Estonian Review September 26 - October 3, 2006

05.10.2006

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FOREIGN NEWS
DEFENCE NEWS
DOMESTIC NEWS
ECONOMIC NEWS

FOREIGN NEWS

High-ranking State Department Official Hails Estonia's Contribution to Georgia Army Reform
Oct 3 - US Deputy Assistant Secretary of State for Europe and Eurasia, Mark Pekala, has voiced recognition of the contribution of Estonia to the defence reform in Georgia.
Pekala, on a two-day visit to Estonia, spoke during his meeting with the secretary general of the Estonian Ministry of Defence, Lauri Almann, about international operations in Afghanistan and Iraq. Also spoken about was defence assistance to Georgia and transformation of NATO.
Pekala described Estonia as a strong ally in the missions in Afghanistan and Iraq and voiced recognition of Estonia's contribution to the defence reform in Georgia.
Almann said Estonia was taking its commitments in Iraq and Afghanistan very seriously and continued to support Georgia's Euro Atlantic aspirations.
In Pekala's meeting with Estonian Foreign Minister Urmas Paet the two officials discussed the prospect of visa-free travel, the upcoming visit by President George W. Bush to Estonia, the NATO summit in Riga, cooperation between the EU and the United States, and development of the Estonian economy.
Paet and Pekala agreed that for maintaining the relations between Estonia and the United States, contacts between people had to be intensified. This would be significantly helped by visa-free travel, Paet said.
"Visa-free travel regulations with the US are the expectation of the Estonian public," Paet said.
Pekala said the United States regards expanding the visa waiver program to cover citizens of Estonia as very important.
Among the other topics discussed during the meeting was cooperation between the EU and the United States. Paet said the EU-US tandem was the most efficient tool to promote democracy, and that an important component was EU-NATO cooperation.

Formin Expresses Concern over Escalating Tension between Georgia, Russia
Sep 30 - Estonian Foreign Minister Urmas Paet expressed concern over the escalating tension between Georgia and Russia.
Suspicions of breach of law need to be dealt with in agreement with the principles of the rule of law, Paet said.
"All breaches of law, including accusations of spying, have to be handled strictly in keeping with the rule of law," he underlined.
The minister at the same time urged the sides to take care to avoid any statements which are open to interpretation as interference in the other country's internal affairs or a threat to use force.
Peaceful settlement of the conflict is in both sides' interest, Paet said. "In such a tense situation close diplomatic contacts between Georgia and Russia are vital," he said.
It would be regrettable if Russia avoided such contacts, the minister added.
The relations between Georgia and Russia became tense after the Georgian authorities detained several Russian citizens on suspicions of spying.

Estonian MP Calls for Solution to Georgia-Russia Tension
Sep 29 - The European Union and its member states including Estonia should show more initiative to find a political solution to ease the tension between Georgia and Russia, the vice-chairman of the Estonian parliament's standing Foreign Affairs Committee says.
Marko Mihkelson said the EU should not put up with Russian provocations and interference in Georgian internal affairs in the last few weeks.
Moscow's interference is indicated both by the detention of Russian officers in Georgia and support for the Georgian opposition aimed at bringing the domestic situation in the Caucasian country to the brink of a crisis, he said.
In the lawmaker's words, Russia is deliberately building up tension so as to create an image of Georgia as an unreliable country fraught with internal crises which is not ready for substantive talks on NATO membership.
Protecting the fledgling Georgian democracy is vital for the survival and emergence of the democratic value system in the territory of the former Soviet Union, Mihkelson said, and therefore it is very important for the EU to send a firm signal that such provocative conduct on Russia's part is not in keeping with the Russia-EU strategic partnership.

Estonia's Laar in Favour of EU Mediation in Tensions between Georgia, Russia
Oct 2 - Mart Laar, the former prime minister of Estonia now serving as economic adviser to Georgia's President Mikhail Saakashvili, has called on Georgia and Russia to maintain peace and said he is in favour of mediation by the European Union.
In his remarks Laar described as a breakthrough an offer by the EU's foreign policy chief Javier Solana to act as a mediator in negotiations between Georgia and Russia.
"That is excellent, and I would like to see active foreign policy also on the part of Estonia as a member state of the EU," Laar said.
Laar said the situation concerning Georgia has been tense already for quite some time. He said that the arrest of Russian intelligence officers was intended by the Georgian authorities as a signal to Russia that it could no longer do as it pleased in Georgia.
Laar advised Georgia to maintain peace and said that if Russia maintains common sense to at least some degree, everything would pass peacefully.

