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Estonian Review: 7-13 May, 2008
16.05.2008
FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
FOREIGN NEWS
Estonian and Greek Foreign Ministers Pleased over Serbia's European Choice
May 12 - During their meeting on May 12, Estonian Foreign Minister Urmas Paet and Greek Foreign Minister Dora Bakoyannis emphasised that giving a European perspective to the Western Balkans has helped and will continue to help develop democracy and stability in the region as well as in all of Europe. The ministers feel that Serbia clearly chose a path towards Europe during their elections.
The number of European-minded leaders demonstrates that Serbians are ready for changes, and they want to see the European Union in their future, said Foreign Minister Paet.
In discussing the Western Balkans in general, the ministers touched upon the situation in Kosovo and the necessity and importance of the European Union's mission EULEX in the newly independent country. We hope that a solution to the name debate between Athens and Skopje will be found as soon as possible, and that Macedonia will become a member state of both NATO and the European Union, Paet added.
The foreign ministers also discussed the conflict situation that has arisen in Georgia, the risk of its escalation, and the European Union's possibilities to help solve the complicated situation. Paet feels that the European Union should play a greater role in preventing the crisis from deepening. They also talked about the outlook for resolving conflicts in Cyprus after the recent Turkish and Cypriot presidential elections.
In addition, the ministers spent some time talking about energy security and a uniform energy policy. Foreign Minister Paet pointed out the necessity of preserving economic competitiveness and brought up the possibility of moving the energy industry to third countries. We cannot allow dishonest competition to develop in the domestic market, said Paet. If in the future the European Union energy producers need to buy their entire quota of CO2 from an auction, and a producer in a third nation does not have this same obligation, then their product has an unfair competitive advantage, the foreign minister stated.
Another topic was cyber security and related fields. This is an area that is demanding more and more attention and action. In order to meet the challenge of cyber dangers, the constant and intense exchange of information and international co-operation is required on a daily basis.
In talking about Estonia-Greece bilateral relations, the ministers agreed that among various business sectors, development of tourism is certainly a point of interest for both countries. According to Foreign Minister Paet, Greece has already been a popular vacation destination for Estonians for a long time, although the Greeks have not yet shown much interest in Estonia.
Estonia and Greece have signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion. Foreign Minister Paet expressed hope that the agreement would come into effect in the beginning of next year.
Foreign Minister Paet also met with chairman of the Greek Parliament's commission on external relations and defence Miltiadis Varvitsiotis, with whom he exchanged thoughts on the situation in the Western Balkans, energy policy, the European Union, NATO enlargement, and bilateral relations.
Estonia Helps Victims of Natural Disaster in Myanmar with Half a Million Kroons
May 8 - The Estonian Foreign Ministry is helping people in Myanmar who are suffering in the aftermath of Cyclone Nargis with 500,000 kroons, donated through the International Federation of Red Cross and Red Crescent Societies (IFRC). The sum was allocated from the Foreign Ministry's development and humanitarian aid budget.
Foreign Minister Paet stated that the situation in Myanmar right now is grave. The cyclone that battered Myanmar has swept the country into a humanitarian crisis, said Paet. The foreign minister said that Estonia's aid would help to alleviate the situation for the victims as well as improve their chances for returning to a normal life. It is also crucial that the leaders of Myanmar's junta allow the international community to help the victims, Paet added.
According to UN accounts, the locals are in desperate need of temporary shelter, medications, drinking water and water cleaning tablets, food and cooking supplies, fuel, plastic sheeting, clothing, and mosquito nets. The IFRC is supporting the Myanmar Red Cross, which is distributing aid supplies to victims of the storm.
The death toll of Tropical Storm Nargis, which swept over Myanmar on May 2, has reached 22,500. About 41,000 people went missing in the cyclone, which came ashore at the Irrawaddy River delta and also battered the inland. The UN estimates that the number of people left homeless could reach into the hundreds of thousands. Within two days, 190 km/h winds destroyed thousands of buildings and levelled many cities in one of the world's poorest countries.
Foreign Minister Hopes EU-Russia Talks to Start in June
May 12 - Estonian Foreign Minister Urmas Paet expressed hope that negotiations on the strategic partnership accord between the European Union and Russia will start at the first opportunity, that is, during the EU-Russia summit at the end of June.
The summit is to be held in the Siberian town of Khanty-Mansiisk from June 26-27.
"I hope that all the issues that are important for the EU and its member states, including the issues raised by Lithuania, will be solved in the negotiations," Paet said.
