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Estonian Review: 13-19 February, 2008

22.02.2008

FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS
CULTURAL NEWS



FOREIGN NEWS

Paet: EU Must Intensify Co-operation to Resolve Regional Conflicts in its Close Neighbourhood

Feb 19
- Estonian Foreign Minister Urmas Paet participated in a session of the European Union General Affairs and External Relations Council (GAERC) in Brussels.
In the general affairs section, the EU foreign ministers approved the agenda for the European Council being held in March, and in the external relations session, the main topics of discussion were issues related to the European Neighbourhood Policy.
The foreign policy leaders of the European Union discussed the implementation and achievements of the European Neighbourhood Policy (ENP) with Benita Ferrero-Waldner, European Commissioner for the European Neighbourhood Policy. Foreign Minister Urmas Paet stated that most ENP nations still require a lot of support in carrying out political, social, and economic reforms. “We support horizontal discussions between the Commission and member states that would improve co-operation with our ENP partner countries,” said Paet. “First and foremost, it is crucial to have extensive co-operation in the areas of economy and trade, visa facilitation negotiations, and in resolving regional conflicts in the close neighbourhood of the EU,” the foreign minister emphasised.
In the general affairs session, the foreign ministers approved the agenda for the European Council being held in March. The spring Council will focus on three topics: the launching of the new cycle of the Lisbon strategy, the stability of financial markets, and integrated climate and energy policy. Foreign Minister Paet stated that Estonia is also interested in covering aspects of energy security and the issue of control over electricity imported from third countries.


Estonia Recognises Republic of Kosovo

Feb 21
- The government of the Republic of Estonia decided during its session today to recognise the independence of the Republic of Kosovo.
Foreign minister Urmas Paet emphasised that the best plan for Kosovo is the status settlement and time schedule proposed by UN Special Envoy of the Secretary General Martti Ahtisaari. "It is noteworthy that in its declaration of independence, the Kosovo Assembly confirms its readiness to implement the Ahtisaari plan, including everything that deals with minorities and the protection of their cultural heritage," Paet emphasised.
According to Foreign Minister Paet, providing the necessary international aid and experiences to Kosovo will continue in order to help build up the state. “The European Union designated an EU special envoy to Kosovo. The EU will also send a mission of almost 2,000 people to Kosovo, which will help the Kosovo authorities in all areas related to the rule of law, in particular in the police, judiciary, customs and correctional services. Several non-EU states are also taking part in the mission, including the United States, Turkey, Switzerland, Croatia, and Norway. The international staff will be accompanied by 1,000 locals. Estonian representatives will also be participating in this mission,” Paet elaborated.
Kosovo has been under international control for the past eight years. The Kosovo Assembly declared the province independent from Serbia on 17 February.


Estonia Helps to Ease Situation of Internally Displaced Persons in Kenya

Feb 15
- The Estonian Foreign Ministry is donating 800,000 kroons to ease the situation of Kenya's internally displaced persons (IDPs).
Since the presidential election on 27 December 2007, ethnic conflicts have exploded in Kenya. Over a thousand people have died as a result of the violence, and hundreds of thousands have fled their homes.
“Hundreds of IDP camps have formed in the western part of Kenya, and they are in dire need of humanitarian aid and protection,” said Foreign Minister Urmas Paet. “Hundreds of thousands of Kenyans are in danger of starvation; they lack food, water and other necessaries of life,” Paet added.
According to UN data, the violence has forced up to 600,000 people to flee or leave their homes. Many internally displaced persons are without shelter, medical care is difficult to obtain, and gender-based violence is widespread.
The United Nations High Commissioner for Refugees, through which Estonia is offering assistance, made an appeal for aid for Kenyan displaced persons in January. The UNHCR deals first and foremost with meeting peoples' basics needs in the displaced persons camps-food aid, transportation and logistics, household items, shelter, drinking water, and the creation of sanitary conditions.


