order to be an active participant in world politics,” said the Estonian and Finnish foreign ministers.
Paet and Stubb emphasised in their letter that developed neighbouring countries also provide an advantage for the economic development of Europe, including the European Union, and that the EU should make a greater effort to achieve the desired outcome. “The development of both our eastern and southern neighbourhood is important for the future of Europe; the stability, democracy, and economic development of these regions clearly serves the interests of Europe. The European Union needs well-developed and actively co-operating neighbours,” they wrote. “We must establish realistic objectives for ourselves. To help the neighbours of Europe become more active partners of the EU, the European Neighbourhood Policy must be strengthened and implemented,” both the Estonian and Finnish foreign ministers stressed.
Paet and Stubb emphasised that both contacts between individuals of the EU and its neighbouring countries and the countries themselves must be developed, so that countries would have the chance for stronger development. “We must contribute to the development of our neighbours by enlivening economic and trade relations between the EU and our neighbouring countries. One way to do this is by entering into useful trading agreements and developing transport links, to meet the objectives established,” said Paet and Stubb.
Estonia to Assume Presidency of Baltic Council
22 October - At a session of the Baltic Council in Riga, Foreign Minister Urmas Paet emphasised that Estonia’s main priorities during its presidency of the Baltic Council will be the development of a knowledge-based economy, increased energy security, and the establishment of energy and transport associations. Estonia will assume the presidency of the Baltic Council on 1 January 2011.
When speaking of energy security, the foreign minister emphasised the importance of the creation of an energy market as a part of a common Baltic-Nordic electricity market. “This would be contributed to considerably by the expansion of Nord Pool Spot to Latvia and Lithuania. It is also necessary to establish a common regulation for electricity imports from third countries,” Paet said. Work also needs to continue on the establishment of a common gas market and the diversification of gas suppliers.
According to Paet, it’s also important to focus on projects for regional transport links, above all, Via and Rail Baltica. “Transport connections and transit are a vital issue for Estonia, Latvia, and Lithuania,” Paet said.
As the foreign minister said, the development of a knowledge-based economy is necessary to enhance the competitiveness of the EU as a whole and therefore will definitely serve the interests of Estonia, Latvia, and Lithuania.
The foreign minister emphasised the importance of co-operation between Estonia, Latvia, and Lithuania for the development of the digital domestic market. “Digital solutions provide exceptional opportunities. I do believe that the absence of a EU digital market is one of the major factors holding back its competitiveness,” said Paet. “With Nordic countries, our region has the potential to become pioneers in shaping the fifth basic freedom – digital freedom – of the EU,” he added.
The promotion of a knowledge-based economy also assumes more active co-operation in the sphere of education and research. Foreign Minister Paet also discussed the issues of regional policy and environment.
Latvia currently holds the presidency of the Baltic Council.
Serbia’s EU Application Supported by Estonia
25 October - Foreign Minister Urmas Paet, who participated in the Foreign Affairs Council held in Luxembourg today, said that the EU foreign ministers decided to pass Serbia’s European Union accession application along to the European Commission so that it can begin its assessment.
“Estonia feels it is important for Serbia to continue its EU integration,” said Minister Paet. “Serbia has presented its accession application and Estonia supports the subsequent steps.” European Commission Commissioner for Enlargement and Neighbourhood Policy Stefan Füle confirmed that the Commission is prepared to move forward with the process.
Serbia presented its accession application in December 2009. As a part of the integration process, the European Union requested Serbia’s co-operation with the International Criminal Tribunal for the Former Yugoslavia. “The foreign ministers feel that co-operation with the Tribunal will continue to be of the utmost importance in Serbia’s integration with the European Union,” Paet added.
Estonia considers the strengthening of the European Neighbourhood Policy and support for the stable, democratic and economic development of the EU’s neighbourhood to be important. “Our Eastern neighbours should be offered opportunities to further integrate with the EU, including the advancement of free trade, visa facilitation and visa freedom,” Paet stressed.
Support for Georgia’s Integrity Must Become Self-Evident
26 October - At the meeting of the members of the European Union Friends of Georgia group and the Georgian foreign minister in Luxembourg, Foreign Minister Urmas Paet said that both EU and NATO member states must clearly observe Georgia’s territorial integrity and give practical weight to the non-recognition policy of Abkhazia and South Ossetia on a daily basis. Paet stated that the strong and visible presence of the European Union in Georgia is also necessary.