The minister said that the negotiations apparently will not be easy.
Lithuania agreed to drop its veto on the opening of negotiations on the strategic partnership accord between the EU and Russia.
The foreign Ministers of Lithuania, Sweden, Poland and the current EU presidency holder Slovenia agreed to include issues raised by Lithuania in the EU-Russia talks.
The issues highlighted by Lithuania are oil supply via the Druzhba pipeline, the necessity to deal with frozen conflicts in Georgia and Moldova, cooperation in investigating the actions of Soviet interior troops in Lithuania and the massacre of Lithuanian personnel at the border checkpoint of Medininkai, as well as support for former Soviet deportees who are returning to the Baltic states.
After Lithuania decided in the summer of 2006 to sell its Mazeikiu Nafta (Mazeikiai Oil) refinery to a Polish enterprise, Moscow closed the Druzhba branch to Lithuania due to what it said was a technical error.
Lithuania has said it hopes that the settlement reached by the four ministers in Vilnius over the weekend will be met with approval by the remaining 23 EU member states.
The EU is aiming to begin talks with Russia in June. Lithuania was the only one of the 27 EU member states to veto the start of the negotiations.
Baltics, EU Need Common Energy Policy - Estonian President
May 8 - Both the European Union and the Baltic states need a common energy policy, Estonian President Toomas Hendrik Ilves said at a meeting with Latvian colleague Valdis Zatlers.
"One of the main aims of a common policy is to ensure energy supply, this in both the shorter and the longer term," Ilves said.
The presidents also expressed concern about the difficult situation in Myanmar caused by the cyclone Nargis, a spokesperson for Ilves said.
"It is extremely important that the aid given by other countries, Estonia included, reach those who need it as soon as possible," Ilves said.
The heads of state also discussed guarding of the Baltic skies, cross border cooperation, the developments in Georgia and Abkhazia, and the state of military missions in Afghanistan, Kosovo and Iraq.
Ilves received Zatlers and his wife, Lilita, on his Ärma farm in the southern Viljandi region.
Estonia Opens Honorary Consulate in Faeroe Islands
May 9 - Secretary General of the Foreign Ministry Matti Maasikas opened the new Estonian Honorary Consulate in the Faeroe Islands. The honorary consul is Jóhan Páll Joensen.
Foreign Ministry Secretary General Matti Maasikas stated that it is essential for Estonia to expand its network of honorary consulates in the world. A small nation can never have too many friends and representatives. It's wonderful to see the Estonian flag now flying in the Faeroe Islands, which are visited by more Estonian tourists each year, said Maasikas. Since Honorary Consul Joensen is a well-known entrepreneur in the Faeroes, the Foreign Ministry hopes for an increase in business contacts between Estonia and the Faeroe Islands.
The honorary consulate is located in Klaksvik in the Kingdom of Denmark, and its consular region is the Faeroe Islands
Honorary Consul Jóhan Páll Joensen was born in 1955 in Klaksvik in the Faeroe Islands. Joensen graduated from the Tòrshavn Navigation School and completed his master's studies at Kambsdalur Business School in 1990. Since 1992, Joensen has been involved with fish processing enterprises. He has also been chairman of the board for the Employers Union of the Faeroe Islands. Joensen speaks Faeroese, Danish, and English.
DEFENCE NEWS
France to Take Part in Baltic Air Policing Also In The Future
May 12 - France is ready to participate in air policing in the Baltic States also in the future, the state secretary of the French Ministry of Defence, Jean-Marie Bockel said.
Meeting with his Estonian counterpart Lauri Almann in Tallinn, Bockel expressed France's support for the continuation of the present air policing arrangement.
France is about to provide two rotations of aircraft and crews under the air policing arrangement until 2011. Bockel said France is ready to participate in looking after the security of the Baltic air space also after 2011.
Bockel visited the NATO Cooperative Centre of Excellence in Cyber Defence in Tallinn.
French fighter jets were deployed at an air base in Lithuania to patrol the Baltic skies from April 1 to August 1 last year.
Aaviksoo and Laaneots Satisfied With Firing Results of Artillerymen
May 9 - The Minister of Defence, Mr. Jaak Aaviksoo, and the Commander of the Defence Forces, Lieutenant Commander Ants Laaneots were satisfied with the live firing exercise of the Artillery Group, which took place at the central polygon of the Defence Forces.
