Estonia and Sweden

Bilateral relations

The Kingdom of Sweden re-recognized the Republic of Estonia on 27 August 1991and was the first country to appoint its ambassador to Estonia. Swedish Ambassador Lars Arne Grundberg commenced his assignment in Tallinn on 29 August 1991. Sweden's current ambassador, Jan Palmstierna, presented his credential to the President of the Republic on 2 September 2008. Since 7 April 2011 the Estonian Ambassador to Sweden is Jaak Jõerüüt.

Estonia also has five honorary consuls in Sweden: Lars-Åke Brännström in Karlstad, Lars Johan Söderström in Malmö, Lars Werner in Karlskrona, Harriet Lagebo Eskilstuna, and Lars-Eric Boreström in Gothenburg. Sweden has two honorary consuls in Estonia – Ahti Puur in Narva and Madis Kanarbik in Tartu.

Bilateral relations

Estonian-Swedish bilateral relations have traditionally been very good and close in the areas of economic affairs, defence and culture. Openness, mutual understanding, trust and goodwill characterise these relations.

As early as July of 1990 Sweden had already started giving state aid to various sectors in Estonia—a total of 14.2% of the aid received in Estonia. Sweden was also one of Estonia’s biggest supporters in its integration process with the EU. A significant dimension was added to the bilateral relations in the year 2000, which was named as the year of the Baltic countries. The main objective of this initiative was to introduce the Baltic countries to the European Union and to inform the public in the three Baltic countries of European Union-related matters. Development co-operation projects with Sweden have primarily taken place through the projects of the Swedish International Development Agency (SIDA), the Council of the Baltic Sea States, or the EU. So far the focus has mainly been on new democracies like Georgia, Ukraine, Moldova, and Armenia.

Defence co-operation between the two countries has been good in the areas of counselling, logistics, training, and the environment. An arms purchase agreement that outlines the co-operation format and procedures and foresees the creation of a working group was signed on 10 August 2010. For each concrete joint procurement, a separate joint project agreement will be signed. Joint procurements will also improve the ability of Estonia and Swedish Defence Force members to work together, as in the future they will be using more and more of the same kind of equipment.

Close co-operation is also conducted in the framework of the European Union’s Common Security and Defence Policy (ESDP). Sweden is the leading nation of the Nordic Battle Group (whose members are Sweden, Finland, Estonia, Norway, and Ireland). Sweden has also invited Estonia, Finland and Norway to participate in the second Nordic Battle Group, which should achieve battle-readiness in the first half of 2011. Estonia plans to contribute 50 Defence Forces members.

As nations located on the Baltic Sea, Estonia and Sweden also co-operate in the environmental protection and rescue sectors. A general security agreement for the protection of classified information, a co-operation agreement for emergency prevention, preparedness and response, and a sea and air search and rescue (SAR) co-operation agreement have been concluded between the two countries.

Visits

In April 1992, King Carl XVI Gustaf of Sweden and Queen Silvia visited Estonia. This was the first royal visit to the restored Republic of Estonia. In June 1995, Princess Lilian visited Estonia. In May 2002, King Carl XVI Gustaf of Sweden and Queen Silvia paid a private visit to Estonia.

Agreements

After accession to the European Union, Estonia’s free trade agreements with EU member states were terminated. The economic relations are governed by the regulations of the EU's internal market.

All the important bilateral economic agreements have been signed:

• Environment-related Co-operation Agreement (came into force 30.03.92);
• Agreement on the Promotion and Mutual Protection of Investments (came into force 20.05.92);
• Agreement on the Organizing of International Highway Transportation of Passengers and Goods (came into force 30.07.92);
• Agreement on Mutual Assistance in Customs Matters (came into force 30.10.93);
• Agreement on Rendering Medical Aid to Temporary Visitors (came into force 01.11.93);
• Aviation Agreement (came into force 30.11.93);
• Convention on the Avoidance of Double Taxation of Income and Capital and on the Prevention of Tax Evasion (came into force 31.12.93);
• Agreement on the Abolition of Visa Requirements (came into force 01.05.97)
• Co-operation agreement in the field of maritime and air search and rescue (came into force 06.03.2007).

Economic relations

TRADE

From the Estonian side, Sweden is still among the most important trade partners. In 2011 Sweden was Estonia’s second trade partner after Finland, and in exports Sweden actually surpassed Finland for the first time and became our first export partner. The volume of Sweden-Estonia trade has seen stable growth after the economic crisis years, with 13.2% of Estonia’s total trade in 2010 and 13% in 2011.