“Therefore the European Union Monitoring Mission in Georgia is currently irreplaceable for preventing new conflicts; the mission should also have access to the regions of Abkhazia and South Ossetia,” he added. The Estonian foreign minister stated that efforts must be made for the Organisation of Security and Co-operation in Europe (OSCE) to restore its representation in Georgia.
Estonia also confirmed its support for Georgia’s integration with the EU and NATO. “Georgia must continue making reforms. Negotiations for the Association Agreement between the European Union and Georgia have begun, and soon negotiations for a free trade agreement will begin as well,” said Paet. He noted that Estonia also supports rapid progress in bringing the visa facilitation for Georgian citizens travelling to the EU into effect.
The foreign ministers also discussed co-operation with Georgia in the framework of European Neighbourhood Policy and Eastern Partnership.
Ratification of OECD Accession Treaty Begins
27 October - Today Foreign Minister Urmas Paet will speak in the Riigikogu, where the first reading for the ratification of Estonia’s accession treaty to the Organisation for Economic Co-operation and Development (OECD) will begin.
Foreign Minister Urmas Paet stated that Estonia has already benefited greatly from the analyses and information it has received from the OECD. “As part of the accession process, many high-level overviews have been compiled, and we have also been able to share Estonia’s experiences in the international arena,” said Paet. The foreign minister added that OECD accession is confirmation of the success of Estonia’s economic policy. “Joining the organisation highlights the stability of our economic policy and economic environment. As an OECD member, we will have the opportunity to share our knowledge, for example in regards to carrying out economic reforms, and the opportunity to learn from others’ experiences will be open to us,” Paet explained. Estonia expressed interest in joining the OECD as early as 1996. In 2007 Estonia was invited to accession negotiations, which ended in the spring of this year when Estonia signed the accession treaty with the OECD. “We will become a full member of the organisation when the Riigikogu has ratified the treaty and, following that, we have presented our accession letter to be stored in the French Foreign Ministry,” said Paet. From 14 December 2010 until next fall, the OECD will be celebrating its 50th anniversary. “In order to participate in the anniversary events as a full member, it is important that our accession documents are deposited by 14 December,” said the foreign minister.
To join the OECD, it is necessary to ratify the Organisation for Economic Co-operation and Development’s convention of 14 December 1960, the agreement between the Government of the Republic of Estonia and the OECD on the rights, immunity and concessions given to the organisation, and the agreement on the conditions of the Republic of Estonia acceding to the Organisation for Economic Co-operation and Development’s convention.
Foreign Ministry Completes Draft Legislation for Participation in Civil Missions
28 October - The Foreign Ministry has completed the draft legislation for Estonia’s participation in civil missions, and today Foreign Minister Urmas Paet introduced the draft to the Riigikogu foreign affairs commission.
Paet stated that resolving most of today’s crises requires an international civil contribution. “In order to respond adequately to global crises, Estonia has developed its development co-operation activities as well as the capabilities of its civil experts. In order to continue developing these activities, the law must also grant guarantees to civil experts doing their work,” said Paet. “In addition, pursuant to the law the state will in the future have a better overview of civil experts’ readiness to go on missions and a clearer basis for participating in international missions. This is important in Estonia’s co-operation with its partners in the European Union, NATO, and other international organisations,” he added.
Estonia can participate in missions both by sending an expert to the location or through monetary donations to the mission. The draft legislation regulates the selection of experts, their dispatch to the mission and their return from the mission. The draft legislation for foreign missions also dictates the expert’s employment and service relationships during the mission and upon his or her return, the expert’s rights and responsibilities during the mission, and social guarantees, including in the case of loss of the capacity to work or loss of life.
The draft legislation for participation in civil missions will regulate Estonia’s participation in civil missions using a system that will create a legal basis and definition for Estonia’s participation in international civil missions.
Estonia Donates Computers, Study Supplies to Afghan Schools
26 October (BNS) - Estonia is supporting ten schools in Afghanistan with computers, study supplies and other things necessary for schoolwork. The Foreign Ministry allocated from its development co-operation budget 15 000 kroons (EUR 960) for each school in Afghanistan that has a twin school in Estonia, head of the Jaan Tõnisson Institute's Global Education Centre Johanna Helin said. "Most schools wanted to use the funds to procure computers, but they also need study supplies for geometry lessons, and one school will get a well with Estonian aid." Helin said the first supply consignment was handed over to the Aschiana Parwan school in Charikar, north of the capital Kabul.
