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Estonian Review 4-10 February 2009
13.02.2009
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Estonia Supports Extending Mandate of Georgia Monitoring Missions
10 February (BNS) - Estonia supports extending the mandate of the monitoring mission active in Georgia, Estonian Foreign Minister Urmas Paet said in connection with the detention of two OSCE monitors by the authorities of separatist South Ossetia.
"The incident related to the detention of OSCE monitors in South Ossetia once again shows the seriousness of the situation in the region and the need for international presence," Paet said.
Therefore Estonia supports intensification of the activity of the European Union Monitoring Mission (EUMM Georgia) in Georgia as well as the extension of the OSCE and UN missions, for whom free movement and access to the entire territory of Georgia must be ensured, the minister said.
Militiamen from Georgia's rebel South Ossetia region briefly detained two European ceasefire monitors Tuesday, highlighting the tensions that remain six months after the war between Russia and Georgia.
Tbilisi said South Ossetian forces had "kidnapped" the two observers from European security watchdog OSCE and accused Russia of continuing to violate a ceasefire in the region. Rebel officials, however, said the monitors had been briefly detained after crossing into South Ossetia and were quickly released.
Tbilisi has accused Russia of violating a European Union-brokered ceasefire agreement by refusing to allow foreign monitors access to South Ossetia and another rebel Georgian region, Abkhazia.
After the war in August 2008 Russia withdrew from much of Georgia in line with the ceasefire but maintained the presence of 7 600 Russian troops in South Ossetia and Abkhazia. Moscow has recognised both regions as independent states.
The OSCE has about two dozen military observers in Georgia but is in the process of pulling its monitors out after Russia objected to a plan to extend its mission.
An EU mission of 225 unarmed observers is also monitoring the ceasefire.
Top NATO Official Hails Estonia's Endeavours in Cyber Defence
10 February (BNS) - NATO Assistant Secretary General for Defence Investment Peter Flory described Estonia as a frontrunner for cyber defence in the alliance during a meeting with Estonian Defence Ministry Permanent Undersecretary Riho Terras.
Terras met with Flory as well as NATO Deputy Assistant Secretary General for Operations Lawrence G. Rossin in Brussels.
Flory hailed Estonia's activity in the field of cyber defence and described Estonia as one of the leading members of NATO in matters of cyber defence both technically and politically.
Also discussed during the meeting were matters of missile defence.
Flory and Terras found that this is an important topic for all of NATO which needs to be actively dealt with.
In the meeting of Terras and Rossin the future of the NATO training mission in Iraq, further development of the NATO Response Force, and the need to support the elections taking place in Afghanistan in August was talked about.
The parties stressed the importance of the training of Afghan police and of combating narcotics.
During his trip to Brussels, Terras also visited the Estonian mission to NATO and the EU.
Estonia Backs Iceland's Entry into EU
6 February (BNS) - Estonia supports the possible accession of Iceland to the European Union, Foreign Minister Urmas Paet says.
"Estonia has always been in favor of further enlargement of the EU, as it will increase the prosperity, competitiveness and security of all of Europe and thereby Estonia as well," Paet told BNS. "Estonia would gladly see Iceland as a member of the EU."
The new government of Iceland has indicated the country's wish to join the 27-nation bloc. Prime Minister Johanna Sigurdardottir said on Tuesday her center-left government plans to adopt a number of bills in the 10 weeks prior to the April 15 elections and amend the Constitution so as to be able to open accession talks with the EU immediately after the polls.
"In my opinion the best option is still to join the European Union and adopt the euro," she told a news conference.
Sigurdardottir's Social Democratic Alliance teamed up with the Left-Green Party to form a new minority coalition on Sunday. The Social Democrats favor EU entry while the Left-Greens are cautious but have said they could back a referendum on starting talks.
Estonian Foreign Affairs Committee Confirms Support for Georgia's Sovereignty
4 February (BNS) - A delegation of the foreign affairs committee of the Estonian Parliament (Riigikogu) on a visit to Georgia expressed once more its support for Georgia's sovereignty and territorial integrity.
At their meetings with chairman of the Georgian Parliament David Bakradze, heads of the committee for foreign affairs and of euro-integration and Secretary of the National Security Council Eka Tkeshelashvili, the MPs also underlined the need to ensure the opportunity for persons who were forced to leave occupied territories to return to their native lands. The committee also had meetings with representatives of the ministries of economic development and of foreign affairs, the opposition and the friendship group.