Estonian Official to Help Georgia Carry out Prison Reform
Oct 2 - Kristel Varm, adviser to the prisons' department of the Estonian Ministry of Justice, began a two-year stint coordinating prison reform in Georgia.
Varm will perform the duties of prison reform coordinator as part of the EU programme for the reform of the criminal and penal management system in Georgia.
Varm's responsibilities will include improving security in the country's prisons, reducing possibilities of escape, preventing unrest, selecting prison personnel and reorganizing the system of training.
Justice Minister Rein Lang said that for Estonia, supporting Georgia in the present situation was especially important.
"For us it is of particular importance to support the building of Georgia's law enforcement system," Lang said.

Queen to Remember British Soldiers, Meet Estonian Public
Oct 3 - Queen Elizabeth II of Britain will meet people in Tallinn's Town Hall Square and pay her respects at a memorial to British seamen during her state visit to Estonia later this month.
The state visit is of historic significance because it will be the first ever visit to Estonia by a British monarch. The visit underscores the long-term and close relationship between the United Kingdom and Estonia, which got its start during the Estonian War of Independence (1918-1920).
Following a festive reception and a meeting with the Estonian president, the events scheduled for the opening day of the visit on Oct. 19 include a concert sponsored by the British ambassador as well as a reception by the royal couple in the Kumu art museum. A state dinner hosted by the Estonian president and his wife will close the first day.
On Oct 20 the queen will observe a moment of silence in front of a memorial to servicemen of the Royal Navy on the wall of the Estonian Maritime Museum, after which the royal couple will meet with people in the framework of an open-air concert in Town Hall Square.
Prior to the farewell ceremony, past and present defence cooperation between Estonia and Britain will be honoured at Tallinn's Old Port.

Europarlt President Apologizes to Nordic, Baltic Countries
Sep 29 - The president of the European Parliament apologized to Nordic and Baltic countries for claiming those countries had not suffered the devastation of war.
Josep Borrell said there is no reason for him to take seriously the more than one million signatures under the so-called single seat initiative as the signatories come from Nordic countries which did not suffer war losses.
The single seat petition calls on the European Parliament to put an end to shuttling between Strasbourg and Brussels and move full time to Brussels. The initiative came from Swedish Liberal People's Party MEP Cecilia Malmström.
Borrell's remark drew fire from members of the European Parliament from Nordic countries, in particular Finland.
The president later on apologized for the remark which might have hurt the feelings of residents of Finland, Denmark and the Baltic states.
He said he is aware that Denmark, Finland and the Baltic States were among the countries which suffered heavily in World War II, adding that when uttering the words he had in mind Sweden and not the Nordic countries in general.
The single seat petition has 1,031,921 signatures at this point. By mid-September almost 400,000 signatures had been collected in the Netherlands, 140,000 in Sweden and Belgium each, and 100,000 in Finland. In Estonia, 595 people had signed the petition by mid-September.

Estonian, Russian National Audit Agencies Sign Cooperation Memorandum
Oct 2 - Chief of Estonia's State Audit Office Mihkel Oviir and the chairman of the Russian Federal Accounts Office, Sergei Stepashin, signed a memorandum of understanding on cooperation between the two audit agencies.
Oviir is on a visit in Moscow to familiarize himself with the work of the Russian federal audit agency, learn about the Russian agency's relations with the parliament and government, as well as its exercising of control over balancing the state budget.
Oviir and Stepashin spoke about possibilities of the two agencies to help solve customs-related problems and fight against corruption and money-laundering.

Anti-Contraband Officers from 33 Countries Meet in Estonia
Oct 2 - Chief investigation and information officers from the national customs agencies of the European members of the World Customs Organization (WCO) met in Tallinn and spoke about current trends in trade in illicit goods and the future of customs.
The high-level meeting of the WCO European Region was attended by 70 representatives from 33 countries and several international organizations, the Estonian Tax and Customs Board said.
It is the first time that the Estonian tax and customs authority has hosted surveillance chiefs of such a high level.
The meeting dealt with the latest trends in trafficking in alcohol, narcotics, cigarettes, strategic and pirated goods. Another important topic will be the future of customs and increasing the role of customs in ensuring security.
The meeting of WCO European Region investigation and information chiefs was held for the 15th time. The previous such meeting took place in Ireland a year ago.

