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Estonian Review 16-22 July 2008

25.07.2008

FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
CULTURAL NEWS
ECONOMIC NEWS


FOREIGN NEWS

Paet: Ukraine Efforts to Continue the Reform Process Should be Supported by the European Union

Jul 22
- Estonian Foreign Minister Urmas Paet participated in a session of the foreign ministers' council in Brussels. The ministers exchanged thoughts on the development of European Union-Ukraine relations, as well as on the situation in Somalia and developments in the Western Balkans. Other topics were the Middle East peace process and Iran.
The EU foreign ministers discussed the further development of European Union-Ukraine relations, considering the EU-Ukraine summit taking place in September. Foreign Minister Paet stated that Ukraine is a very important nation to the European Union, and its efforts to continue the reform process should be supported. “Ukraine's successful integration with Europe would set an example for its democracy-avoiding post-Soviet neighbours,” said Paet. “It would help to create stability in the entire region,” he added. According to the foreign minister, Estonia supports starting a visa dialogue between Ukraine and the European Union, with the final goal being a visa-free regime.
Foreign Minister Urmas Paet stated that the European Union must continue to co-ordinate its activities to support Somalia's peace process. “Resolving Somalia's interior political crisis is required for guaranteeing stability in the region,” said Foreign Minister Paet.
According to the Estonian foreign minister, everyone must work together to find a solution to problems related to hijacking and piracy in Somalian waters. “European Union member states cannot accept the fact that international ship routes are constantly endangered by hijacking or pirates,” Foreign Minister Paet emphasised. Paet feels that concrete European Union anti-piracy measures must be conceived and implemented, which would increase security for sea voyages and allow for ships used for piracy to be apprehended and the criminals punished. “The movement of information among military forces in that region must be improved,” Paet noted. The foreign minister thinks that proposals on how to increase security in Somalian waters should be presented at the next meeting of European Union foreign ministers in September. “I am pleased that Estonian sailor Ardo Kalle, who was held hostage by pirates, is on his way home. But efforts must still be made to end the violence that occurs in Somalian waters,” Paet added.
While talking about the situation in the Western Balkans, the foreign ministers focused first and foremost on the formation of Serbia's new European-minded government and further co-operation opportunities. The foreign ministers' council recognised the role of the Serbian government in the arrest of Radovan Karadžic and approved the conclusion that confirmed Serbia's European Union perspective. “We hope that the new government will quickly begin implementing reforms and fulfilling the requirements necessary for European Union integration,” stated Foreign Minister Paet.


Estonia Supports Training of Georgian Police Officials and Instructors

Jul 18
- The Estonian Foreign Ministry is donating 790,000 kroons (about 50,480 euros) to support training courses for police officials from Georgia's Samegrelo-Zemo Svanet region and instructors from the Academy of the Ministry of Internal Affairs of Georgia.
The sum is being allocated from the Foreign Ministry's budget for development and humanitarian aid.
The goal of the project is to improve the quality and sustainability of Georgian police training, as well as to stabilise Georgia's internal security and legal situation through international co-operation and an increase in contributions. According to Estonian Foreign Minister Urmas Paet, through this project Estonia is supporting the building up of a democratic rule of law and a suitable police system to go with it. “A police and law system that functions on the principles of rule of law will help to form a modern and European civil society in Georgia,” said Paet.
The training that will take place in Estonia will give the Georgian officers a grounding in the theory and practice of modern police work.
They will study the structure, duties, work methods and legal fundamentals of the Estonian police as well as newer methods used by the force. In the framework of the project the curricula of the Georgian academy also will be improved and follow-up projects to develop police training will be mapped out.
On the Estonian side, the police college of the Public Service Academy and the Paikuse police school are in charge of the implementation of the project.
Next to Afghanistan, Moldova and Ukraine, Georgia is a key priority of Estonia's development cooperation.


Estonia Recognises Serbian Government's Role in Apprehension of Radovan Karadžić

Jul 22
- Estonian Foreign Minister Urmas Paet stated that Estonia has always felt that it would be crucial for Serbia to actively co-operate with the International Criminal Tribunal for the former Yugoslavia (ICTY).
“We recognise the new Serbian government's role in the arrest of Radovan Karadžić,” said Paet. “It demonstrates Serbia's desire and will to develop into a democratic European society.”
Co-operation with the ICTY is also a prerequisite for the implementation of a European Union-Serbia Stabilisation and Association Agreement. “A European Union perspective for Serbia is important,” Paet noted.
Karadžić, the former leader of Bosnian Serbs, is considered responsible for the seizing of Sarajevo and overseeing the Srebrenica massacre.