Sven Mikser, the Social Democrat chairman of the foreign affairs committee, said that Estonia has proceeded and will proceed from the principle that each country must be able to choose its security policy orientation and third countries must have no veto right over it.
"More than that, use of military aggression can not be tolerated as a means of satisfying foreign policy ambitions," he said, adding that it was Estonia's duty to continue to put pressure on the European Union and other international organisations so that the resolution of Georgia's problems would not be pushed into the background on their agendas.
During the meeting with Hansjorg Haber, head of the European Union Monitoring Mission, members of the committee underlined the need to continue the activity of the mission after September. Mikser said that continuation of the mission and increasing its competence was important, as the presence of observers has helped to considerably reduced the number of violent incidents. He said that Europe must put pressure on Russia in order to achieve access to the territories of occupied South Ossetia and Abkhazia.
A representation of the foreign affairs committee visited the city of Gori and the village of Ergnet, which suffered in the August war. Vladimer Vardzelashvili, governor of the Gori Region, gave the deputies an overview of the plight of the people who had come into a difficult situation and opportunities of the Georgian government to help them.
Estonian aid to Georgia for the improvement of Georgia's socio-economic situation and support in organising important reforms was underlined at the meeting. Estonia also reiterated its support for Georgia's movement in the direction of NATO and European Union membership.
In addition to Mikser, Marko Mihkelson from the Pro Patria and Res Publica Union, the Reformist Ivi Eenama, and the Centrist Vladimir Velman took part in the visit.
Estonian Police Sign Co-operation Programme with Rheinland-Pfalz
10 February (BNS) - Estonia's national police chief Raivo Kuut and the chief of the police of the German state of Rheinland-Pfalz Joachim Laux signed a co-operation programme in Tallinn that mainly deals with training.
Seminars and training events will take place both in Estonia and Germany. They include a seminar by the Rheinland-Pfalz rapid reaction force on the arrangement of their work and a joint seminar in Estonia on the fight against child pornography.
Five police cadets from Rheinland-Pfalz will be in Estonia from 23-27 March to acquaint themselves with the Estonian police system as part of their BA programme.
The commando units of Estonia and Rheinland-Pfalz will conduct a joint exercise in tactical shooting in Germany, and there will be individual visits by groups of officers to discuss cross-border police co-operation and the handling of crimes involving minors.
The police of Rheinland-Pfalz are keen to tap into Estonia's experiences in the fight against cyber crime and in monitoring the internet.
The police chief of Rheinland-Pfalz was quoted as saying that while his department has many partners in Europe, the kind of intense friendship that they have with Estonia is unique.
Estonian Ambassador to Azerbaijan Presents Credentials
6 February - Estonian Ambassador to Azerbaijan Aivo Orav presented his credentials to President of Azerbaijan Ilham Alijev.
In the discussion following the credential-presenting ceremony, Estonian Ambassador Aivo Orav and Azerbaijani President Ilham Alijev focused on energy security and bilateral relations.
Ambassador Aivo Orav emphasised the important role that Azerbaijan and the Caspian Sea region play in increasing the European Union's energy security. The recent Russia-Ukraine gas dispute showed how essential it is to diversify the European Union's energy suppliers and channels, said the ambassador. Azerbaijan's willingness to participate in implementing the Southern Corridor' projects - the Nabucco gas pipeline and the Odessa-Brody-Plock oil pipeline - is extremely important and very much appreciated, he added.
While talking about bilateral relations, Ambassador Orav and President Alijev expressed satisfaction over the steady development of relations, highlighting the recent official visit of Estonian President Toomas Hendrik Ilves to Baku. Another topic discussed at the meeting was opportunities to advance economic ties, taking into account the interest that Azerbaijani businesses showed during the business conference that took place during the Estonian president's visit. Azerbaijan has the interest of Estonian entrepreneurs as both an investment environment and a market, stated Ambassador Orav. In addition, the parties discussed improving the agreement base, in order to facilitate business activity between the two countries.
The Estonian ambassador resides in Ankara. Aivo Orav is also the Estonian ambassador to Turkey. Aivo Orav was born in 1965 in Pärnu. He graduated from the physics and chemistry department of Tartu University and completed the Estonian School of Diplomacy. Ambassador Orav has been working in the diplomatic field since 1992, when he came to work in the political department of the Foreign Ministry. From 1995-1998, Orav worked in the permanent representation to the Organisation for Security and Co-operation in Europe (OSCE) in Vienna. Following that, he was the director of the office of international organisations and security policy in the political department, until he was named ambassador to Poland in 2000. Starting in 2001, Orav was the ambassador to Bulgaria and Romania, residing in Warsaw. Before becoming the ambassador to Turkey, Aivo Orav worked as the political director of the Foreign Ministry.