Bulgaria's Border Guard Chief Visiting Estonia
Oct 2 - The director general of the Bulgarian border police, Krasimir Petrov, arrived in Estonia for a four-day visit.
He was scheduled to meet with the director general of the Estonian Border Guard Board, Col. Roland Peets, and tour a number of the Estonian border guard bases.
The main purpose of the visit was to intensify ties between the border services of Estonia and Bulgaria so as to promote cooperation in ensuring the security of the EU's external border in the future.
"With Bulgaria set to join the EU soon, it is extremely important to establish active contacts already today, which would enable us to carry out efficient exchanges of experience and information in the future," Peets said.
The visit marks the first-ever meeting between the border services of Estonia and Bulgaria.

Estonia won't Allow Toxic Waste Ship to Leave Unless Safe - Minister
Sep 30 - The Panamanian-flagged tanker Probo Koala under criminal investigation over a pollution scandal will stay in the Estonian port of Paldiski until Estonia has met its international commitments and it is clear that the ship is 100 per cent seaworthy and poses no threat, the justice minister says.
The Justice Ministry would recur to all levels of authority responsible for tanker safety to determine whether the vessel poses a threat to the health of the crew and the environment, Rein Lang said. "We cannot allow a ship carrying toxic substances to leave Estonia for destinations unknown," he underlined.
State prosecutor Norman Aas met his Dutch colleagues in Oslo on Sep 28 to discuss matters relating to the Probo Koala, and prosecutor Alar Kirs, who is in charge of the criminal probe launched in Estonia, had consultations with Dutch prosecutors and investigators in the Netherlands on Sep 29.
According to Kirs, the Dutch officials have already carried out an extensive inquiry into the ship and the Dutch company that chartered it, and further investigation in Estonia will be conducted in close cooperation with the Dutch authorities.
"We're getting very effective assistance from Eurojust, and Greek officials have been called in, too," said Kirs, in whose words the preliminary proceedings of the criminal investigation have been completed by now.
The Probo Koala, chartered by the Netherlands-based company Trafigura, last month offloaded toxic waste in the Ivorian port city of Abidjan. A local company contracted to dispose of the waste dumped it in several landfills in the city, sparking a health crisis which has claimed eight lives and triggered a spate of health problems.
The Estonian authorities impounded the ship and launched a probe after tests conducted on waste the ship had asked to discharge in this country showed it to have a similar composition to the material discharged in Ivory Coast.

Estonia Counts on EU Help to Dispose of Tanker Waste
Sep 28 - Estonia hopes the European Union will help it dispose of toxic chemical slops from the Probo Koala, the justice minister said; the EU environment commissioner for his part promised European assistance.
"Seeing that Estonia lacks capabilities to recycle this (toxic waste), we certainly hope the European Union will pitch in to eliminate such a great environmental hazard," the minister said in a meeting with visiting Environment Commissioner Stavros Dimas.
Dimas thanked the Estonian government and law enforcement agencies for speedy and productive action to detain the toxic waste ship and said he hopes the Estonian authorities will assist representatives of Ivory Coast too.
"This case is an excellent example of effective international cooperation," he said.
In his words, such joint action helps prevent developed countries' attempts to offload hazardous substances under the guise of ordinary ship waste.
Dimas said the Probo Koala represents a pan-European and even more, worldwide environmental threat whose solution now largely rests on Estonia. The commissioner pledged his support and also the necessary assistance on the part of the EU executive.
Dimas' speedy arrival in Estonia indicates the significance of the Probo Koala case for Europe and the international community, Environment Minister Villu Reiljan said. He underscored the excellent cooperation of the Estonian agencies to detain the ship.
Speedy action was possible largely thanks to the Environmental Research Center's new fuel lab. Completed with the help of co-funding from PHARE this year, the facility is the most modern of its kind in the Baltic States and made test results available within hours, the Environment Ministry said.

