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Estonian Review: 2-8 July, 2008
10.07.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Estonian, Hungarian Foreign Ministers Discussed Cooperation, Energy Security
Jul 8 - Bilateral relations and energy security issues were discussed at a meeting between Estonian Foreign Minister Urmas Paet and his Hungarian colleague Kinga Göncz who is now visiting Estonia.
In addition to bilateral relations and cooperation in international organizations and issues of energy security, solidarity and cooperation, aspects of NATO enlargement and the Lisbon treaty, cooperation of Finno-Ugric peoples and other themes were also discussed.
Speaking about the two countries' relations Paet underlined at the press conference the Estonian-Hungarian visa representation agreement according to which Hungary represents Estonia in visa issues in Moldova, Albania, Bosnia and Herzegovina, Macedonia and Pakistan. He added that Hungary could start representing Estonia also in India.
The Hungarian foreign minister noted that if economic cooperation between the two countries should be livened up then cooperation between Estonia and Hungary in the spheres of culture and education was almost ideal.
Paet too recognized the two countries' contacts in the sphere of culture and education. He said that joint activity as regards cooperation of Finno-Ugric peoples' should be deepened.
Speaking about energy security Paet said that Estonia and Hungary held different views in certain issues but in general issues the position of the two countries coincided.
Both the foreign ministers underlined the need for new associations, underlining that it was in the interests of the European Union.
Speaking about NATO enlargement both the foreign ministers expressed support to giving NATO membership action plans to Ukraine and Georgia.
The Hungarian foreign minister also visited the Cyber Defence Centre. Paet expressed the hope that also Hungary could accede to the Cyber Defence Centre.
Crew of Lehmann Timber has been Released
Jul 8 - The crew of the hijacked ship Lehmann Timber was released late on July 8.
The crew of the Lehmann Timber was released in the evening of July 8. One of the hostages was an Estonian citizen.
There are 15 people on board the Lehmann Timber, including four Ukrainian citizens and one Estonian -- mate Ardo Kalle.
Estonian Foreign Minister Urmas Paet said that the freighter Lehmann Timber the pirates released against ransom on July 8 was in international waters with its crew and on its way towards Oman. It may take one or two days for the ship to arrive in Oman.
After the ship arrives in port, the crew will be given medical aid if necessary and it will be decided whether the condition of their health permits them to embark on the trip home. Reception of the seamen, medical aid to them and their transport home will be organized by the shipping line.
During the negotiations, Estonian Foreign Ministry was in contact with the Crisis Group, who held the negotiations with the pirates. After the release of the vessel, Foreign Ministry has been in contact both with the Estonian crew member and his family.
Paet said that the situation in the area from where there was news of the hijacking of some ship almost every week must be brought under control. "Every case successful for the pirates inspires them to ever new attempts," the minister said. He said Estonia had raised the issue both on the European Union and NATO level and the same would apparently have to be made in the United Nations.
The pirates seized the Lehmann Timber, sailing under the Gibraltar flag, on May 28. The ship was launched in China in April and it was on its maiden voyage to Europe via the Suez Canal and the Strait of Gibraltar.
DEFENCE NEWS
First Estonian Civilian Surgeon Starts Work in Afghanistan
Jul 5 - The first Estonian civilian surgeon to work in Afghanistan, Reserve Capt. Tiit Meren, was scheduled to head for Afghanistan to start working at the military hospital at the Camp Bastion base.
The hospital at Camp Bastion treats NATO soldiers and locals who have sustained injuries in battles and insurgent attacks, military spokespeople in Tallinn said.
"British military surgeons say that you have to go to war to become a real surgeon. The systematic and intensive nature of military medicine provides every surgeon with extra qualities, since in a war as many things happen in a day as in civilian life during a year," Meren was quoted as saying.
Meren, a specialist in vascular surgery, is a graduate of Tartu University. He worked at the cardio surgical clinic of the University of Zurich from 1988-1989 and 1993-1994.
He is one of the founders and owners of the Clinic for Restorative Surgery in Estonia.
Meren has graduated from the reserve of officers' course and served as chairman of the external relations commission of the Estonian Reserve Officers Association. He has also been the representative for Estonian medical officers at the NATO reserve officers association for eight years.
The new field hospital at Camp Bastion that opened in February 2008 features a department for emergency medicine and a surgical department with two operating rooms.
The hospital team consists of about one hundred medics and the number of beds is 30.