Paet: European Union Should Increase Efforts to Resolve Georgia-Abkhazia Conflict

Jul 22
- Estonian Foreign Minister Urmas Paet discussed the situation in Abkhazia and South Ossetia with his Georgian colleague Eka Tkešelašvili.
Foreign Minister Urmas Paet stated that Russia needs to take actual concrete steps to peacefully resolve conflicts with Georgia. “Russia must remove its illegally stationed troops from Georgia and stop fulfilling tasks based on the decision made by President Putin in April,” said Paet. In April of this year, Russian President Vladimir Putin made a provision for establishing legal relations with the regions of Abkhazia and South Ossetia, which wish to separate from Georgia. Foreign Minister Paet added that the recent provocations on Georgia's airspace are certainly detrimental to attempts to reach a peaceful resolution.
Foreign Minister Tkešelašvili confirmed that Georgia is ready to move forward with the peace plan, and noted that it is also very important to reach an agreement regarding the return of refugees to Abkhazia. The Estonian foreign minister emphasised that the EU must increase its efforts in solving the Abkhazia and South Ossetia conflict in accordance with Georgian territorial integrity.



DEFENCE NEWS

Estonian Minehunter Admiral Cowan Joins NATO Force

Jul 16
- The Estonian minehunter Admiral Cowan joined the mine countermeasures squadron of the NATO response force. The vessel serves in the composition of NRF-11 that is on standby from July 1 till January 5, 2009.
ENS Admiral Cowan is part of the mine countermeasures squadron SNMCMG-1 during the standby period. The squadron will take part in mine-hunting operations if necessary.
From July 25 till November 15 the Admiral Cowan will be assigned to the North regional mine countermeasures unit. The ship will head to Devonport on July 25 to join other vessels of the group and sail to the Mediterranean for continued training and drills.
During that period the Admiral Cowan will take part in several international exercises and call at a number of Mediterranean ports. As the response force could be activated also near the end of the standby period, the parliamentary mandate for the ship's participation in NRF-11 runs till June 30, 2009.
The crew will for the first time be provided with a white tropical uniform whose suitability will be tested in the Mediterranean.
Estonia has previously contributed its naval staff and support ship Admiral Pitka, the minehunter Sulev, an explosive ordnance disposal (EOD) group and a military police unit to the NATO response force. In 2010 Estonia, Latvia and Lithuania will assign a joint infantry battalion to NRF-14.
The Admiral Cowan is the first of three Sandown class minehunters bought from Britain. It was delivered in spring 2007.


Estonian Officers Captured Almost 80 Illegal Border Crossers in the First Half Year of 2008

Jul 18
- Estonian border guards captured 78 illegal border crossers in the first half of this year, most of them on the eastern frontier.
The director general of the Border Guard Board, Roland Peets, told the border service established in the six months 60 cases of illegal border crossing and detained 78 illegals.
Sixty-two illegal border crossers were caught on the border with Russia and 16 at the air border, i.e. at the Tallinn airport.
From January 1 till July 9 border guards detected 16 persons who sought to enter Estonia with fake documents.
In 13 cases involving five nationals of Colombia, four Chinese, two Peruvians, one Senegalese and one Nigerian forged Schengen visas were used. In addition, three Jordanian citizens attempted to enter Estonia on the strength of counterfeit Belgian residence permits.
In the first half of 2007 border crossers presented forged papers in 11 instances.
Looking at the statistics for the first half of 2008, using counterfeit documents, crossing the border illegally in areas between crossing points, and entering Estonia legally but staying here with a view to taking up illegal residence and finding a job remain the main methods of illegal immigration.
In January-June 34 percent more illegal immigrants were captured than during the same period last year, Peets observed. The respective numbers are 30 and 23.
Border guards also detained 78 wanted individuals at the border in the six months.