DOMESTIC NEWS
Estonia Recognises 97 People with State Decorations
4 February - President Toomas Hendrik Ilves signed a resolution today conferring decorations on 97 citizens of the Republic of Estonia and foreigners in connection with Estonian Independence Day and in recognition of their services to Estonia.
On the eve of the 91st anniversary of the Republic of Estonia, our country is grateful and recognises people who have maintained, promoted and safeguarded Estonia's independence, President Ilves wrote in the foreword to the resolution.
We thank and recognise those whose actions have helped Estonia become smarter, greater, more successful and more caring, the head of state stressed.
The Order of the Cross of Terra Mariana First Class will be presented to European Commission President José Manuel Barroso in recognition of his contribution to the enlargement of the European Union and the successful integration of the member states into the European Commission, and to Danish Prime Minister Anders Fogh Rasmussen, who has been a resolute supporter of Estonia and the other Baltic countries during their accession to the European Union and NATO.
Other recipients include Olympic gold medal winner Gerd Kanter, who will receive the Order of the White Star First Class, Olympic silver medal winner Tõnu Endrekson, who will be given the Order of the White Star Second Class, and the creators of the documentary film The Singing Revolution James Tusty and Maureen Castle Tusty, who will receive the Order of the Cross of Terra Mariana Fourth Class.
The full list of recipients is available on the website of the President of the Republic, www.president.ee.
DEFENCE NEWS
Minister Wraps Up Defence Forces Mission in Iraq
7 February - Minister of Defence Jaak Aavisoo was in Baghdad to officially wind up the mission of the Estonian Defence Forces in Iraq.
Estonia will continue to contribute to the NATO Training Mission Iraq with three officers.
During the visit, Defence Minister Aaviksoo met with Iraqi Minister of Defence Abdul Qadir Mohammed Jassim Obeidi al-Mifarji; the Prime Minister's Security Adviser, Dr. Mowaffak Baqer al-Rubaie Rubaie; the Commander of the NATO Training Mission Iraq (NTM-I), Lieutenant General Frank G. Helmickand; and US Ambassador to Iraq Ryan Crocker.
"Everybody has benefited from Estonia's participation in the operation in Iraq - today Iraq is safer and more democratic than before. Estonia's reputation as a country has been enhanced and has helped promote the development of our own security, while the alliance with our NATO partners has grown stronger than ever. The gratitude expressed by the President, prime minister and defence minister of Iraq serves as honourable acknowledgement for both our Defence Forces members and the state of Estonia, said Jaak Aaviksoo.
Commander of the Air Force Brigade General Valeri Saar and the director of the Operations and Crisis Management Department of the Ministry of Defence Riho Rõngelep accompanied the minister of defence on his visit to Baghdad.
Aaviksoo: Cyber Defence Must Become a Part of Europe's Common Foreign and Security Policy
4 February - Minister of Defence Jaak Aaviksoo participated in a cyber defence workshop at the General Secretariat of the Council of the European Union in Brussels, where he stressed the need for joint European Union policy in fighting cyber threats.
At the cyber defence workshop, Aaviksoo stressed that the vulnerability of cyberspace is a global threat which requires global responses. Therefore the European Union should develop a joint vision and a readiness to respond to cyber threats.
"For national defence purposes, cyberspace represents, along with the mainland, sea, air and space, a possible area of combat where states must be prepared to defend themselves. Due to the boundless nature of cyberspace, it can only be possible as a result of co-operation between countries; countries outside the European Union must also be involved in this process, Minister Aaviksoo said.
As an alternative, Aaviksoo mentioned the conclusion of appropriate agreements between the European Union and third countries to ensure a more effective exchange of information on cyber defence issues while also improving co-operation against cybercrime.
According to Defence Minister Aaviksoo, it's highly likely that the number of large-scale cyber attacks launched against the information systems of countries will increase - and this also requires a more extensive need for co-operation between states to protect their critical information infrastructures. To this end, Aaviksoo also referred to the need to update common European Union laws, which would contribute to better protection of information systems critical for each state while helping to cope more efficiently with cyber threats.
The minister of defence also made a proposal for the establishment of a trans-European centre on cyber defence, which could be, for example, incorporated as a part of the European Network and Information Security Agency, ENISA, serving the objective of strengthening the protection of information systems in the European Union as a whole.