Foreign Minister Invites Iceland to Participate in Cyber Defence Centre

Feb 16
- Estonian Foreign Minister Urmas Paet, in Iceland on a visit, met with his Icelandic colleague Ingibjörg Gísladóttir in Reykjavik.
At their meeting, the two discussed bilateral relations, co-operation within the framework of NATO and the European Economic Area, cyber security, and opportunities for joint development co-operation with third countries.
Topics related to NATO included current operations and the NATO Centre of Excellence for Cyber Defence, which is to be established in Tallinn.
Both sides agreed that co-operation in the area of cyber security must become more active. The Estonian foreign minister invited Iceland to participate in the work of the NATO cyber defence centre. “Estonia has experience in handling cyber attacks, and we would like to welcome Icelandic specialists to join the NATO cyber defence centre being established in Tallinn,” said Paet.
Foreign Minister Paet expressed his satisfaction over the success of the first joint development co-operation project with Iceland, in which Georgian police officers were trained at the Public Service Academy of Estonia. “The feedback from those who participated in the project has been positive,” said the Estonian foreign minister. “We are definitely interested in continuing trilateral co-operation, and we'd like to find new projects that we can contribute to together,” he said.


Foreign Minister Encourages Ukraine to Continue Moving Towards NATO

Feb 14
- Estonian Foreign Minister Urmas Paet met with Ukrainian Foreign Minister Volodymyr Ogryzko in Kiev. The ministers focused on bilateral relations as well as Ukraine's relations with NATO and the European Union.
During the meeting of the Estonian and Ukrainian foreign ministers, a topic discussed extensively was Ukraine's aspirations towards NATO. Foreign Minister Paet assured that Estonia is a strong supporter of further NATO expansion. “Ukraine should be given a Membership Action Plan (MAP) as soon as possible, hopefully during the next NATO summit in April,” Paet emphasised. The Estonian foreign minister stressed that the further decisions of the alliance will be based on Ukraine's own activities. “Ensuring public support is extremely important in Ukraine's aspirations to join NATO,” Paet noted.
The Ukrainian foreign minister thanked Estonia for sharing its reform experiences within the framework of development co-operation. The Estonian foreign minister assured that Ukraine will continue to be an essential development co-operation partner. The Estonian foreign minister also issued an invitation for his Ukrainian colleague to visit Estonia.
Foreign Minister Paet stated that Estonia feels it is important for the European Union to become more actively involved with Ukraine. “Co-operation opportunities between the European Union and Ukraine should be expanded to include the four freedoms-the free movement of goods, services, persons and capital. Economic co-operation could advance further as well,” said Paet.
Foreign Minister Paet was in Ukraine to attend the Meeting of the Foreign Ministers of the Countries of the Black Sea Region and of the European Union. On 13 February he met with Ukrainian Vice Prime Minister Hryhoriy Nemyria.


Paet: Years from now, Black Sea could be within European Union

Feb 14
- Foreign Minister Urmas Paet participated in the first Meeting of the Foreign Ministers of the Countries of the Black Sea Region and of the European Union in Kiev.
The goal of the foreign ministers' meeting was further co-operation between EU and Black Sea nations. Joint endeavours in the areas of transportation, energy, and environmental protection were discussed, as well as increasing regional security and stability.
Foreign Minister Paet compared the formation of regional co-operation among the Baltic States with the initiation of co-operation among the Black Sea states, thereby emphasising the importance of sharing experiences. “For Estonia, co-operation in the Baltic Sea region was very important on the path to the European Union,” Paet stated. The foreign minister believes that things should move in such a direction that one day the Black Sea will be included within the European Union.
According to the Estonian foreign minister, the Black Sea region co-operation initiative demonstrates that the region has gained importance for the European Union. “With the accession of Bulgaria and Romania, the European Union reached the shores of the Black Sea,” said Paet. “In addition to regional co-operation, this also gives the opportunity for the European Union to strengthen relations with European Neighbourhood Policy partner countries,” confirmed Foreign Minister Paet.
In addition to the foreign ministers of EU and Black Sea countries, the meeting was also attended by European Commissioner for External Relations and the European Neighbourhood Policy Benita Ferrero-Waldner, as well as representatives from the World Bank, the European Bank for Reconstruction and Development, and other organisations.