"It's obvious that the men are ready for the Spring Storm. I hope that this year we will be able to eliminate the obstacles to using the polygon, as we can't deprive the defence force members from exercising opportunities, said Mr. Aaviksoo, upon visiting the live firing exercise of the Artillery Group.
"The howitzer teams, consisting of conscripts, fired from this weapons system for the very first time. What we saw was quite satisfying, said Lieutenant Commander Ants Laaneots.
In total, 182 defence force members, 148 being conscripts completing compulsory army service, participated in firing from the artillery battery, which consisted of eight weapons. 231 rounds, in total, were fired from the howitzers within two days. Earlier, 155 mm howitzers have been used twice - last year - for firing exercises at the central polygon of the defence forces.
"The teams are universal and have learnt to shoot both the 155 mm and 105 mm howitzers; we also have to give the conscripts credit for being able to repair the howitzers in the field, if necessary, said the Commander of the Artillery Group, Captain Vahur Kütt. The soldiers can refine their skills during the Spring Storm.
Col. Roosimägi to Head Estonia's Ground Forces in Capacity as Chief Of Staff
May 13 - The appointment of Col. Urmas Roosimägi as chief of staff of the Army, means that he will probably be in charge of the ground forces of Estonia during the next year or so that the commander of the Army, Col. Indrek Sirel, will be studying in the United States.
The appointment of Roosimägi, who now heads the North-eastern defence district, takes effect from June 1.
The Army's chief of staff since 2006, Sirel was appointed by the president commander of the Army in April this year. Before that chiefs of staff had been in charge of the Army in an interim capacity during six years.
DOMESTIC NEWS
Foreign Ministry Celebrates Europe Day
May 10 - Europe Day was held on 9 May. For the occasion, Foreign Minister Urmas Paet and diplomats from the Foreign Ministry visited schools in Tartu and Tallinn on 8 and 9 May, talking about the European Union and Estonia's role in the union. On May 10th, the Foreign Ministry participated in the European Commission's open door day.
The students were able to hear about the development of the European Union, the Lisbon Treaty, the Schengen visa area and Estonia's opportunities as an EU member state, development co-operation, and study and work opportunities in the European Union. The talks were held for students at both Estonian and Russian-language upper secondary schools.
The Foreign Ministry has been giving European Union-themed talks in schools in honour of Europe Day for many years. Foreign Minister Urmas Paet feels it is essential for students to get a broad perspective on what goes on in society and the reasons for it. This direct contact with students is necessary, as it gives them a chance to voice their opinions, said Paet. He added that Europe Day also offers an opportunity to reflect on Estonia's position in Europe and Europe's position in the world.
Europe Day was established on 9 May 1950, which is when the first step was taken towards forming the European Union as it exists today. On 9 May in 1950, Robert Schuman first proposed the idea of uniting Europe. Schuman's proposal, which is known as a declaration, is considered the basis for the beginning of the present-day European Union.
Now May 9 is known as Europe Day, which along with the flag, anthem, motto and common currency, the Euro, characterise the political nature of the European Union. Europe Day is celebrated in all member states with various concerts, exhibits, and open-air activities, in order to create greater awareness of Europe-related facts as well as increase mutual understanding.
The Remains of Prime Minister Jüri Uluots Arrive in Estonia
May 13 - The remains of the former Prime Minister acting as President of the Republic, Jüri Uluots, and his family arrived in Estonia.
At the Port of Tallinn, a military honours ceremony was held, which was attended by the relatives of J. Uluots, representatives of the Estonian state and members of the fraternity Rotalia.
President Konstantin Päts appointed Jüri Uluots as Prime Minister in 1939. With the deportation of President Päts, Uluots as the last official Prime Minister became acting head of the state - Prime Minister acting as President of the Republic. In September 1944, he assigned the Government of the Republic to office, led by Otto Tief. On 19 September 1944, J. Uluots escaped to Sweden with his family, where he died on 9 January 1945. The Government of the Republic operated in exile until 7 October 1992 and was one of the main pillars of Estonian independence
The remains of Jüri Uluots, his wife Anette (d. 1995) and son Erik (d. 2006) will be reburied to Kirbla cemetery in Lääne County on 31 August. The remains were exhumed at Stockholm Forest Cemetery. The consul of the Republic of Estonia, the representative of the State Chancellery and the representative of the Estonian community in Sweden were present at the exhumation.
Up to now, three Estonian heads of state have been reburied in Estonia from abroad: Konstantin Päts (1990), Aleksander Warma (2002) and August Rei (2006).
