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Estonian Review: 7-13 January 2009
16.01.2009
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
President Ilves Meets with Azerbaijani Head of State
12 January - Estonia, like the rest of the European Union, sees Azerbaijan as a partner with great potential, with whom we wish to develop and increase both economic and political ties, President Toomas Hendrik Ilves confirmed at his meeting with Azerbaijani Head of State Ilham Aliyev. President Ilves is the first Estonian head of state to visit Azerbaijan in the history of the two countries.
The Caspian Sea Region and Azerbaijan have an important role to play in increasing the energy security of the EU. During the recent gas dispute between Russia and Ukraine, it again became clear how important the diversity of energy channels is, said President Ilves.
The European Union is certain that the success of our eastern partners depends on the readiness of each country and their will to converge with the Community and its values, President Ilves emphasised. This means democracy, the rule of law, respect for human rights, as well as increasing the pace of justice reforms and administrative capabilities.
According to President Ilves, Estonia does not presume to tell any country how to shape its future, but can provide recommendations on how to successfully achieve eurointegration. The Estonian head of state also spoke about the freedom of the press and the freedom for journalists and the media to operate, which are inherent to and important for Europe.
President Ilves also stressed the importance of closer economic ties between Azerbaijan and Estonia, and mentioned information technology as an example of a field where close and businesslike ties could be developed between the entrepreneurs of the two countries. Estonian entrepreneurs are interested in Azerbaijan and its developing economy as an investment environment as well as a market, President Ilves said.
The Estonian head of state confirmed that the Nagorno-Karabakh conflict poses a risk for the security and stability of the entire region. Estonia is convinced that lasting solutions for such conflicts can only be achieved at the negotiating table by diplomats and politicians, President Ilves said. I am glad that the Azerbaijani leadership is of the same opinion.
Presidents Ilves and Aliyev also discussed the intensification and expansion of co-operation between Azerbaijan and NATO. The Estonian president acknowledged Azerbaijan's participation in the missions led by the alliance in Kosovo and Afghanistan and in the international coalition in Iraq.
The two also opened an Azerbaijan-Estonia Business Forum in Baku.
Paet Discusses Gaza, Georgia with UN Secretary-General
13 January - At his meeting with UN Secretary-General Ban Ki-moon in New York, Foreign Minister Urmas Paet expressed hope that after the approval of the UN Security Council resolution on 8 January it will be possible for Gaza to establish a truce so that civilian deaths will end.
In addition to the situation in Gaza, Paet also discussed developments in Georgia, Afghanistan, Somalia and Congo, as well as Estonia's activities within the framework of the UN with the UN Secretary-General in New York.
At the meeting, Ban Ki-Moon stated that he was going on a six-day visit to the Middle East, during which he would visit eight nations with the goal of achieving a lasting truce in Gaza. He said that after achieving a truce, it will be essential to focus on building up Gaza and establishing unity among the Palestinians, which would allow the peace process to move forward.
Paet also stated that the primary goals are guaranteeing the safety of civilians and that humanitarian aid has access to Gaza. Estonia has given a million kroons' worth of aid through the United Nations Relief and Works Agency for Palestine Refugees. A truce would allow for border crossings to be opened and the peace process to continue, he said.
The UN Secretary-General affirmed the importance of Estonia's activities in helping Georgian reforms. Foreign Minister Paet said it is essential for the mandate of the United Nations Observer Mission in Georgia, which ends in mid-February, to be extended, because the Georgian security situation still requires the presence of international organisations.
The focus must be on building Georgia up after the war and increasing security, so that the nation could continue to make democratic reforms, Paet asserted.
The issue of pirates in Somalia was also addressed at the meeting. Paet stated that the UN Security Council's decision that allows the international community to fight against pirates both in Somali waters and on the mainland is essential for limiting piracy. Unfortunately, even some Estonian residents have been in the hands of pirates. Combating piracy in co-operation with the European Union and other nations is very important for Estonia, he emphasised.
Ban Ki-moon stated that resolving Somalia's domestic political crisis also plays a major role in getting Somali piracy under control, as it would allow for the creation of a unified government.
Ban Ki-moon and Paet both emphasised the UN's role in supporting civil society and improving the humanitarian situation in Afghanistan. The UN Secretary-General stated that the UN is expanding its activity in Afghanistan little by little, steadily reaching out into more provinces.
Paet asserted that Afghanistan is an essential development co-operation partner for Estonia, and Estonia is interested in the expansion of the UN mission's activities to the southern regions of Afghanistan. The presence of the UN mission in all regions of Afghanistan would improve the co-ordination of development activities and political communication, he added.