"It's a small school for girls where 125 girls orphaned in war or from very poor families are studying. Because of their circumstances they've had to work and miss school and are not accepted by regular schools any more," the co-ordinator of the Estonian-Afghan twin school project, Maari Ross, said. In her words, the school helps girls catch up with regular school students by an express curriculum after which they have the opportunity to return to ordinary school.
The school received a computer and a sewing machine with Estonian support. "The sewing machine is especially important to this school because unlike ordinary school, students there also learn sewing and the hairdressing and beautician trades which are the main occupations for Afghan women to earn a living," Ross said. Students are looking forward to an Internet connection to get in touch with students at the twin school, the Tallinn Technical Secondary School, via Skype, she added. The Tallinn students sent the Afghan girls pictures of Estonia, letters, and bags they made themselves. "It's a very poor school even by Afghan standards. It lacks not only computers, but desks and chairs - students sit on the floor. We're trying to find extra funds for the school to get desks, chairs and school uniforms," Ross said.
The Jaan Tõnisson Institute launched in March 2009 a three-year project in Estonia aimed at establishing contacts between Estonian and Afghan schools and making Afghanistan known in this country. The project is financed by the European Commission and the Foreign Ministry from its humanitarian aid and development co-operation budget.
First Estonian Ambassador to Belarus Presents Credentials
25 October - Today the first Estonian ambassador to Belarus Jaak Lensment presented his credentials to President of Belarus Aleksandr Lukashenko.
Ambassador Jaak Lensment stated that for Estonia and Belarus, the areas of the most interest in bilateral relations are strengthening economic ties, including co-operation in the energy and transit sector, and the development of cultural relations. Ambassador Lensment noted that dialogue between the European Union and Belarus has also intensified. “The Eastern Partnership Programme remains a good opportunity for developing EU-Belarus relations and intensifying Belarusian co-operation with the European Union,” said Lensment.
Ambassador Lensment said that President Lukashenko recognised that contacts between Estonia and Belarus have grown and that active dialogue will certainly be facilitated by the appointment of an Estonian ambassador to Minsk. The president of Belarus stated that it is first and foremost essential to co-operate in the energy security sector, which is important both bilaterally and in the interest of the stability and well-being of the entire Baltic Sea region.
Ambassador Jaak Lensment was born on 22 March 1966. In 1991 he graduated from the philosophy department of the Belarusian State University. Jaak Lensment has been working for the Foreign Ministry since 1993, when he assumed a position in the Foreign Ministry’s political department. From 1993-1996 Lensment was a political diplomat at the Estonian Embassy in Kiev. From 1996-1997 he was a desk officer in the Ministry’s policy planning department. From 1997-2000 he worked as a political diplomat at the Estonian Embassy in Moscow, and from 2000-2003 Lensment was a desk officer and division director in the policy planning department. From 2003-2005 he worked as a counsellor in the Estonian Embassy in The Hague and from 2005-2009 as a counsellor in the Estonian Embassy in Vienna. Prior to assuming his current position, Jaak Lensment was the director of the third division of the Ministry’s first political department. Ambassador Jaak Lensment speaks Russian, German, and English.
Estonia Opens New Honorary Consulate in Canada
26 October - Minister of Social Affairs Hanno Pevkur and Estonian Chargé d’Affaires in Canada Riho Kruuv opened the Estonian Honorary Consulate in the city of Halifax in the province of Nova Scotia, Canada. The provincial government of Nova Scotia was represented at the opening by Minister of Finance Graham Steele. Estonia’s honorary consul for the province of Nova Scotia in Canada is John Olaf Soosaar.
With the opening of the honorary consulate, Estonia hopes to further intensify contacts between Estonia and Canada in the economic, tourism and cultural sectors. Estonia-Canada relations are made special by the fact that one of the biggest Estonian communities in the world is found in Canada. The community is socially active and has been remarkably successful in preserving Estonian culture outside of Estonia’s borders.
Honorary Consul John Olaf Soosaar, born in 1941, is a journalist and documentary film-maker of Estonian descent. Soosaar was born into a family of war refugees in Schwerin, Germany, and from there his family emigrated to Canada.