Prime Minister Pledges Estonia's help, Support to Macedonia

Feb 13
- Meeting with the Macedonian Minister of Information Society Ivo Ivanovski, Estonian Prime Minister Andrus Ansip said that Macedonia can count on all-around support and help from Estonia.
Ansip said that information technology is a field in which Estonia has experience and that it would be an honour to be able to share it with Macedonia.
The prime minister highlighted how well Estonian people have adapted to changes. For instance, last year 86 percent of residents here filed their tax returns online, he said.
Macedonia wishes to offer the same opportunity to its residents in the coming years, Ivanovski said.
“Our main problem is people's fear as regards the security of Internet,” he said.
Estonia supports Macedonia's aspirations to join the EU, Ansip said. Estonia backs the beginning of accession negotiations with Macedonia as soon as the homework necessary for the country's development and accession to the EU has been done, he added.
Estonia also supports Macedonia's accession to NATO, being a firm supporter of the open door policy of the alliance, said the prime minister.
Ansip will make a visit to Macedonia from 25-26 March.


Nordic and Baltic Foreign Ministers Discuss Ukraine's European Union Integration

Feb 17
- Foreign Minister Urmas Paet participated in a meeting of the Nordic-Baltic (NB6) foreign ministers in Brussels.
The meeting took place within the framework of the European Union General Affairs and External Relations Council (GAERC) session. The Polish and Ukrainian foreign ministers also participated. Relations, including trade between Ukraine and the EU were discussed.
Foreign Minister Urmas Paet stated that Estonia has been a steady supporter of Ukraine's European Union aspirations. “The European Union's active involvement with Ukraine will inspire the nation to continue its reforms,” said Paet. “Ukraine should take its next steps towards harmonising legislation with the EU, which is also in the EU's immediate interests,” Paet added.
The foreign ministers welcomed Ukraine's accession to the World Trade Organisation (WTO). According to the Estonian foreign minister, negotiations should begin for a European Union-Ukraine free trade agreement. “For the negotiations to be successful, Ukraine must try to complete its domestic goals on time,” Paet noted. “Ukraine must first and foremost ratify the WTO agreement,” the foreign minister added.
The foreign ministers expressed satisfaction over the agreement reached by Ukraine and the EU to extend their European Neighbourhood Policy action plan by one year. According to Foreign Minister Paet, the visa facilitation and readmission agreement signed with Ukraine will certainly help to intensify EU-Ukraine contacts and co-operation.


DEFENCE NEWS

Baltic Navy Chiefs Met in Latvia to Discuss Joint Activity

Feb 13
- The naval commanders of Estonia, Latvia and Lithuania met in the Latvian town of Liepaja to discuss common activities, primarily matters relating to the joint mine countermeasures (MCM) squadron BALTRON.
Commander of the Estonian Navy Cmdr. Igor Schvede, commander of the Latvian Navy Cmdr. Juris Roze and commander of the Lithuanian Navy Rear Adm. Kestutis Macijauskas spoke about the activities of the naval forces over the past year during the meeting on 13 and 14 February.
In addition, changes in the BALTRON annual plan, increasing the efficiency of the squadron and projects related to BALTRON were discussed. The navy chiefs also spoke about using BALTRON in the preparation of ships for joining the NATO mine countermeasures group.
Other topics included possibilities for joint training of warrant officers and setting up a joint divers unit for the period of MCM operations and exercises, matters related to a Baltic naval staff officers' course in Latvia, logistics and support.