The trade balance is positive for Estonia, since in recent years export to Sweden has grown faster than import. In 2011 trade turnover rose to 3.2 billion euros and the trade surplus was 0.545 billion euros.

In the period from 1995-2010, Estonia’s export with Sweden rose from 143.8 million euros to 1.37 billion euros. In 2011 export with Sweden grew by 0.5 billion euros, or 38%, and Sweden became the number one target market for Estonia’s exports with a share of 15.6% (over Finland with 15% and Russia with 11%). The main articles of export were electrical appliances, timber, wood products, and furniture.

In the period from 1995-2010, Estonia’s import from Sweden grew from 160.7 million euros to 1 billion euros. In 2011 Sweden was in third place among Estonia’s import partners (after Finland and Latvia) with 10.6% of Estonia’s total imports. The volume of imports totalled 1.336 billion euros and annual growth was 32%. The main articles of imp

Estonian – Swedish trade 2007-2012 (in billions of EUR)

Main articles of export in 2012 (percentage of imports):

• Machinery and equipment– 53.1%
• Mineral products – 9.8%
• Wood and wood products– 8.5%
• Metals and metal products – 4.7%
• Transportation vehicles – 4.4%

Main articles of import in 2012 (percentage of imports):

• Machinery and equipment– 51.7%
• Transportation vehicles– 14.8%
• Metals and metal products– 8.5%

All economic figures originate from the Statistical Office of Estonia

INVESTMENTS

Over the last 20 years, Sweden has been Estonia’s greatest foreign investor. According to Bank of Estonia data, at the end of 2012 the volume of Swedish investments in Estonia reached 3.94 billion euros, which is 27.6% of all foreign investments made in Estonia. This was largely thanks to large investments by Swedish banks (Swedbank and SEB). In addition to the banks, there are also large manufacturing enterprises like Ericsson and ABB to thank for Swedish investments, although there are also many smaller investments in a great variety of sectors. At the beginning of 2013 the Estonian Business Register showed over 1500 enterprises with Swedish participation registered in Estonia. The companies with the greatest Swedish participation in Estonia are AS Eesti Telekom, AS Kunda Nordic Cement, Arco Vara AS, AS If Eesti Insurance, Rimi Eesti Food AS, AS Norma, and AS Põltsamaa Felix. Swedish investors are drawn to Estonia first and foremost for its qualified, motivated and productive work force and an economic environment that is flexible and open to innovation and change. After accession to the European Union, the possibility of access to European Union funds has also made Estonia more attractive.

Sweden holds a modest position among destinations for Estonia’s direct investments, although a rather big jump was seen last year. While at the end of 2010 Estonian direct investments totalled 25 million euros, as of the end of 2012 the total was 40.7 million euros, which made up just 0.9% of all investments abroad.

TOURISM

Estonia is a fairly attractive destination for Swedish tourists thanks to proximity, historical and cultural ties, nature, and quality spa services. Most tourists use maritime transport to get to Estonia, though in recent years the selection of flights from eastern Sweden to Estonia has also expanded. In terms of the number of foreign tourist coming into Estonia, the Swedish rank in fourth place after the Finns, Latvians, and Russians.

While in 2008 Bank of Estonia data showed that around 86 000 Swedish tourists visited Estonia, in 2009 the number was 77 500, in 2010 81 200, and in 2011 over 86 200. In 2012 tourists from Sweden to Estonia numbered 78 412.

Cultural relations

Cultural ties between Estonia and Sweden have been close throughout the years. Among the most important events in 2012, one that bears mentioning is the Estonian Philharmonic Chamber Choir’s participation in a music festival at the Ulriksdals Slottsteater Confidencen in Stockholm, conducted by Tõnu Kaljuste. The festival’s motto was “Reflections of the musical past in the present” and the festival was dedicated to the music of Monteverdi. The concert was well-received by Swedish cultural journalists.

The Estonian Embassy in Stockholm is continuing its close co-operation with Swedish Radio and the Berwaldhallen in organising the Baltic Sea festival. Last year the Baltic Youth Philharmonic Orchestra conducted by Kristjan Järvi performed at the festival.