The consular region of the honorary consulate in Halifax is the province of Nova Scotia. The honorary consulate is located at the address 1526 Dresden Row, 7th floor, Halifax, Nova Scotia B3J 3K3, Canada. The honorary consulate can be reached at the phone number +1 902 421 1326 or +1 902 423 0484 and emails can be sent to the address soosaarjo@eastlink.ca.
Estonia to Become Observer in International Francophone Organisation
23 October - The Estonian Ministry for Education and Research said that on Saturday Estonia would acquire observer status in the International Francophone Organisation. A spokesman for the ministry said that Estonia would get observer status at the summit of the International Francophone Organisation in Montreux, Switzerland. The meeting is devoted to the 40th anniversary of the organisation.
Estonia will be represented at the meeting by Education and Research Minister Tõnis Lukas, according to whom Estonia shares the values of the organisation to ensure democracy, human rights, sustainable development and furthering education and research. "Being a small country with about one million native speakers, we very well understand the need for linguistic and cultural diversity and the importance of cultural contacts. It is much more useful and pleasant to hold conferences than to wage war," he said.
Lukas said that there was a growing need for good command of French in Estonia and membership in the EU had deepened it. He said that public servants' command of French, the study of which the Francophone Organisation had been supporting since 1998, would significantly contribute to Estonia's successful presidency of the EU in 2018.
The Francophone Organisation of 70 member countries stands for the protection of French-medium culture and is making its contribution to settling international problems.
DOMESTIC NEWS
Estonian Government Debt Smallest in EU
22 October (BNS) - At the end of 2009 Estonia had the smallest government debt - 7.2% of gross domestic product - among European Union member states, the government deficit and debt figures for 26 EU countries published by the bloc's statistics agency Eurostat on Friday show.
The next lowest ratios of government debt to GDP were recorded in Luxembourg (14.5%) and Bulgaria (14.7%). In Lithuania the government debt was 29.5% of GDP.
In terms of government deficit, Estonia ranked third with a shortfall of 1.7% of GDP. The lowest deficits were recorded in Luxembourg and Sweden at respectively 0.7% and 0.9%. Estonia's Baltic neighbours Latvia and Lithuania were among countries with largest deficits - Latvia's deficit amounted to 10.2% and Lithuania's 9.2% of GDP last year.
The statistics released on Friday do not include figures for Greece, which will be published in mid-November.
European Voice Nominates Kallas, Ansip as Candidates for European of the Year
22 October (BNS) - The Brussels newspaper European Voice has nominated Estonia's Siim Kallas and Andrus Ansip as candidates for the title of European of the Year.
Kallas, transport commissioner of the European Commission, is one of those nominated in the commissioner category and Prime Minister Andrus Ansip in the statesman category. Both are candidates in the European of the Year category.
In addition to Kallas, Kristalina Georgieva, the commissioner of international co-operation, humanitarian assistance and crisis regulation, Cecilia Malmström, commissioner for internal affairs and Viviane Reding, the commissioner of legal issues, fundamental rights and citizenship will also run for the title of commissioner of the year. The candidates in the same category with Ansip are Swedish Finance Minister Anders Borg, British Prime Minister David Cameron and Deputy Prime Minister Nick Clegg, German Defence Minister Karl-Theodor zu Guttenberg and Greek Finance Minister George Papaconstantinou.
Voting for the candidates takes place on the European Voice web site www.europeanvoice.com and the winners will be announced on 30 November.
Estonia in Ninth Place on Press Freedom Index
20 October - Estonia is in a tie with Ireland in places 9-10 in the Press Freedom Index 2010 published by the Paris-based organisation Reporters Without Borders (Reporters sans frontieres – RSF) on Wednesday and ranking 178 countries.
Last year, Estonia was in sixth place in the RSF scoreboard of nations with 0.5 points. This year the country was given two points. The bigger the number of points, the lower the country is ranked. Several countries share first place in the index again. This year it is Finland, Iceland, Netherlands, Norway, Sweden and Switzerland. They have all previously held the first place since the index was created in 2002. Austria follows in seventh place with 0.5 points and New Zealand in eighth place with 1.5 points, ahead of Estonia and Ireland that both got two points.