DOMESTIC NEWS

Mate Ardo Kalle of the Lehmann Timber Arrived Home

Jul 22
- The Estonian mate, Ardo Kalle, of the German freight ship Lehmann Timber, which was hijacked by Somali pirates on May 28, arrived home.
The company owning the ship flew Kalle to Masqat, Oman, and from there the seaman arrived via Amsterdam in Tallinn. Kalle was met by Lauri Bambus, director general of the ministry's consular department.
Even before boarding the plane Kalle along with the other crew members were given a medical examination at a local hospital. "All the analyses were taken at the hospital, but the doctors did not say very much, just that you're OK as much can be seen from outside, no serious complaints, but the analyses were given and they will be handed over both to the Ukrainian colleagues and the ship-owner," Kalle said, "We will see later if anything should turn out. But yes, I feel quite normal and have no major complaints."
Somali pirates hijacked the German ship, Lehmann Timber, on May 28. It has a crew of 15, including the captain, a Russian citizen, the mate, an Estonian, and four Ukrainian citizens.
On July 8, the pirates released the seamen against a ransom of 750,000 US dollars, although they initially demanded more than one million dollars.
On July 11 the ship developed turbine trouble and was hit by a storm. On July 12 the crew sent out a Mayday call, and on July 13 a military helicopter took water and food to the ship and the US warship Monson arrived in its vicinity. The tugboat Dubai Moon arrived to take the ship to the Salalah port in Oman, a trip that took almost a week.


Voting by Cell Phone May Be Possible in 2009

Jul 16
- If the parliament approves a bill on m-elections, Estonian citizens will be able to cast their votes by mobile phone already in the 2009 European Parliament elections.
It depends on the fate of the Justice Ministry-drafted bill whether Estonia becomes the first country in the world whose citizens can vote for their candidates also by cell phone.
The idea of m-elections has received the strongest support from the ruling Reform Party. The chief executive of the largest mobile communications operator EMT, Valdo Kalm, says EMT is technically ready for this to happen.
In addition to allowing the use of both ID cards and mobile ID in electronic voting, the bill also proposes to extend the period of e-voting.
If so far e-voting was possible only for three days before the election day then in the future the time would be extended to 10 days.
One could in principle cast one's vote anywhere provided there was an Internet connection available.
The m-voting system resembles that of voting via computer by an ID card, except that voters will use their cell phones instead of the ID card reader to enter the system by activating the certificates assigned to the SIM card. Only one certificate per person will be allowed.
According to the covering letter to the bill, the aim of the new system is to raise voting activity and encourage also people who do not want to go to polling stations to cast their votes.
The Justice Ministry said m-voting would help avoid queues at polling stations as voters will have more time in which to cast their votes electronically.
In the 2007 general election 30,275 people used e-voting. More than 10,000 EMT customers have signed up to the mobile ID service and all of them are potential m-voters.


Estonia Has Nearly 150,000 Naturalized Citizens

Jul 22
- The Estonian Citizenship and Migration Board said 148,175 persons had been granted Estonian citizenship by naturalization since the reestablishment of Estonian independence as of July 1.
As of January 1, 2007 Estonia had 116.248 and as of July 1 113,173 persons of undefined citizenship. 1,954 applications for Estonian citizenship were filed in the first six months this year.


Estonia's New Health Plan Focuses on Raising Life Expectancy

Jul 17
- The Estonian government endorsed a public health development plan for the 2009-2020 period aimed at raising the average healthy life expectancy to 60 years for men and 65 years for women, and the average life expectancy to 75 years for men and 84 years for women.
The plan deals with health policy on the level of the whole society rather than just one ministry. "It's clear that health is not supplied by a doctor who writes out a prescription for it and then you go and buy it in a pharmacy," Social Affairs Minister Maret Maripuu said.
"The state, local self-governments, the private and the third sector, and people themselves must all together see to the good health of the population," the minister said.
Recent years' developments in public health have been positive -- the birth rate has risen and the lifespan has lengthened, she observed.
As a result of the last decade's developments, the Estonian public health system has become one of the most cost-effective in Europe. But the gap with West European and Nordic countries, whose level is a guiding mark to Estonia, is still wide and population growth remains negative.
The overall objective of the development plan is to increase the number of years of healthy life by reducing the premature death and sickness rates.



CULTURAL NEWS

Museum of Anton Hansen Tammsaare to Be Reopened in Russia's Sochi

Jul 22
- The house museum of the Estonian writer Anton Hansen Tammsaare will be reopened in Estosadok (Estonian Garden), a settlement in the territory of the Russian Black Sea resort of Sochi.
Festive events with the participation of Estonian representatives will take place there in September. Ants Paju, founder of the museum and coordinator of its refurbishment, told that opening of the museum, repaired with Estonian support, was largely connected with the local tourist season, which was now at its peak.
The events dedicated to the 130th birth anniversary of the writer and the 20th anniversary of the museum will take place on September 13 and so also the display is still incomplete.
A number of translations of Tammsaare's works, which have been made into more than 39 languages, will be sent to Sochi by fall. Paju said that Maarja Vaino, director of Tallinn's Tammsaare Museum, had done a lot to extend the display.
The Estonian Culture Ministry allocated 400,000 kroons (EUR 25,000) for the repair of the museum, established on Paju's initiative in 1988.
The museum has six rooms, including Tammsaare's memorial room. Tammsaare lived in Estosadok in 1912-1913.
Estosadok in Russia's Krasnodar region was established by Estonian peasants who emigrated there in the 1880s.



ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)


Risk Capitalist: Nothing Wrong with Estonian Economy

Jul 17
- Steve Jurvetson, a US risk capitalist, said that setbacks in the Estonian economy were temporary and growth would continue soon.
"I feel no concern, because I'm interested in long-term outlooks," Jurvetson said. "If we invest into some company, we are not interested in what is taking place in that quarter or that year," he said.
The risk capitalist said it was important how things would stand in five or seven years. "Let us reflect for a moment whether there is something fundamentally worse in Estonia now than half a year ago? There is not. All the preconditions are as good. The fact that economic growth was at one level the previous year and at another this year does not interest me. It will be of no consequence in ten years."
Jurvetson said the Estonians' security in the future was their enterprising spirit and information society largely based on e-services.
Jurvetson earned a fortune by the sale of Hotmail and Skype. At present, among other things, he has made investments into the Tallinn stock exchange and Estonian real estate.


Sales of Car Dealer Amserv Exceeded Two Billion Kroons in 2007

Jul 22
- Sales of the Toyota, Lexus, Opel and Chevrolet dealer Amserv Grupp exceeded two billion kroons last year.
The group's consolidated sales were 2.4 billion kroons representing a year-on-year growth of 26 percent. Net profit, at 85.5 million kroons, increased 25 percent, the annual report shows.
Expenses also grew almost 26 percent, amounting to 2.3 billion kroons. The group sold last year 7,822 vehicles altogether, 16.4 percent more than in 2006. Amserv sold 4,812 cars on the domestic market and 3,010 in Latvia.
Toyota was the top selling brand with 3,775 units sold. Next came Opel with 1,365, Lexus with 427, and Chevrolet with 296 sales. The group also sold 1,959 second-hand cars.
Amserv invested more than 120 million kroons in showrooms and equipment in 2007 and plans to invest 220 million kroons this year.
The group employed last year on the average 444 people in Estonia and Latvia and its payroll expenses added up to 108 million kroons, more than doubling from 2006. The increase in labor expenses was mainly due to a marked growth in the number of personnel and rising wages.


Estonian Air Passenger Number Increased 13.3 Percent in the First Half of 2008

Jul 21
- Estonian Air carried 374,630 passengers in the first half of this year, a year-on-year increase of 13.3 percent.
Passengers on the national carrier's regular flights numbered 339,578 which is 14.3 percent more than in the same period of 2007, the company said.
In June 73,819 people including 68,726 on regular flights used the services of Estonian Air. Compared to June 2007, the total number of passengers increased by 1.1 percent and that of passengers on regular flights by 6.2 percent.
The company's market share in regular flights out of the Tallinn airport was 45 percent in the first half of 2008, up by two percentage points from the same period last year. The overall market share including also charter flights, at 42 percent, was one percentage point bigger than at the same time last year.


Shipper Tallink's Galaxy to Start on Stockholm-Turku Line

Jul 21
- Tallink's cruise ferry Galaxy that used to sail between Tallinn and Helsinki will be put into service on the Stockholm-Turku line from July 23 under the Silja trademark.
M/S Galaxy will adopt the timetable of the Silja Festival that served the route before.
The Galaxy's Estonian crew has been transferred to Tallink's new cruise ferry, the Baltic Princess. The ship's new crew is made up of the Silja Festival's Swedish crew and additional new employees. Due to the change of line, the Galaxy will be sailing under the Swedish flag.
M/S Silja Festival that sailed on the Stockholm-Turku route will be transferred to the Stockholm-Riga line at the beginning of August, replacing Tallink's oldest passenger ferry Vana Tallinn.
The 2006-built Galaxy is among the largest passenger vessels in the Baltic Sea that accommodates 2,800 passengers.