Newsweek Asks President Ilves for Tips for Obama
7 January - Estonian President Toomas Hendrik Ilves was one of the world politicians and economic gurus Newsweek magazine asked for advice for the next president of the United States, Barack Obama.
Newsweek published a special edition at the turn of the year entitled Issues 2009: How to Fix the World -- A Guide for the Next President. Among the persons whose views were represented were World Bank President Robert B. Zoellick, UN Secretary-General Ban Ki-moon, Nobel Prize winner Joseph E. Stiglitz, Russian Foreign Minister Sergei Lavrov, World Trade Organisation Secretary-General Pascal Lamy, and President of Brazil Luiz Inacio Lula da Silva.
Ilves outlined his views on how to heal the transatlantic rift caused by the Iraq war while faced with an increasingly assertive Russia.
The president called on the Obama administration to continue defending liberal democratic values while working with a "resurgent, authoritarian and resentful Russia. He acknowledged that balancing these objectives will not be easy, and it will be tempting to give in to realpolitik, simply conceding to Russia a sphere of influence along its borders.
He observed that some western politicians do not see defending democratic principles as a high priority when countries are worried about securing foreign markets or ensuring their energy supplies.
But the United States must not abandon its principles and should restore its close ties to Europe, the president stressed. Otherwise, 2008 could go down in history as the year when the fundamental assumptions of the post-Cold-War world, including the idea that aggression is unacceptable and that democratically elected governments should not be forsaken for pragmatic concerns, ceased to apply, he warned.
Ilves also warns Obama not to accept a world where authoritarian capitalism and massive oil wealth could become a plausible alternative to liberal democracy.
Referring to the Georgia conflict, Ilves said Russia showed the world it is willing to use force to change borders and demand regime change in a democratically elected government on its border.
Unfortunately not all decision-makers in Europe understand the gravity of this, he said, recalling a senior European Commission official who, when speaking before the European Parliament last fall, said that the European Union needs to address Russia "as it is", not as "we would wish it to be.
The United States and Europe need to restore their good relationship because only together can they remain critical bulwarks of democracy and the rule of law in a threatening world, Ilves said.
Finding Alternative Energy Sources Key Issue for EU Energy Security
9 January - Foreign Minister Urmas Paet participated in the Informal Ministerial Meeting of the General Affairs Council in Prague. The focus was on energy security matters. Due to Russia's decision to cut off the gas supply to Ukraine, some of the European Union's gas supplies have also been drastically reduced.
Foreign Minister Urmas Paet stated that it is regrettable that Russia and Ukraine have not reached an agreement and now many European Union nations have also been placed in a difficult situation. Paet said that negotiations being held over gas prices should not be tied to politics.
Negotiations on the price of gas should be held on a purely economic basis, and Russia should adhere to principles of the World Trade Organisation (WTO) and the energy charter in order to guarantee the transparency of the price determining process, said Paet. However, the foreign minister did express hope that the parties would reach an agreement onthe issue soon and Russia would restore the gas supply to Ukraine. It is also very important that the supply of gas to European Union member states be restored.
At the same time, the European Union should focus more than it has before on a common energy policy and finding alternative energy sources and suppliers. For this, it is necessary to create new connections with Central Asia and Azerbaijan, said Foreign Minister Urmas Paet. Paet stated that improving the internal connections of the European Union is also important, so that in a crisis situation it would be possible to redistribute the EU's internal gas supplies.
At the meeting, the Czech Republic expressed its desire to organise a meeting of the European Union Southern Corridor in the near future. Estonia welcomes this initiative, since reducing Europe's reliance on a single supplier is important to the European Union's energy and security policy and should be one of the primary priorities of the Union, emphasised Paet.
The Southern Corridor (East-West Link) is the collective name given to energy transport projects from the Caspian region to the EU that would not pass through the traditional passageway through Russia. The primary projects in the Southern Corridor are the development of the Nabucco gas pipeline (from Turkey to Central Europe), the White Stream gas pipeline (from Georgia through the Black Sea to Romania and/or Ukraine, and from there to Central Europe), and the Odessa-Brody-Plock oil pipeline.
The foreign and European affairs ministers of the European Union also agreed that co-operation between the EU and the United States in energy security is important. Paet stated that the EU should include the USA in the creation of a comprehensive post-Kyoto Protocol in Copenhagen in December of this year. The global financial crisis and economic decline should not prevent the EU and USA from making long-term decisions. It should also not damage the balance between climate and energy security, since both of those topics need our attention, he said.