President Ilves Assigned the Rank of Lieutenant General to the Commander of the Defence Forces

Feb 19
- The members of the National Defence Council that gathered in Kadriorg on 18 February supported the proposal by President Toomas Hendrik Ilves to assign the rank of Lieutenant General to Ants Laaneots, the commander of the Defence Forces.
“Ants Laaneots is one of the men who re-established the Estonian Defence Forces and one of its most respected and experienced officers,” said the head of state. “During Laaneots' term of service, the problems facing our national defence have been understood to a greater extent, and as the commander of the Defence Forces, Ants Laaneots has helped to improve relations between the leadership of the Defence Forces and the civil leadership of our national defence. These are positive developments and I wish him the strength to continue on the same path.”
President Ilves also expressed his delight that Estonia will get a new general for the 90th anniversary of the Republic of Estonia-at the recommendation of the commander of the Defence Forces, the head of state assigned the rank of Brigadier General to Valeri Saar, the head of the Air Force.


DOMESTIC NEWS

Estonia's New Justice Chancellor Lists Fundamental Rights, Legal Clarity as his Priorities

Feb 13
- Barrister Indrek Teder, whom Parliament appointed as Estonia's next chancellor of justice on Tuesday, named the protection of people's fundamental rights and legal clarity as his priorities in his new office.
The third key issue that Teder intends to look at is the right balance between the functions of ombudsman and constitutional supervision in the activities of the chancellor of justice.
“I think that it should be fifty-fifty, but it depends on the quality of laws,” Teder said.
The parliament endorsed a proposal from President Toomas Hendrik Ilves to appoint Teder as Estonia's next chancellor of justice with votes 80 to 3 and one abstention in a secret ballot on Tuesday.
Teder, 50, is a member of the board of the Teder, Glikman ja Partnerid law office and sits on the professional suitability assessment committee of the Bar. Teder said he would divest his holding in the law firm before assuming the new office.
Teder's appointment takes effect on March 7, when the seven-year term of incumbent Allar Joks as chancellor of justice expires.


ECONOMIC NEWS

Currency Rates in Kroons
(Bank of Estonia)


Unemployment Rate in Estonia at 4.7 Percent in 2007

Feb 14
- The annual average unemployment rate was 4.7 percent and employment increased moderately in Estonia in 2007, the Statistical Office reports.
Last year's unemployment rate is the lowest in the last 15 years, data by the Statistical Office show.
In the fourth quarter of 2007, unemployment dropped to 4.1 percent.
Joblessness decreased last year in all age groups, the most among youths. The unemployment rate of individuals aged 15 to 24, which in 2004 was still over 20 percent, dropped to 10 percent last year.


Wholesaler Tridens Expands to Latvia, Lithuania

Feb 13
- The Estonian wholesaler Tridens has expanded to Latvia and Lithuania by launching sales, marketing and distribution logistics subsidiaries in the two countries.
Tridens started operations in Latvia in the newly-opened logistics centre Dominante Park on the outskirts of the capital Riga. Tridens Latvia, the sales and marketing company, and the separate distribution logistics arm Trialto Latvia employ at present about 50 people.
The sales and marketing firm Tridens Vilnius, based in the Lithuanian capital, has a staff of 10.
The Latvian and Lithuanian subsidiaries are for the time being offering a slightly smaller selection of goods than the parent company, but plans are to harmonise the product portfolio in all the three countries over the course of time.
Tridens is a wholly Estonian, equity-based wholesale company whose portfolio includes a large choice of alcohol and tobacco products and sweets.
Tridens mediated nearly 1.6 billion kroons' worth of goods to domestic customers in 2007. The company employs 132 people. The staffs of all the Baltic and Estonian subsidiaries included, the company gives work to almost 360 people.


BLRT Group's Sales up by Third in 2007

Feb 13
- The Estonia-based shipbuilder BLRT Grupp has posted unaudited sales of almost 4.6 billion kroons for 2007, up by 31.1 percent from 2006.
The 2007 profit reached 550 million kroons, which is 32.7 percent more than a year ago, the company said.
The results of the group's subsidiaries have been consolidated into the profit figure but are not included in the sales figure, BLRT said.
The group's investments exceeded 413 million kroons last year. Profitability of economic operations was 11.9 percent.
The fastest growth was recorded in the manufacture of metal structures, which expanded 2.97-fold. Providing of stevedoring services surged 2.58-fold.
The group expects to cross the 5.5 billion kroon mark in turnover in 2008.
The BLRT group is comprised of 65 companies in Estonia, Latvia, Lithuania, Ukraine, Russia, Finland and Norway. The Estonian-equity company has created nearly 2,000 jobs in Estonia and about 1,600 in other countries.