Places 11 to 13 went to Denmark, Japan and Lithuania, which received 2.5 points each. Belgium, Luxembourg and Malta were tied in places 14 to 16 with four points, Germany was 17th with 4.25 points, Australia 18th with 5.38 points, Britain 19th with six points, and the United States 20th with 6.75 points. Latvia is in a tie with Trinidad and Tobago in places 30-31, and 8.5 points, while Russia was given 49.9 points and 140th place in the table. At the bottom of the list was Eritrea with 105 points.
In recent years, RSF has drawn particular attention to the three countries that always occupied the last three positions – Eritrea, North Korea and Turkmenistan. This year, a bigger group of ten countries – marked by persecution of the media and a complete lack of news and information – are clumped together at the bottom. The press freedom situation keeps on deteriorating in these countries and it is getting harder to say which is worse than the other. RSF said it was worth noting that, for the first time since the start of the index in 2002, Cuba was not one of the 10 last countries this time.
DEFENCE NEWS
Brig. Gen. Cowan Recognises Estonian Soldiers’ Professionalism
22 October (BNS) - Brigadier General James Cowan, former head of NATO's Helmand Command in Afghanistan, who is now on a visit to Estonia, recognised Estonian soldiers' high professionalism. Brig. Gen. Cowan said that he had had the great privilege of fighting together with Estonian soldiers in Afghanistan. "The Estonian soldiers' big plusses are high professionalism, a sense of duty, and flexibility to carry out very different operations. Soldiers of the United Kingdom and Estonia fit very well to serve together: in addition to their sense of duty, loyalty and high professionalism, they both have a good sense of humour," the brigadier general said.
During his visit to Estonia, Brig. Gen. Cowan, former commander of the 11th Infantry Brigade of the United Kingdom, who headed NATO's Helmand Command in Afghanistan, met with commander of the Defence Forces Brig. Gen. Neeme Väli, shared experience of the Afghanistan operation with listeners at the Baltic Defence College, and met with veterans of Estcoy-8 and Estcoy-90. Brig. Gen. James Cowan served as commander of the British 11th Light Infantry Brigade, which operated in the Helmand Province of Afghanistan from October 2009 until April 2010.
Brig. Gen. Cowan wished to get the information in Estonia about his great-uncle, Walter Henry Cowan, who was the commander of the British squadron that arrived in the Baltic Sea during the Estonian War of Independence in 1919 to safeguard the independence of Estonia and Latvia. Arrival of the British squadron in the roads of Tallinn significantly changed the balance of forces in the Baltic Sea.
"I am also connected with Estonia through my great-uncle's contribution to the establishment of Estonia's independence," Brig. Gen. Cowan said. "Admiral Cowan managed to mobilise in critical circumstances the will of different people, which is a good example also today, when Estonian and UK soldiers together are building a more secure environment in Afghanistan."
Lawmakers Give Green Light to Participation in EU Anti-Piracy Operation
27 October (BNS) - The parliament on Wednesday gave the Estonian Defence Forces a mandate to take part in the European Union's anti-piracy mission starting in November. The decision that was passed with 65 votes in the 101-member chamber allows Estonia to assign up to 15 defence personnel to the EU operation Atalanta and also to NATO's Mediterranean operation Active Endeavour from 1 November 2010 till the end of 2011. The Ministry of Defence said Estonia's participation in the EU's most important operation of the moment will significantly improve the country's visibility in the area of common security and defence policy and enable the defence forces to acquire new experience.
The purpose of Operation Atalanta is to protect ships transporting food aid to Somalia and other ships moving in the Gulf of Aden and near the Somali coast. Estonia plans to take part in the operation with a ship protection team of about 10 personnel, to which some liaison officers may be added. The first rotation of the team is expected to be based on a German naval vessel from where it would be deployed to merchant ships when necessary. Occupying ships suspected of piracy will not be among its tasks.
As several of the countries taking part in Operation Atalanta join for a while the NATO-led operation Active Endeavour when heading to the Somali coast or returning from there, a mandate for that was also given to the Estonian personnel. The Estonian team should take part in Active Endeavour in spring 2011 when stationed on board the German navy ship returning from the operation area.
The goal of the maritime operation in the Mediterranean is to strengthen control over ship traffic, prevent the proliferation of weapons of mass destruction and increase the safety of shipping.