Some 140 Estonian military personnel are serving on the mission in Afghanistan, most of them in Helmand province in the country's south.
Estonian Officer Receives High NATO Award
Jul 4 - Maj. Eero Kinnunen, who headed the infantry company ESTCOY-5 on a mission in southern Afghanistan earlier this year, has become the first Estonian to receive the NATO Meritorious Service Medal.
Maj. Kinnunen was decorated with the medal for his service as commander of ESTCOY-5 as part of the International Security Assistance Force (ISAF) in Helmand province of Afghanistan during the first half of 2008, military spokespeople in Tallinn said.
The NATO Meritorious Service Medal was first awarded in 2003 to commend NATO staff whose personal initiative and dedication went beyond their duty to make a difference both to their colleagues and to NATO as an organization.
When assessing nominations for the award, a number of criteria such as the performance of acts of courage in difficult or dangerous circumstances, showing exceptional leadership or personal example, making an outstanding individual contribution to a NATO sponsored program or activity, or enduring particular hardship or deprivation in the interest of NATO, are taken into consideration.
Together with Maj. Kinnunen the medal was presented in the biannual ceremony to 45 NATO personnel who served in Afghanistan, Kosovo, Iraq, Sudan, and in the Mediterranean.
Maj. Kinnunen entered service with the Estonian defence forces in 1994. He has served as company commander on a mission in Bosnia and Herzegovina, as platoon commander in Iraq and as company commander in Afghanistan.
He has been appointed infantry inspector with the Army Staff effective from this June.
Units of the Estonian defence forces are deployed in the composition of the NATO-led ISAF in Afghanistan since 2003. Three Estonian soldiers have been killed and 28 injured in Afghanistan during that time.
DOMESTIC NEWS
New Oil-shale Fuelled Power Block to be Launched in 2015
Jul 4 - A development plan now being worked out at the Estonian Economic Affairs Ministry sets the completion of a new oil-shale fuelled power block in the year 2015, the daily Eesti Päevaleht wrote.
This is inevitable in order to ensure competitiveness of domestic output of the electricity market that is going to become fully open in five years, said Einari Kisel, deputy secretary general of the ministry.
The investment into the power plant would be impressive -- different producers estimate the cost of the construction of a 400-megawatt power block at 15 billion kroons (EUR 960), which presumes working out an auxiliary system by the state.
"Estonia must have its own power plants," Kisel told the paper. The new plant would consume less fuel and discharge considerably less pollution into the atmosphere. Simultaneously the state would earn a sufficient income from quota trade in order to pay back the loan in 15-20 years despite the billion kroon annual loan servicing load.
"This is also the solution the European Commission is offering us," Kisel said. But he said that the existing old Narva power plants would still partly have to be reconstructed as a reserve capacity, and partly closed down.
Eesti Energia board chairman Sandor Liive said the discussion between the two opportunities would certainly be influenced by the European carbon dioxide trade. "Neither of the scenarios will rule out the other," Liive said.
Prime Minister: Entrepreneurship, Consistency and a Global View Bring Success
Jul 2 - On July 1, Prime Minister Andrus Ansip met with the leaders of Skype Eesti, with whom the role of innovation in the globalising economy was discussed. The readiness of the Estonian business environment for the formation and development of products aimed at the world market was talked about. In addition to legislation and the tax system, the bringing of highly qualified experts to Estonia and the motivating of them to live and work here were also discussed.
When speaking about the prerequisites for succeeding in global competition, the Prime Minister highlighted the importance of big goals. There is a line of significant characteristics that helps increase international success; next to entrepreneurship and consistency, it depends on the courage to think globally.
Together, it was found that openness towards the world and the ability to see and create new ideas is a way of thinking and already forms in the early years. To find an idea that not only myself and my neighbour like, but also a Hindu and an American, could be the effort of every entrepreneurial boy and girl, said the Prime Minister. He added that innovativeness and the will to do something must be supported by the entire educational system.
When speaking about the innovation policy of the state, the Prime Minister noted that this year EEK 2.008 billion is being invested into research and development. He also stated that the fruitfulness of investments is ever more dependent on how many experts with a Doctoral level degree there are in Estonia
Estonian Government sets up E-file System
Jul 3 - The Estonian government established an e-file system that unites the crime-handling institutions such as the police, prosecution and court into a uniform information system.