The Estonian foreign minister also believes that we should consider updating the transatlantic action plan that was drawn up in 1995, taking into consideration changes in the world, including the enlargement of the EU.
President of the Republic, Commander of Defence Forces Thank US Ambassador
13 January - United States Ambassador Stanley Davis Phillips made a farewell visit to President Toomas Hendrik Ilves, who thanked the ambassador for his excellent work and his personal contribution to the promotion of Estonian-American relations. In recognition of the ambassador's service, President Ilves presented him with the Order of the Cross of Terra Mariana First Class.
At the meeting, President Ilves highlighted Estonia's accession to the US Visa Waiver Programme during Ambassador Phillips' term of office. The recently inaugurated NATO Co-operative Cyber Defence Centre of Excellence and US participation in its launch were also discussed at length.
Commander of the Estonian Defence Forces Lt. Gen. Ants Laaneots also decorated the outgoing US ambassador with the Defence Forces Special Service Cross.
"In the name of the Estonian Defence Forces, I wish to express sincere gratitude to you for your support; I also wish to thank you for co-operation between the US Armed Forces and the Estonian Defence Forces, Lt. Gen. Ants Laaneots said when handing over the decoration and wishing Phillips success in his next post.
USA Ambassador to Estonia Stanley Davis Phillips gave much support and assistance to the development of the Estonian Defence Forces and military co-operation with the US Armed Forces.
"We in the United States are very grateful to Estonia for its contribution and dedication in Iraq and Afghanistan," the outgoing ambassador said. "The time I served here has been very important for me and such a decoration given to me makes the time very special for me," Phillips said.
DOMESTIC NEWS
Spanish Company to Build Organ in Narva's Alexander Church
13 January - The Spanish company Grenzing has won a public procurement tender for the construction of an organ in the Alexander Church of Narva.
The cost of the organ will be nearly 16 million kroons (about EUR 1 mln).
Tuuliki Jurjo, music director of the Alexander Church of Narva, said that Gerhard Grenzing was an organ builder of significant experience who had built organs throughout the world during 30 years, including in the Brussels cathedral. In 2007, European organ builders declared Gerhard Grenzing to be the best European organ builder.
"The organ should have three manuals with 55 registers, of these 12 string registers. By type it will be a romantic German organ with French and Spanish influences. Hopefully the organ will be completed in the next three years in the church-concert hall with the best acoustics in Estonia, Jurjo said.
It will cost about 16 million kroons to build the organ and the project will be supported by the state and the City of Narva. The congregation is also planning to file an application for financing with Enterprise Estonia.
DEFENCE NEWS
Defence Forces Commander Inspects Troops in Afghanistan
7 January - Commander of the Defence Forces Lt. Gen. Ants Laaneots inspected Estonian units deployed in Lashkar Gah and met with the British command in Southern Afghanistan.
"The British are usually very reserved and not prone to giving praise, but at meetings with the commander of the Mid-South battle group and the chief of Britain's 3 Commando Brigade, I was assured that the activity of the Estonians is highly satisfactory. Our units are considered very valuable here in the centre of Helmand province," Laaneots said.
Laaneots added that the British are particularly happy about the Estonian mortar unit because it can be used to provide fire support to British troops as well.
During the visit, Laaneots met with Maj. Gen. Mart de Kruif, chief of the NATO-led ISAF Regional Command South, in Kandahar, and with Brig. Gen. Gordon Messenger, commander of Task Force Helmand and Lt. Gen. Jim Dutton, Deputy Commander ISAF, in the Helmand capital of Lashkar Gah.
The general also visited an Afghan army base at Shorabak and met with Brig. Gen. Muhaiyodin Ghori.
The meetings with commanding officers of the allied forces and the Afghan army provided Laaneots with a detailed overview of recent operations. Future plans were also under discussion.
The head of the Estonian contingent, Lt. Col. Sten Reimann, briefed the army chief about the activities of the units, the situation in the Lashkar Gah area and the operations in which Estonian soldiers have participated so far, as well as plans for the future.
At meetings with soldiers, Laaneots passed on New Year's greetings from home, gave all men a portable stove as a present and explained the reforms underway in the Defence Forces.
The general met with Estonian staff officers serving in Kandahar and a visit with members of the support unit was also scheduled.
The general was accompanied by the acting commander of the ground forces Col. Urmas Roosimagi.