Estonia to Have Facilities Built for Beijing Embassy
Oct 3 - The Estonian Foreign Ministry is planning to announce a competition early next year to find the best design for the building of the Estonian embassy in Beijing.
According to tentative plans the architectural competition will be announced at the beginning of 2007 and construction works will start in 2008.
Negotiations are under way now to acquire building rights for 70 years for 2,990.44 square meters of land in the district of the diplomatic corps in the Chinese capital.
The Estonian embassy currently operates from a Beijing hotel.

DEFENCE NEWS

Estonia Can Give Afghan Army 4,000 automatic Rifles - Defmin
Sep 28 - Estonia is ready to contribute 4,000 automatic Kalashnikov rifles to support the armed forces of Afghanistan, Defence Minister Jürgen Ligi told his NATO colleagues at a meeting in the Slovenian town of Portoroz.
Afghanistan asked ministers from NATO countries attending the two-day informal meeting in Slovenia to support the country with weapons and training, the Defence Ministry here said.
"Estonia is prepared to donate 4,000 AK automatic rifles and a commensurate amount of ammunition to supply the Afghan army," Ligi said.
He also confirmed that the Estonian contingent participating in the Afghan stabilization mission will be increased from 79 to 120 soldiers by the end of the year.
Estonian soldiers are serving side by side with British and Danish troops in Afghanistan's Helmand province.
Member countries of the alliance agreed that for the reconstruction of a democratic Afghanistan it is essential in parallel to the military operation to set up an international fund to speed up the country's recovery from the devastation of war, the Defence Ministry said.
The ministers are going to discuss preparations for the Riga summit later this year and also a meeting of the NATO-Russia Council will take place.

Estonia's Defmin Attending EU Ministers Meeting
Oct 2 - Estonia's Defence Minister Jürgen Ligi took part in a two-day informal meeting of EU defence ministers in Finland.
On the first day of the meeting, EU-led operations in Bosnia, Sudan's Darfur and Congo were talked about.
Separately discussed was the EU operation Althea in Bosnia and Herzegovina. Estonia is taking part in Althea with up to 34 personnel since last year. For the first time in the history of such missions, the Estonian mission unit is made up of personnel of the Defence League volunteer corps.
Also talked about on the first day was further developing of the EU's military capabilities.
Ligi said that developing of the defence forces had to be based on common rules and fulfil the goals of the EU and NATO.
On the second day of the meeting a session of the steering committee of the European Defence Agency was held, focusing on the agency's budget and long-term visions of defence.
Also discussed were civilian-military coordination as well as assistance for the Lebanese armed forces.

Estonian Servicemen Detain Leader of Hostile Group in Iraq
Oct 3 - Members of the Estonian infantry platoon ESTPLA-13 serving in Iraq have together with US units detained the leaders of a local group which had staged asymmetric attacks on coalition forces.
The man wanted by the coalition forces was detained in the course of a patrol operation which ended last week, on the basis of information received from locals.
It was established on the basis of statements by other detainees and locals that he was the leader of a local group who, among other things, had organized attacks by groups of up to ten men against coalition forces over the past month, as well as attacks using self-made explosive devices.
ESTPLA-13 started service in a new area of responsibility in Iraq on Sept. 25 following a two-week holiday at home. The current task of the Estonian unit is to reinforce coalition forces near Hor-al-Bosh, a village of about 3,000 residents, as well as to boost the presence of coalition troops.
The first patrol operation by ESTPLA-13 lasted six days.

Estonia, Georgia to Conclude Information Protection Agreement
Sep 28 - Estonia is set to conclude an agreement on the exchange and protection of classified information with Georgia which the government says opens new opportunities for bilateral cooperation in defence.
The government approved the accord and gave secretary general of the Defence Ministry Lauri Almann powers to sign it on behalf of Estonia.
The purpose of the accord is to create common rules for the protection of classified information exchanged between the two countries and their entities under public and private law, an explanatory letter accompanying the government resolution says.
The agreement will in the government's opinion offer new opportunities for defence cooperation and at the same time shows both countries' serious interest in intensifying bilateral defence relations.
The costs of the implementation of the agreement will be covered from the budget of the Defence Ministry.