The vessels taking part in the operation monitor the Mediterranean area to detect terror threats and escort civilian vessels through the Bay of Gibraltar. The Ministry of Defence said 14.6 million kroons (EUR 0.93 mln) has been set apart for mission-related expenses this year and the next including procurement of the necessary equipment.
Estonia to Get MRAP Armoured Vehicles From USA
21 October (BNS) - The Estonian Defence Forces will get Mine Resistant Ambush Protected (MRAP) armoured vehicles from the United States that offer better protection against roadside bombs. Estonia will receive six units of the MaxxPro armoured vehicle.
Capt. Raul Järviste, head of the technical service at the logistics department of the General Staff, said the vehicles were waiting for shipment to Afghanistan. The estimated delivery time is December and the Estonian infantry unit to serve in Afghanistan then, ESTCOY-11, will be able to take them into use in January 2011.
The ministry's chief spokesman, Lt. Col. Peeter Tali, said the terms under which the vehicles would be used were not clear yet. The military's chief of staff, Brig. Gen. Neeme Väli, has previously told BNS that different options are being discussed, including lease, rent, and offering them for use by allies.
A special feature of the armoured vehicles is their V-shaped plated underside that is designed to direct the blast and fragments away from the machine.
Brig. Gen. Väli has said that such vehicles can be used at the head of a convoy of vehicles so that if an explosive device is hit the vehicle affected would be the one specially designed to minimise the harmful effects.
In addition, this year Estonian troops serving in Afghanistan will also get Sisu XA-188 armoured vehicles that the country bought from the Netherlands, which according to Järviste offer two times greater protection against land mines than the Sisu XA-180EST vehicles being used by the troops now.
ECONOMIC NEWS
Exports Jump 37 Percent on Year in August
25 October (BNS) - Estonia's exports grew by 37% and imports by 34% in August compared with August 2009, measured in current prices, Statistics Estonia said on Monday. Exports to Sweden increased by 67% and imports from Sweden doubled.
The value of exports of goods from Estonia amounted to 11.2 billion kroons (EUR 713 mln) and of imports to Estonia to 12.2 billion kroons (EUR 781 mln). Trade deficit amounted to one billion kroons or 67 million euros, increasing somewhat compared to August 2009.
In August the main countries of destination for Estonian exports were Finland, which accounted for 17% of Estonia’s total exports, Sweden, 16%, and Russia, 12%. Compared to August 2009, exports to Sweden increased the most, by 67%, to reach 1.8 billion kroons or 112 million euros. Electrical equipment, wood, wood products and furniture were the main categories of exports to Sweden.
The main countries from where goods were imported to Estonia were Finland, which accounted for 16% of Estonia's total imports, and Germany and Sweden, with 12% each. Mineral fuels and electrical equipment were mainly imported from Finland. Electrical equipment, vehicles and vehicle parts were mainly imported from Sweden.
Machinery and equipment accounted for 23% of total exports in August, mineral products for 13% and agricultural products and food preparations for 10%. Compared to August 2009, exports of machinery and equipment increased by 71%, exports of wood and wood products by 58% and exports of agricultural products and food by 45%.
Machinery and equipment likewise was the top category of imports, making up 24% of Estonia's total imports. Mineral products made up 18% and agricultural products and food products 12% of total imports. Compared to August 2009, arrivals of machinery and equipment increased by 90% and imports of metals and metal products also grew significantly.
During the eight months from January to August 2010, the volume of exports of goods from Estonia grew 26% and of imports to Estonia 21% compared to the same period of the previous year. According to Eurostat, both exports and imports of goods of the EU as a whole increased by 22% during that period.
Nordea Earns 21.5 Mln EUR Profit in Estonia in Nine Months
27 October (BNS) - Nordea Eesti earned 335.6 million kroons (EUR 21.5 mln) of net profit in nine months, more than threefold the sum it earned in the same period last year. The total revenue of Nordea Eesti, a company in the Nordea financial group, grew by 30% during the nine months, totalling 827 million kroons.
The loan losses in the nine-month period fell from last year's 272 million kroons to 179 million kroons in the same period this year.
"Growth of Nordea's profit by several times was due both to stable growth in revenues as well as contraction in loan losses, and in the stabilisation of the economy growth in Nordea clients' activity in using our products and services has clearly been seen," CEO of Nordea Eesti Vahur Kraft said. He added that in terms of its assets Nordea was among the three biggest banks in Estonia.