Profit of Hansapank up by 28 pct on year

Feb 14
- The Estonian business unit of Hansabank Group netted 225.3 million euros last year, 28 percent more than in the previous year.
Last year Hansapank issued 7.533 billion euros' worth of loans in Estonia, up by 25 percent year-on-year. Deposits increased by 15 percent to 4.720 billion euros.
The ratio of net provisions to the loan portfolio grew from 0.43 percent in the third quarter to 0.55 percent in the fourth quarter. A year earlier the ratio was 0.22 percent.


Harju Elekter Swells Profit by 79 Percent Last Year

Feb 19
- The Estonian electrical appliances maker Harju Elekter earned a net profit of 84.5 million kroons in 2007, 79 percent more than the year before.
The industrial group reported that its operating profit grew by 14 percent to 51.5 million kroons. The sales proceeds of the group were 17.7 percent higher, totalling 732 million kroons.
In Q4 the sum total of the group's earnings totalled 207 million kroons with 4.5 million kroons of net profit. The fastest growth rates in Q4 were in the Estonian segment. Compared with the same quarter last year the sales proceeds of the Estonian companies increased by 35.8 percent.
A favourable situation in the Finnish economy, growth of the respective economic sector as well as the positive image of the Finnish subsidiary Satmatic Oy ensured a constantly high volume of sales orders in the Finnish segment. In Q4 the sales volume was 25 percent higher than in Q4 2006.


Tallinn Airport: Profit up by 9 Percent in 2007

Feb 19
- According to preliminary information the profit of Estonia's AS Tallinna Lennujaam (Tallinn Airport) amounted to 103.4 million kroons in 2007, nearly 9 percent more than the year before.
The airport said the turnover of the company was 387.8 million kroons last year, 56.4 million kroons more than in 2006.
Last year the airport invested a total of 130 million kroons into the improvement of infrastructure and acquisition of navigation equipment, of which 58 million was financed from the European Regional Development Fund and 72 million kroons came from the company's own resources.


Postimees Newspaper Doubles Profit in 2007

Feb 18
- Postimees, the Estonian daily newspaper owned by the Norwegian media group Schibsted, saw its profit soar 99 percent year on year to 20.5 million kroons (EUR 1.3 mln) in 2007.
Sales, at 261 million kroons, were more than 29 percent bigger than in 2006, the company announced.
Eesti Meedia, the parent company of Postimees, posted an EBITDA of 46 million Norwegian kroner and sales of 430 million kroner for the year.
With a print run of 68,000 copies in January, Postimees ranks as Estonia's largest newspaper.



CULTURAL NEWS

Foreign Minister Presents Musical Gift to Iceland for Republic of Estonia's 90th Anniversary

Feb 17
- Estonian Foreign Minister Urmas Paet presented a musical gift to Iceland on the occasion of the 90th anniversary of the Republic of Estonia.
The Estonian Philharmonic Chamber Choir, directed by Daniel Reuss, premiered “Three Icelandic Songs” (“Kolm Islandi laulu”) by Tõnu Kõrvits with Icelandic lyrics. The concert also included works by Cyrillus Kreek, Arvo Pärt, and Mart Saar.
Similar concerts will also take place in Denmark, Finland, Sweden, and Great Britain. “These four nations played a crucial role in Estonia's declaration of independence 90 years ago,” said Foreign Minister Paet. “We are thanking Iceland for its support when Estonia's independence was restored in 1991,” he added. On 22 August 1991, Iceland was the first nation to recognise Estonia's re-independence.
For the concerts, Estonian composers were asked to write special works that will be symbolically given to the five countries. These musical gifts were created with support from the Ministry of Culture and the Foreign Ministry.





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