DOMESTIC NEWS

Estonian Govt Approves Law on Rogue Planes
Sep 28 - The Estonian government approved legal amendments allowing the downing of passenger aircraft hijacked by terrorists and posing a security threat.
The approved bill makes changes in the Peacetime National Defence Act which allow to stave off the threat of terrorism from a hijacked, or rogue, plane.
Awareness of the threat of civilian aircraft used for terrorist purposes rose sharply after the 2001 terrorist attacks and the need to amend the law arises also from NATO requirements, an explanatory letter to the bill says.
The amendments drafted by the Defence Ministry allow the defence forces to be used to ward off the threat posed by a hijacked plane. Due to the specific nature of the rogue threat, the decision-making procedure must permit the decision to be made speedily and allow for political responsibility, the letter says.
Estonia lacks fighter jets of its own to attack a rogue. The fighters operating under NATO's chain of command do at present not have the right to use force against civilian aircraft.
Estonia is at present the only NATO member state that has not laid down rules for how to render harmless a rogue.

Estonian Parlt Passes Law on Electronic Surveillance of Convicts
Sep 27 - Estonian lawmakers passed a law enabling electronic surveillance of convicts.
The law was adopted with 63 votes for, one against and one abstention in the 101-member parliament.
The law enables courts to impose electronic surveillance for a period of one to 12 months on convicts who at present are not eligible for parole either because of their conduct or the risks involved.
The system uses electronic monitoring ankle or wrist bracelets that allow locate a person to be positioned at any moment.
Each convict will have fixed periods of time when he or she is allowed to leave home but will have to stay in for the rest of the time. If a person under surveillance leaves home in prohibited hours a computer at the surveillance centre to which the monitoring device is hooked up will send a corresponding report to the duty officer.
Initially electronic surveillance is planned to be applied to convicts released on parole but if the system proves successful it could be considered also as an alternative for detention and short-term arrest, the Justice Ministry has said.
Justice Minister Rein Lang said earlier the advantage of electronic surveillance over imprisonment is that it allows convicts to go out to work and make up for the material loss caused by them. It also helps preserve criminals' social ties and is cheaper than locking them up.
The Justice Ministry's budget for 2007 earmarks 9.5 million kroons (EUR 607,000) for implementing the system which allows electronic surveillance of 200-250 convicts a year.
The law will enter into force on Jan. 1, 2007.

Estonian Parlt Stands Firm on Property Restitution
Sep 27 - The Estonian parliament passed in unchanged form amendments to the Principles of the Ownership Reform Act. The same law was vetoed by the president last week.
The law was adopted with 51 votes with 35 lawmakers voting against.
The president will now have to either promulgate the law or turn to the Supreme Court to have it declared unconstitutional.
The passed amendments create the legal basis for returning property to people of mostly German descent who repatriated to Germany under a Soviet-German deal in 1940 and 1941. Most Baltic Germans left the region before World War II.
President Arnold Rüütel said on Sep 22 that he vetoed the law because in his opinion it was in contradiction with the constitutional principles of legal clarity and legal protection.

Most Estonians Happy About Ilves Victory in Presidential Election - Poll
Sep 27 - More than two-thirds of respondents in a survey carried out by Faktum & Ariko pollsters were happy about Toomas Hendrik Ilves being elected the next president of Estonia.
Forty per cent of the people polled said they are "very satisfied" and 28 per cent, that they are "somewhat satisfied" with Ilves' victory.
Those dissatisfied with the election outcome made up 15 per cent of respondents, including 8 per cent "somewhat" dissatisfied and 7 per cent "very dissatisfied".
About 17 per cent of the polled gave no answer.

ECONOMIC NEWS

Currency rates in kroons
(Bank of Estonia)

Estonia's Q2 GDP Grows 11.7 Per Cent on Year
Sep 28 - Estonia's gross domestic product (GDP) in the second quarter of this year was 11.7 per cent bigger than in the same period a year ago, preliminary estimates by the Statistical Office show.
The second-quarter GDP measured in current prices was 51.8 billion kroons (EUR 3.31 bn), and 40.5 billion kroons in constant 2000 prices. The GDP dynamics was influenced mainly by domestic demand and an increase in the value-added of the non-financial corporations sector.
By economic activities, just like in the preceding quarter, GDP growth was mainly influenced by real estate, renting and business activities, manufacturing, wholesale and retail, and transport, storage and communication. These activities accounted for 63 per cent of the total value added.
In the second quarter of 2006, compared to the same period in 2005, the value added at constant prices increased the most in financial intermediation (23.4 per cent), construction (21.5 per cent), real estate, renting and business activities (16.0 per cent), manufacturing (12.7 per cent), and in wholesale and retail (11.7 per cent).
The value added decreased only in agriculture, hunting and forestry.
At constant prices, private consumption expenditure increased by 14.6 per cent and gross fixed capital formation by 10.0 per cent, contributing to higher domestic demand (11.5 per cent).
The export of goods and services increased faster than imports (respectively 16.4 per cent and 15.4 per cent), while the ratio of net exports to GDP decreased compared to the second quarter of the previous year.