The sum total of Nordea Eesti assets grew 8% compared with the same period last year and added up to 48.4 million kroons as of the end of September. The loan portfolio of the bank amounted to 43 billion kroons as of the end of September, growing by 4.3% on year.
Companies' loan and leasing portfolio of Nordea Eesti amounted to 26 billion kroons as of the end of September, up 3% compared with the same years. The private persons' loan and leasing portfolio grew by 4% on year and amounted to 14.7 billion kroons as of the end of September.
As of September Nordea Eesti had 145 488 clients, 22 offices, 100 ATMs, and 531 employees. As of the end of the quarter the bank had issued 84 908 bank cards and had 91 386 internet banking clients.
Government Appropriation for Tallinn Airport Fosters Development of Air Connections
22 October (BNS) - The Estonian government's appropriation for the Tallinn airport wiped out the Latvian carrier Airbaltic's competition advantage in Estonia, European Transport Commissioner Siim Kallas said. By making an investment in the Tallinn airport, the Estonian government has as good as erased Airbaltic's competition advantage, Kallas told BNS on Friday, acknowledging the government's efforts to develop the capital city's air connections.
"Establishment of new air services between Tallinn and other destinations has to be fostered," Kallas said at a news briefing here. "Improvement of air connections is good for Estonia." In his words, many people's decisions are influenced by whether direct flights to some point, for example, Tallinn or Tartu, are available or not.
Starting next year the security and rescue expenses of the airport operator Tallinna Lennujaam will be covered from the state budget. The minister of economy and communications, Juhan Parts, earlier explained that the state will shoulder the airport's security and rescue costs which is allowed by European regulations. The operator so far met such outlays from revenue.
The Ministry of Economy and Communications said Tallinna Lennujaam will get 56 million kroons (EUR 3.6 mln) for improving airport security and increasing international flight frequency.
Belarus Oil Imports From Venezuela Going Through Muuga Port
25 October (BNS) - A little more than half a million tons of crude oil from Venezuela has been unloaded at the Muuga port just outside the Estonian capital Tallinn in recent months for shipment to Belarus by rail, Äripaev reported.
BNS reported in July about the arrival of the first tanker with Venezuelan oil at Muuga. Äripaev observed that ports in Latvia, Lithuania and Ukraine are competing with Muuga for the Belarus import shipments. Only facilities in Odessa, Ukraine, which have accepted more than 700 000 tons so far, are capable of competing with Muuga.
"The reason why Belarus chose Muuga port for its oil transit is the immediate readiness of the infrastructure, terminal and railway of the Muuga port for the provision of such service," said Port of Tallinn Board Chairman Ain Kaljurand.
In recent years transit of liquid fuels via Muuga has amounted to 18-20 million tons annually, Äripaev said. Venezuelan oil has been moving via the terminal formerly owned by Eurodek Synergy OU, which was acquired by Mercuria Energy Asset Management B.V. in December last year and now bears the name Vesta.
Estonian Air’s Passenger Numbers Up 12.3 Percent on Year in September
25 October (BNS) - Estonian Air carried 57 398 passengers in September, 12.3% more than during the same month in 2009. Of the passengers, 52 242 flew on regular flights. The number of passengers on regular flights increased by 11.6% and on charter flights by 19.0% year on year. The number of passengers moved up for the fifth month in a row, the airline said on Monday.
In the first nine months of the year Estonian Air carried 440 669 passengers, of them 397 753 on regular flights. The total number of passengers in the nine months remained on the level of last year, whereas on regular flights it decreased by 0.8%.
"The nine-month result was influenced by a decrease in passenger numbers in the first four months of the year. Starting from May the number of passengers has been increasing steadily and the highest rate of growth was achieved in September this year,” said Rauno Parras, vice president of Estonian Air.
Swedbank Ranked as Most Valuable Company in Estonia
21 October (BNS) - The investment bank Gild Corporate Finance has ranked Swedbank as the most valuable company in Estonia ahead of the national power utility Eesti Energia and telecoms company Eesti Telekom.
Gild ranked 100 largest Estonian companies on the basis of their estimated market value as of the beginning of this year, putting Swedbank's value at 22.6 billion kroons (EUR 1.44 b), Eesti Energia's at 18.6 billion and Eesti Telekom's at 12.8 billion kroons.