The Varius Theatre, which has had cultural contacts with Sweden since 1989, visited Gothenburg again in 2012. This time the theatre chose, as a celebration of its 25^th anniversary, to perform the production “Lõbusad estoonlased”, which is about legendary figures in Estonian theatre like Pinna, Hansen and Sällik. The performance in Gothenburg was met with thunderous applause, requests for an encore, and the public rising to their feet at the end.

On 15 September 2012 memorial plaques from the Port of Slite in Gotland erected by grateful Estonian and Latvian refugees who had fled by boat were re-opened. Their new place is close to the Slite Maritime Museum, in the same spot where one of the few preserved refugee boats sits. The first memorial plaques were put up to thank the helpful residents of Gotland, who received thousands of refugees from Estonia and Latvia on stormy autumn nights in 1944 after the end of World War II. Initially the plaques were positioned on the pier in the Port of Slite, but they had to be moved from there due to the construction of a new pier.

Local Estonian organisations like the Swedish Estonian Society and the Estetic Club do a good job of introducing Estonian culture. Estetic has brought Singer-Vinger and Ott Lepland to perform in Sweden, and film club nights for introducing Estonian cinema have also continued.

In 2011 a great deal of attention was given in Sweden to celebrating the 20th anniversary of the restoration of independence in Estonia, Latvia and Lithuania. The year 2011 was even named the Baltic Year in Sweden, which culminated in various large-scale commemorative ceremonies in August. Many Estonian state figures participated in these events, including Riigikogu Speaker Ene Ergma, Prime Minister Andrus Ansip, Minister of Defence Mart Laar, Minister of Culture Rein Lang, former president Arnold Rüütel, and others.

Estonians in Sweden

Unlike the coastal Swedes, who lived on the Estonian islands and on the west coast for centuries, the significant Estonian communities in Sweden were established in the 20th century. However, Estonians have travelled throughout Sweden and taken up residence there for centuries.

The 20th century cardinally changed this situation. While pre-World War II only a few hundred Estonians lived in Sweden, Estonians fleeing the war in 1943-1944 swelled the number to some 20 000 after the war. With the birth of new generations in the 1950s and 1960s this figure rose to 30 000. About 7 000 coastal Swedes fled from Estonia to Sweden.

In the spring of 2004, the 60th anniversary of the arrival of thousands of refugees from Estonia to the Swedish coast was marked with several events. Among others, the commemorative monument “Departure and Homecoming” dedicated to the refugees was opened on Dalarö beach in the Haninge commune and an exhibit on the great wave of emigration was displayed in the Museum of Occupations in Tallinn. The exhibit was opened by Swedish Minister for Policy Coordination (now Finance Minister) Pär Nuder, who is also the descendant of Estonian refugees in Sweden.

Due to a lack of descendants, graves being neglected, and other such reasons, an important topic during the past few years has been the reinterment of famous Estonians that died in Sweden in Estonian soil. At the end of the summer in 2008 the remains of Jüri Uluots were buried in Kirbla in Lääne County; others that returned home in 2008 were former minister of education Jaan Lattik and his wife, who were reburied in Viljandi. In August 2006, the remains of former head of state August Rei and his wife Therese Rei were brought back to Estonia and given a ceremonial burial in Tallinn’s Metsakalmistu Cemetery. In August of 2002, respected diplomat and a prime minister of the exile government Aleksander Warma and his wife were brought from Sweden and reinterred in the Metsakalmistu Cemetery.

Presently, more than 10 000 Estonians live in Sweden, and most of them have gathered in the larger cities or their suburban neighbourhoods – 4 000 in Stockholm, 2 000 in Gothenburg.

From the post-war years onward, the Estonian community successfully integrated into the Swedish community. The Estonian community also worked actively to preserve its national heritage and to raise awareness about Estonia through its many associations, societies and unions (the Estonian Committee, the Union of Estonians in Sweden, the Estonian Culture Society etc). During the peak period, some 400-500 Estonian organisations had been active in Sweden. Today approximately 100 are still functioning. Also, many Estonian language periodicals are published – as the newspaper Eesti Päevaleht and the journal Rahvuslik Kontakt. In Stockholm, there is an Estonian nursery school and an Estonian elementary school (grades 1-9) with about 180 students. In Gothenburg, Estonians are planning to re-open its school alongside the Estonian nursery school.

Estonian Houses function as important centres for preserving and developing the Estonian heritage in Sweden.

Estonians' organisations in Sweden

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