The establishment of the system should secure constant access to information to all the bodies conducting proceedings, the governmental press service said.
The e-file system consists of a central database that contains information on files and customer systems that store and introduce changes in the information. Data from other databases are fed into the system through a cross-use mechanism.
In the first stage of the implementation of the system information can be obtained from the punishment, population, commercial and residence data registers. Future plans include data exchanges with the registers of execution proceedings and prisoners as well.
Acquisition and Cross-Servicing Agreement (ACSA)
Jul 2 - An Acquisition and Cross-Servicing Agreement (ACSA) was signed in the Ministry of Defence between Estonia and the U.S.A. to simplify the provision of logistical support during joint exercises and participation in operations. The agreement was signed by the Permanent Undersecretary of the Ministry of Defence, Mr. Lauri Allman, and the representative of the Headquarters United States European Command, Navy Rear Admiral Steven Romano.
ACSA is a departmental bilateral international agreement that is the basis for the exchange of mutual logistical support, equipment and services. According to ACSA, logistical support covers, for instance, the exchange of food, clothing, transport, medical services, spare parts and the use of warehouses. ACSA does not include the exchange or transfer of major weapons systems between the parties.
According to Mr. Almann, the agreement highly improves the interoperability of the two countries' armed forces in joint operations, peace support operations, international operations and crisis situations. The concluded agreement is a necessary and practical agreement that will be used in areas of operations on a daily basis, remarked Mr. Almann.
During the conclusion of the agreement, Navy Rear Admiral Steven Romano expressed his wish to continue co-operation with Estonia's military structures and was grateful to Estonia for its support of the U.S. and coalition forces.
Lt. General Kert Named Marshall Centre Graduate of Month for June
Jul 3 - The Germany-based Marshall Centre for security studies has named Estonia's retired Lt. Gen. Johannes Kert as Graduate of the Month for June 2008.
The designation is used to honour graduates who in their further work and service have actively promoted the centre's ideas, military spokespeople here said.
Kert, former commander of the Estonian defence forces and current adviser to the defence minister, completed the Marshall Centre's inaugural executive course in strategic planning in 1994.
"The Marshall Centre was an excellent opportunity to discover for myself what strategy is about and at the same time it provided a broader angle on the connections between world affairs," Kert said.
The retired general is also a Hall of Fame graduate of the US Army War College.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Experts Optimistic Concerning Foreign Trade Expectations
Jul 2 - Experts interviewed by the Estonian Institute of Economic Research (EKI) are optimistic concerning outlooks of improvement in Estonia's foreign trade and foreign trade outlooks.
Most of the EKI experts, 55 percent, found when interviewed in June that Estonia's export volumes would be higher in six months than they are now. Besides, 90 percent of the experts find that the foreign trade balance will be better in six months than it is now.
At the same time 35 percent of those interviewed believe that export volumes will not change in six months and 10 percent that the volume is smaller.
Concerning the volume of import the experts were rather fragmented, with 35 percent believing that import would increase, 35 that it would remain unchanged and 40 percent that it would decline.
The experts are also optimistic concerning lowering of inflation in half a year -- 80 percent of those interviewed believe this will be the case. For this year experts forecast an average rise in consumer prices by 8.25 percent.
Concerning loan interests experts believe that in six months the interest rate is higher rather than lower compared with the present rate, and their opinion of share prices is that they will either keep the present level or will fall.
The experts underlined inflation as the biggest economic problem for Estonia. They were also worried because of international competitiveness and insufficient demand. Their least worries were export barriers and unemployment.
Estonian Banks have 1.55 million Internet Customers
Jul 8 - Commercial banks in Estonia had at the end of June 1,555,083 customers signed up to their online banking services, up by 6,657 since the end of May.
The number of customers of telephone banking increased by 8,881 during last month to 609,480.
Hansapank's online bank had the most customers, 801,703, of whom 1,844 signed up in June.
Number of Passengers through Tallinn Airport up 6 per cent in June
Jul 2 - AS Tallinna Lennujaam, operator of Estonia's Tallinn Airport, said that it served 175,270 passengers in June, 6.3 percent more than last June.
In the period from January to June 900,190 passengers passed through the airport, 12 percent more than in the same period last year, it appears from Tallinna Lennujaam statistics of Tallinn Airport.
The amount of mail passing through the airport grew by 6.5 percent compared with the previous year, amounting to 72.2 tons.