Car Seat Belt Maker Norma Doubles Quarterly Profit

Jul 21
- The Estonian car safety equipment maker Norma earned a net profit of 25.4 million kroons in the second quarter of 2008, almost twice as much as in the same period a year ago.
Net profit made up 6.5 percent of sales compared to 4.1 percent a year earlier, the company observed.
Net profit in the first half of 2008 amounted to 55.9 million kroons or 16.6 million kroons more than in H1 2007.
Sales revenue totalled 392.4 million kroons in the second quarter, up by almost 26 percent year on year. Sales to Russian and Ukrainian customers soared by 71.7 percent while sales to other customers decreased by 2.9 percent.
Sales to the parent company Autoliv reached 167.4 million kroons, a drop of 4.1 percent compared to the same period in 2007.


Former London Landmark May Be Put up in Estonian Capital's Harbour Area

Jul 19
- Entrepreneurs Eerik-Niiles Kross and Heiti Haal intend to reassemble the old building of the London-based Baltic Exchange near Terminal D of the port of Tallinn.
Talks over erecting the early 20th-century structure, a former landmark of London, in the port area have been held with the owner of the site, Tallinna sadam (Port of Tallinn), Kross said. "No agreements have been concluded as yet. The supervisory board of Tallinna Sadam will return to the question at the end of August. As I too sit on the board I'll have to remove myself from the discussion," Kross added.
In his vision, the Baltic Exchange building could house Estonian shipping companies. As the building is very imposing it would also make an excellent venue for festive events.
The businessmen bought the Baltic Exchange building for 18.5 million kroons.
The building, a fine example of Edwardian architecture, was seriously damaged in an IRA bomb attack in 1992 after which it was pulled down piece by piece and stored in crates for subsequent reassembly.
The London authorities dropped the plan under pressure from developers and a new building went up in its historic location in the City's St Mary Axe Street.


Ukrainians Formed over Half of Applicants for Estonian Work Permit in the First Half Year of 2008

Jul 18
- More than half of the people who applied for a short-term work permit in Estonia in the first half of this year were Ukrainian nationals, figures by the Citizenship and Migration Board show.
Citizens of Ukraine made up 54 percent of the 303 applicants, followed by Russian nationals (21 percent) and Georgian passport holders (5 percent). Workers carrying Moldovan and Belarusian passports accounted for 4 percent each and the remaining 10 percent or so were nationals of some other country.
The applications show skilled jobs in the field of equipment installation to be the most sought after -- such applications numbered nearly 200 in the first half of this year. Less than 50 applications were filed for creative jobs and research, and for working as expert, adviser of consultant. Single applications were for permission to work as teacher, sports specialist, a child's nurse or domestic help.


Profit of EMT Went up by Nearly 15 Percent on Year

Jul 18
- The Estonian EMT mobile communication provider earned a net profit of 87 million kroons in Q2 this year, 14.7 percent more than in the same period last year.
Compared to a year ago, the number of contractual clients has increased by 30,000, reaching 480,000 by the end of the second quarter of 2008. EMT assesses its market share of active SIM cards to be 47 percent.
The revenues received from mobile Internet continued to demonstrate very rapid growth. In the second quarter of this year, the revenues from AS EMT mobile data communications increased by more than 50 percent compared to same period in 2007.
In June 2008, the users of AS EMT mobile data communications numbered 150,000, 8,000 users more than at the same time last year.


Ships of Tallink Issued International Environment Certificate

Jul 17
- The Estonian shipping line AS Tallink Grupp said ships of the company and its subsidiary specializing in technical operations, HT Laevateenindus, were issued an international environment certificate ISO 1400:2004 by Lloyd's Register.
Zbigniew Kurowski, head of the Baltic region of Lloyd's Register, recognized HT Laevateenindus for its proactivity in promoting environment-friendly and secure shipping, which prevents threats to the marine environment.
"In times when 90 percent of freight in the world is carried by ships, the share of shipping in transport-generated global air pollution is only seven percent. Despite that the shipping sector is prepared to take additional efforts for the contraction of environmental impacts," Kurowski said.
ISO 14001:2004 is an international highly-recognized environmental management certificate access to which is voluntary.


Estonia to Join Convention on Ships' Anti-Fouling Systems

Jul 16
- The government will consider Estonia's accession to an international convention that allows to bar the use of anti-fouling substances harmful to the marine environment and health on ships entering Estonian ports.
The convention sets out clear rules under which anti-fouling systems can be banned.
As a state party to the convention Estonia can exchange with other countries the results of research and development and the experience gained in the course of control of the systems.
The convention will enter into force on Sept. 17.
Anti-fouling paints are used to coat the bottoms of ships to prevent sealife such as algae and molluscs attaching themselves to the hull, thereby slowing down the ship and increasing fuel consumption.





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