Estonian troops have been participating in the NATO-led military operation in Afghanistan since 2003. At present the infantry company ESTCOY-7, support unit NSE-6, and staff officers, around 150 military personnel in all, are stationed in Kandahar and Helmand.
Defence Ministry Permanent Undersecretary Awards Defence Forces Members
7 January - Permanent Undersecretary of the Ministry of Defence Riho Terras awarded medals of participation in international peace securing operations to the Defence Force members who have recently returned from the operation in Iraq.
At the awards ceremony, which took place at the Kalev Infantry Battalion in Paldiski, Terras admitted that Estpla-17, which returned in December, will probably be one of the last units of the Estonian Defence Forces to serve in Iraq, due to the improved security situation in Iraq compared to the summer of 2003.
"Iraq is in the process of becoming a country that values democratic values, characterised by an increasing capability to protect its country. Compared with the situation some years ago, the number of attacks and other incidents has dropped by 80%. You have also given your small yet valuable contribution to this achievement, Undersecretary Terras said.
According to the permanent undersecretary, the service of the Estonian Defence Force members in Iraq has contributed considerably to ensuring the safety of the state and nation of Estonia. Your activities in Iraq can be described as one of the most important bricks that has been laid into the wall of security-related co-operation with our strategic partner, the United States of America.
In total, medals of participation in international peace securing operations were awarded to 34 Defence Force members of the Estpla-17 infantry unit, who served in Iraq during the second half of 2008, but also to one staff officer who served in Iraq and two Defence Force members who served in Afghanistan.
The Defence Force members who participated in their first international operation were awarded a medal - a brooch with the inscription IRAQ 2008 and a black star. The Defence Force members who participated in their second and third international operation were awarded a special medal.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Record Number of Passengers Pass through Port of Tallinn in 2008
8 January - A total of 7.3 million passengers passed through the Port of Tallinn last year, 11% more than in 2007 and according to the company the highest figure of all time.
The port said that the Tallinn-Helsinki route, where the growth during the year was more than 10%, and the Tallinn-Stockholm route, where the growth figure was 14%, accounted for the biggest share of the passengers.
A total of 6.1 million passengers travelled on the Helsinki-Tallinn route and 773 113 on the Tallinn-Stockholm route last year.
The number of cruise passengers increased by 28% last year against 2007, with 377 522 people visiting Tallinn and Saaremaa. Mainly Americans, Brits, Germans and Spaniards arrived at the Port of Tallinn on cruise ships.
Last year the number of ships calling at the port fell by a by 16% compared with 2007 as the passenger ship operators Superseacat and Nordic Jet Line wound up their operations during the year.
Tallinna Kaubamaja Posts Sales of 420 Million EUR for 2008
13 January - The unaudited consolidated sales of the listed Estonian retail group Tallinna Kaubamaja in 2008 totalled 6.6 billion kroons (EUR 419.8 mln), marking an 11% increase over the preceding year.
Consolidated sales by Tallinna Kaubamaja's supermarkets segment totalled 4.3 billion kroons, up by 15% year on year. Consolidated unaudited sales by the Selver supermarket chain in the final quarter of the year totalled 1.2 billion kroons, an annual increase of 20%, Kaubamaja said.
The estimated share of sales by Selver in Estonian non-speciality grocery retail was 15.2%, having increased by 0.5% during the year.
The sales revenue of the Kaubamaja department store segment amounted to 1.535 billion kroons in 2008, a 0.7% slide from a year ago.
The sales revenue of the property business segment climbed 3% compared with 2007 to 41.6 million kroons.
The sales revenue of the car business segment amounted to 528.0 million kroons.
A total of 37.6 million purchases were made at outlets of the Kaubamaja group in 2008, marking an 8% increase year on year. 28.9 million purchases were made in the Selver chain, 8.3 million in Kaubamaja department stores and 0.4 million in footwear retail.
Sales by Rimi Grow 8 Percent in 2008
13 January - Stores of the Rimi Estonia supermarket chain saw their sales climb 8% year on year to 391.4 million euros in 2008.
Sales by the Rimi Baltic Group grew 13% to 1.31 billion euros.
Sales by the Rimi Baltic Group in December 2008 increased by 5% compared with December 2007 to 132.4 million euros.
December sales by Rimi Estonia amounted to 38 million euros, by Rimi Latvia 65.4 million euros and by Rimi Lithuania 29 million euros, marking annual increases of respectively 1 percent, 9 percent and 5 percent.
Rimi has a total of 233 stores in the Baltic countries, of these 74 in Estonia, 97 in Latvia and 62 in Lithuania.
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