The amount of goods passing through the airport in June was 3,694.9 tons, more than double the amount carried in June 2007.
There were 3,895 flights carried out through Tallinn Airport in June, about 6.4 percent more than in June 2007.
Hansabank Working at Launching Pan-Baltic Business Development Division
Jul 4 - In May, Hansabank established a pan-Baltic business development division that will start developing products of the mass market and drawing up offers to clients for the whole Baltic market.
The earlier head of the Lithuanian bank, Giedrius Dusevicius, was appointed head of the division. The division is in the gearing phase and the bank is hoping to largely get it off the ground by the end of the year, head of the Hansabank group Erkki Raasuke said.
Simultaneously the bank decided that it wanted to consolidate some business spheres throughout the Swedbank group.
"These spheres are asset management, card settlements and international payments. At the moment further analysis is going on and after its completion the concrete form of its further operation will be established. We hope to be ready with all the spheres by the end of the year," Raasuke said.
Merko Group Earns EUR 50 million Profit Last Year
Jul 2 - The Estonian holding company Merko Grupp earned 775.8 million kroons (EUR 49.6 mln) net profit at 4.43 billion kroons consolidated turnover in 2007.
The turnover of Merko Grupp increased by 23.3 percent and the net profit by 17.5 percent on year, a representative of the company said.
The listed building company Merko Ehitus, of which Merko Grupp is the majority owner, and the fully owned real estate developer E.L.L. Kinnisvara brought the biggest profits to the Merko Grupp.
Merko Ehitus last year earned 545 million kroons to the owners. E.L.L. Kinnisvara's net profit was 321.2 million kroons.
Toomas Annus, chairman of the supervisory board of Merko Grupp, said it was one of the most successful years of operation for the company. "Companies in the ownership of Merko Grupp grew fast, and they also earned one-off revenues from the sale of some activities and companies. Properties of the Merko Grupp companies have their acquisition value in the books and the method of raising their book value has not been resorted to," Annus added.
Annus said the company would reinvest the whole profit as it wanted to keep a sufficient liquidity reserve. The company will pay no dividends. The total assets of Merko Grupp stood at 8.2 billion kroons as of the end of last year.
Merko Grupp companies provided jobs to 1,140 persons in Estonia, Latvia and Lithuania.
The major owners of Merko Grupp are Annus and Tõnu Toomik. The company has six shareholders in all.
Profit of Estonia's Stockmann up by 39 Percent in 2007
Jul 2 - The Stockmann AS trade company earned a net profit of 176.7 million kroons (EUR 11.3 mln) last year, 39 percent more than in 2006.
The revenue of Stockmann's Estonian unit grew by 11 percent to 1,388 million kroons, it appears from the annual report of the company. The net benefit-cost ratio of the company grew from 10 percent in 2006 to 13 percent in 2007.
Last year the company invested 15.2 million kroons, of this 8.7 million kroons into replacement of the cash register system.
Last year Stockmann employed an average of 671 people. The company's expenditures on labour grew by 18 percent on year to 100.3 million kroons.
This year the company is hoping to grow both its sales revenue and profit.
In addition to its own department store Stockmann AS also owns the Seppälä retail chain and the Hobby Hall mail order and retail trade operations.
The company had 156 million kroons retainable profit at the end of the year. The company is not planning to pay any dividends this year.
Stockmann AS is fully owned by Finland's Stockmann Oyj Abp.
Leibur Bakery Posts Growth in Profit by 56 Percent in 2007
Jul 2 - The Estonian bakery AS Leibur earned a net profit of 64 million kroons (EUR 4 mln) last year, 56 percent more than in 2006.
In 2007 the net turnover of the company was 371 million kroons, of which sale of baked products accounted for 99 percent. The growth in the turnover was by 27 percent against 2006, the company wrote in its report for the financial year.
Leibur's sales to Latvia and Lithuania increased last year, making up 11.3 percent of the turnover. The company earned revenue of 329 million kroons in Estonia, 15 million kroons in Latvia and 26 million kroons in Lithuania.
The sum total of the company's investments was 9.3 million kroons in 2007.
Leibur had 327 employees in 2007 and the expenditure on their wages and salaries totalled 46.4 million kroons. The payments to members of the executive board totalled 2.3 million kroons; no remuneration was paid to supervisory board members.
The board moved that the last year's profit should be retained.
The mother company of Estonia's Leibur is Finland's Vasan & Vaasan Oy.
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