The Gild scoreboard has reached its fifth edition. Last year's list had Eesti Energia at the top, followed by Swedbank.
SEB bank, port operator Tallinna Sadam, shipper Tallink Grupp, industrial group BLRT, telecoms company Elisa Eesti, security services provider G4S Baltics and water company Tallinna Vesi rounded out the top 10.
Gild said the purpose of the scoreboard is to provide a current evaluation of the worth of Estonia's largest companies, on the one hand, and track developments in the Estonian economy through changes in rankings and values, on the other.
Estonian Power Transmission System Operator to Borrow 25 Mln EUR from NIB for Second Underwater Cable
20 October (BNS) - The Estonian power transmission system operator Elering will borrow 25 million euros from the Nordic Investment Bank for the construction of Estlink2, a second underwater power cable between Estonia and Finland. Elering and NIB will sign the loan contract on Wednesday, the grid operator said.
According to the Estonian electricity supply development plan, Elering has to invest around seven billion kroons (EUR 447.3 mln) in securing supply reliability over the 2010-2014 period of which the buyout of the Estlink1 cable and the construction of Estlink2 and standby reserve capacities make up a substantial part. The company will have to borrow a total of 2.7 billion kroons in 2011-2013 to finance the investments. The loan contract with NIB runs for 15 years.
The Estlink2 cable will increase the transmission capacities between Estonia and Nordic countries to nearly 1,000 megawatt and integrate the Baltic electricity market to a significantly greater extent into the Nordic market. It is planned for the link to go into operation at the beginning of 2014.
Estlink2 consists of an around 145 kilometers long underwater cable, 12-kilometer onshore cable in Estonia, and about 12 kilometers of overhead lines in Finland, as well as converter stations at Püssi in Estonia and Anttila in Finland.
Elering and Fingrid will put up half of the necessary funding each. The European Union has decided to allocate up to 100 million euros to the large project. The size of Elering's investment is about 2.4 billion kroons.
Orkla Group Companies Market Products of Kalev Chocolate Factory
28 October (BNS) - Several companies of the Norwegian Orkla group market products of the Estonian Kalev Chocolate Factory in the Baltic countries, Russia and the Nordic countries.
Kaido Kaare, CEO of Kalev Chocolate Factory, told BNS that in order to increase export volumes Kalev had started to co-operate with several companies of the Orkla Group. "Our most important export target countries are the Baltic countries, Russia and the Nordic countries."
Kaare said that Kalev had launched co-operation with the Finnish Panda sweetmeats producer. "In the framework of that co-operation, Panda markets Kalev's products in Finland and Kalev respectively Panda's products in Estonia."
In the St. Petersburg area of Russia, Kalev launched co-operation with Krupskaya, a company in the Orkla group. "Via Krupskaya's contacts Kalev has wider opportunities to get its products into the assortment of big Russian retail chains.”
He said that Kalev had established its first contacts also with K'oKo', a company of the Orkla group operating in the Czech Republic.
From November 1 Spilva, a fruits and vegetable processor in the Orkla Group, will take over Kalev products' distribution, sale and marketing operations in Latvia.
Orkla acquired Kalev Chocolate Factory this May.
CULTURAL NEWS
Russian President Decorates Estonian Conductor
22 October (BNS) - Russian President Dmitri Medvedev has decorated the Estonian conductor Eri Klas with the Order of Friendship for his major contribution in developing cultural contacts with Russia. On 15 October the Russian president signed a decree, decorating four foreign cultural figures with the Order of Friendship. One of the recipients of the order is chief conductor or Moscow's Novaya Opera and artistic director of Tallinn Philharmonic and the St Bridget's Festival, a spokesperson for Tallinn Philharmonic said.
Eri Klas has been connected with Moscow's Novaya Opera as conductor since 2003, and has been its chief conductor since 2006. Klas has also been the artistic director of the Estonian National Opera and its chief conductor in the years 1975-1994. Since 2002 Eri Klas has been artistic director of Tallinn Philharmonic and one of the most important summer cultural events in Tallinn, St Bridget's Festival, has been born of his idea. Opera and ballet theatres from Russia have been guests at that festival, and Eri Klas's experience and connections have contributed to the presentation of many Estonian musicians and music in Moscow and St. Petersburg.
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