The cyber security workshop was organised as a result of co-operation between the General Secretariat of the Council of the European Union and the Ministry of Defence of the Republic of Estonia; the workshop was attended by individuals who shape the security politics of the European Union and NATO, top officials of the International Telecommunications Union, and experts of research institutions. The event was organised as a response to the European Union security strategy implementation report, completed at the end of 2008, which highlights cyber threats as a new security risk to be considered.
In April, another highly important meeting of the European Union ministers will take place in Tallinn, this time focusing on the development of infrastructure protection policy to protect trans-European information of a critical nature.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
President Ilves Meets with Leaders of Tallinn Stock Exchange
10 February - "In Estonia, a way out of the current economic recession is being sought. Therefore, Estonia requires a long-range view of the future, a vision of the steps that will bring us closer to achieving our goals," President Toomas Hendrik Ilves said today while visiting the Tallinn Stock Exchange and meeting with members of the management. "New ideas and innovative approaches are the solution. Our people are resourceful, but often the realisation of ideas can be hindered by a lack of enterprise or money. We should be bolder in coming out with new ideas and introducing them to others. In this way, by finding allies and partners, we can arrive at solutions," said the head of state. Andrus Alber, the chairman of the management board of the NASDAQ OMX Tallinn Stock Exchange, added, "The Stock Exchange and the Central Depository for Securities are continually developing new products and services for our companies and investors. The Tallinn Stock Exchange's participation in the NASDAQ OMX Group provides Estonia with knowledge and experiences from the world's largest markets. I hope that our entrepreneurs know how to profit from the advantages that this provides." President Ilves became acquainted with the Tallinn Stock Exchange's idea for an alternative market. First North, an alternative market of the NASDAQ OMX Tallinn Stock Exchange, operates simultaneously with the regulated markets in the Baltic countries. It was created specifically to cater to the needs of small- and mid-sized businesses. The alternative market provides good ideas and new financing opportunities for small businesses. It also provides investors with the opportunity to participate in the rapid development of future businesses.
"I believe that the creation of an alternative market is beneficial for the entire Estonian economy. It provides an opportunity for small companies to take in additional capital and to expand," noted the head of state.
Estonian Air Carries 1.5 Percent More Passengers in 2008
5 February (BNS) - Estonian Air carried 756 795 passengers during 2008, 1.5% more than in 2007, figures published by the carrier show.
In December, Estonian Air carried 39 249 passengers, including 36 602 on regular flights. The number of people travelling on the airline's regular flights in December decreased by 17.5% year on year. The total number of passengers on Estonian Air flights dropped by 20.3% in comparison with December 2007.
"In the first five months of 2008 the number of passengers grew 16.8%, but since last summer the economic recession in global and local markets and the drop in demand for air travel have slowed down the growth in passenger numbers. In the final months of the year the increase in passenger numbers turned into a decline and we forecast the same trend for the first months of 2009," said Andrus Aljas, President and CEO of Estonian Air.
In 2008 the market share of Estonian Air in regular flights at Tallinn Airport was 45.7%, an increase by 1.7 percentage points year on year. The total market share including regular and charter flights was 41.5%, which is 1.5 percentage points lower than a year ago.
In December the market share of Estonian Air in the regular flights segment at Tallinn Airport was 41% and in all flights 36%.
The fastest-growing destinations for Estonian Air in 2008 were Moscow with a 30% increase year on year, followed by Kiev and Stockholm with growth rates of 15% and 7% respectively.
Estonian Air is owned by SAS Group, the state of Estonia and the Estonian investment bank Cresco.
A Thousand Tickets to Estonia-Brazil Football Friendly Sold in Seven Hours
9 February (BNS) - There has been immense interest in tickets to the Estonia-Brazil football friendly that went on sale Monday and about 1 000 tickets were sold during the first seven hours, despite the hefty price tag of 96 and 160 euros, according to football executives in Tallinn.
The secretary general of the Estonian Football Association, Tõnu Sirel, said that people have well received both the 1 500 kroon (EUR 96) and 2 500 kroon (EUR 160) tickets.
"In addition to the free sale there's active booking going on via clubs," he said.
In all, 4 900 tickets to the match to be played in Tallinn on 12 August as the culmination of events marking the 100th anniversary of Estonian football were put up for sale in Estonia, Latvia and Lithuania.
"According to our information there's been no massive buying in Latvia and Lithuania. As we wish for Estonian fans to be able to buy the tickets first, we're monitoring sales abroad and will halt them if necessary," Sirel said.