Representatives of the Ministry Of Defence Place Wreaths at the Monuments to the Victims of World War II
May 8 - Representatives of the Ministry of Defence placed wreaths at the monuments of the deceased and victims of World War II at Klooga, the Defence Forces cemetery and Maarjamäe.
Wreaths were placed at the holocaust memorial at Klooga, the burial site of the members of the Red Army killed in the World War II, the Defence Forces cemetery in Tallinn, and the Maarjamäe memorial, where all the victims of repressions and crimes committed by the occupation regime during World War II were commemorated. The people who gave their lives in the battles fought to defend Estonia in 1944 were also commemorated.
On 22 November 2004, the United Nations General Assembly adopted a resolution on the celebration of the 60th anniversary of the end of the World War II, declaring 8th and 9th May to be the days for celebrating commemoration and conciliation. The resolution invited the countries to celebrate one or both of these dates by suitable means every day, paying homage to all the people who lost their lives in World War II.
ECONOMIC NEWS
Currency Rates in Kroons
(Bank of Estonia)
Selver Set to Open 14 Stores in Latvia
May 13 - The Estonian supermarket chain Selver has binding agreements in place on the opening of 14 supermarkets in Latvia; the company plans to open the first stores in the fourth quarter of this year.
Selver is set to open stores in Daugavpils, Kuldiga, Rezekne and Salaspils in the final quarter of this year. Plans are to open a central kitchen in Latvia at the end of next year.
Selver is operating on the Latvian market through its subsidiary Selver Latvia SIA.
AS A-Selver is a subsidiary of the retailer Tallinna Kaubamaja listed on the Tallinn stock exchange.
Parliament Endorses Jaan Männik as Chairman of Bank of Estonia's Supervisory Board
May 13 - The Estonian parliament voted in favour of the appointment of Jaan Männik, member of the supervisory boards of the Development Fund and national carrier Estonian Air, as chairman of the Bank of Estonia supervisory board.
The appointment was approved in a secret ballot with votes 62-7 and one abstention. Männik's five-year term in the office starts on June 13.
Nominating Männik as candidate for the post at the end of last month, President Toomas Hendrik Ilves said Männik possesses deep knowledge of the economy and management: he has chaired the management boards of Eesti Telefon and Eesti Telekom and sat on the supervisory boards of several companies.
In the president's opinion, Männik's personal qualities, knowledge and experience make him a suitable candidate for the position of chairman of the central bank's supervisory body.
The chairman of the supervisory board of the Bank of Estonia is appointed into office for a five-year term by parliament on the president's proposal.
Media Group Äripäev Boosts Profit 71% in 2007
May 13 - Estonian media group AS Äripäev earned net profit of 37.7 million kroons (EUR 2.4 mln) last year, which is 71 percent more than in 2006. The company's revenues increased by about 29 percent to 233 million kroons.
The revenues of the business daily Äripäev published by the group totalled 142 million kroons and operating profit was 32 million kroons. The Russian-speaking business daily Delovoye Vedomosti posted revenues of 17 million kroons and an operating profit of 2.5 million kroons. The income from the publication of handbooks was 23 million kroons and profit five million kroons. Seminars generated an income of 16 million and a profit of almost six million kroons. The corresponding figures for the book club were respectively 13 million and four million kroons.
The aripaev.ee online-site showed the fastest growth, accounting for nine million kroons of revenue and an operating profit of 1.9 million kroons.
Eesti Ehitus' Profit Up 43%
May 9 - The net profit of the Estonian construction group Eesti Ehitus for the first three months of 2008 grew 43 percent over the same period a year ago to 44.9 million kroons (EUR 2.87 mln).
Consolidated revenue in the first quarter amounted to 773.5 million kroons, an increase of 38.2 percent over the first quarter of 2007, Eesti Ehitus told the stock exchange.
"We can be in every way satisfied with the result for the first quarter of the year," chairman of the management board of Eesti Ehitus Jaano Vink said.
"Looking ahead it is clear that all participants in the market will have to put in more effort than before in the name of efficiency. Although it's been increasingly difficult to ensure profit margins in the recent periods, there is no reason for too much pessimism," Vink said.
He said tenders were under way to build several large-scale projects and the company was busy working on them.
Of group revenue in the first quarter, 81.9 percent was generated in Estonia, 16.2 percent in Ukraine and 1.9 percent in Latvia.
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