Under an agreement concluded by the Estonian Football Association, five-time world champion Brazil will arrive in Tallinn in their best line-up.
Profit of Nordea Bank Up 15 Percent in 2008
10 February (BNS) - Nordea Pank Eesti, the Estonian bank of the Nordic financial group Nordea, made a profit of 357.3 million kroons (EUR 22.8 mln) last year, an increase of 15% from 2007.
Nordea's assets grew by 43% year on year to 45.8 billion kroons and the volume of deposits increased by 24% to 10.3 billion kroons, the bank said today.
The bank's revenues showed a year-on-year growth of 30%, totaling 800.2 million kroons.
The loan and leasing portfolio amounted to almost 39 billion kroons at the end of 2008, up by 32% against the previous year.
Deposits by private individuals grew in annual comparison by 55% and corporate deposits by 52%. The quality of the loan portfolio remained good, with losses making up 0.234% of the aggregate loan and leasing volume, the bank observed.
At the end of December Nordea had 97 187 customers, 22 offices and 516 employees in Estonia.
Linda Line to Put New Ship Into Service in March
10 February - The Estonian shipper Lindaliini AS, operator of fast boat traffic on the Tallinn-Helsinki route under the Linda Line Express trademark, will put its new ship Karolin into service at the beginning of the new season on 5 March.
Chairman of Lindaliini's supervisory board Rein Ojasaar told BNS that, ice conditions permitting in March, the Karolin will usher in the new season. The Merilin, docked for maintenance till 20 March, will be back in service at the end of that month.
"There is a possibility that we'll have two ships in operation on weekends, it mostly depends on whether the weather is good for travel and how many passengers there are," Ojasaar said.
Northeasterly winds have for now driven away ice and the Merilin will serve the Tallinn-Helsinki route only on weekends, he added.
According to the preliminary timetable for the approaching season, Lindaliini ships will make five daily trips on Mondays through Thursdays, eight trips on Fridays, six on Saturdays and five on Sundays.
The fast catamaran Karolin accommodates 402 passengers and cost Lindaliini nearly 100 million kroons (EUR 6.4 mln). The vessel is Australia-built and sailed until now in German waters.
Norwegian, Estonian Investors to Build Second Wind Park in Lithuania
10 February (BNS) - The Norwegian energy company Vardar and Estonia's Freenergy will start building a second joint wind park in Lithuania in the spring.
The park will go up at Mockiai near the port city of Klaipeda, said Martin Kruus, head of the company that will operate the facility in the future.
The planned capacity of the park, which represents an investment of 22.5 million euros, is 12 megawatts. It is expected to go into operation at the end of this year.
Vardar and Freenergy also own the Sudenai wind park in Lithuania, which has already been put into service.
Several operational wind parks in Estonia as well as wind park development projects also belong to the two companies.
Turnover of Rimi Up Five Percent on Year in January
9 February (BNS) - Turnover of the Rimi Estonia retail chain amounted to 30.3 million euros, 5 percent more than in January 2008.
The net turnover of the Rimi Baltic Group in January was 102.1 million euros, also five per cent higher than in the same period last year.
The sales proceeds of Rimi Latvia stores totaled 49.6 million million euros and of Rimi Lithuania stores 22.2 million euros, up respectively by 5 and 6 percent on year.
Rimi Baltic Group has a total of 237 stores in the Baltic countries, of these 75 in Estonia, 99 in Latvia and 63 in Lithuania.
Sales by Valio Eesti Climb Above EUR 83 Million
5 February (BNS) - The combined turnover of Valio Eesti AS and the Võru cheese factory of Valio climbed 8% from 1.1 billion kroons (EUR 70 mln) in 2007 to more than 1.3 billion kroons (EUR 83 mln) in 2008.
Revenues were affected by the steep decline in the prices of dairy products on the world market last summer, Valio Eesti, subsidiary of the Finnish food group Valio, said.
"Even though we increased cheese output by more than 12 percent and export by more than 13 percent, we were unable to maintain profitability under the conditions of remarkably lower world market prices," manager of Valio Eesti Kari Finska said.
Despite this, export markets will remain an important focus for Valio Eesti in the future, he said.
About 90% of the cheese made at the Võru cheese factory last year was exported. As a result, demand for dairy products and the world market price level had a significant impact on Valio's result.
Valio Eesti bought 7% more raw milk in 2008 than it did in 2007.
Investments in production facilities totalled 113.7 million kroons.
The company employs approximately 340 people.
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