Estonia's GDP Figures Reveal Improved Balance - Analysts
Sep 28 - The preliminary second quarter economic growth data released by the Statistical Office contains positive signals indicating increased balance of the Estonian economy, analysts say.
Maris Lauri, of Hansabank, said the GDP growth rate in the second quarter was in line with expectations, also pointing at slowed-down growth in demand components such as private consumption and investments, but also export and import.
"Just as expected, the real-value ratio of exports to imports proved a significantly better external balance than the current prices," Lauri said.
An analyst with Sampo Pank, Anne Karik-Uustalu, said that if the balance of payments, for instance, had shown economic growth in the second quarter as relying more on domestic demand than in the preceding quarter, then actually growth in the second quarter was divided between domestic economy and the export sector in a more balanced manner.
"The contribution of net export to growth in the second quarter was practically neutral compared with the first quarter, when net export was strongly in negative territory," Karik-Uustalu said.
While according to Karik-Uustalu economic growth is about to slow down somewhat in the second half of the year, Lauri estimates growth will continue largely at the present rates.
Annual GDP growth, in the estimate of Karik-Uustalu, will come in at 10 per cent, whereas in Lauri's estimate the eventual figure will be 10.5 per cent or higher. Both agreed that the Estonian economy would grow at a rate of approximately 9 per cent next year, provided that positive developments continue.

August Industrial Output up 10.6 pct on Year
Sep 29 - Industrial production in Estonia in August did not change significantly compared with July but increased 10.6 per cent compared with August of the previous year, the Statistical Office said.
Compared with July, the seasonally adjusted industrial production increased 0.5 per cent.
Compared with August 2005, output increased 10.6 per cent in industry as a whole and 9.6 per cent in manufacturing. The growth in manufacturing was mainly the result of an increase in the production of food, the sector with the biggest share.
In the food sector, processing and preserving of fish and fish products increased rapidly, following a recession in previous years. The increase in the production of fish produce was mainly was the result of a rapid increase in exports.
Having a considerable effect on the outcome of the food sector was the production of beverages, which increased in terms of export as well as in sales on the Estonian market, with a slightly faster uptrend in exports.
Production of building materials increased by 20 per cent compared with August of the previous year and was the next sector by volume after food, considerably influencing the outcome for manufacturing. The rapid increase in the production of building materials is directly linked with the major increase in construction activity, the Statistical Office said.
The production of electric machinery and equipment, and the production of chemical products and furniture also contributed largely to the increase in the manufacturing sector.
The biggest increase in comparison with August 2005 occurred in the production of rubber and plastic products, but also in the production of computers. Due to the small share of those sectors in manufacturing output they had only a minor effect on the dynamics of the manufacturing sector.
There was a slight slowdown in August in the manufacture of wood, which has in earlier periods been one of the engines of the Estonian economy.
Estonia's industrial output has been in an upward trend since 2000.

August Retail Sales Increase 19 pct on Year
Sep 29 - Retail sales by Estonia's retail trade enterprises grew 19 per cent in August this year compared with August 2005, measured in constant prices, the Statistical Office said.
Retail sales of goods by retail trade enterprises totalled 3.9 billion kroons (EUR 249 mln) in August. The growth was faster than in the previous 12-month period, when the rate of increase was 13 per cent.
A faster than average increase occurred in August in the stores selling manufactured goods (31 per cent). In grocery stores, where the rate of increase has been stable since the beginning of the year, sales increased 10 per cent compared with August 2005.
Due to their large share, grocery stores account for about 35 per cent of the increase in sales by retail trade enterprises.
As a result of high demand, stores selling household goods and appliances, hardware and building materials continue to be successful in Estonia. Retail sales by such stores increased by 46 per cent compared with August 2005.
Those stores account for 30 per cent of the total increase in the sales of retail trade enterprises.
In stores selling textiles, clothing and footwear a positive trend continued, with sales surging 44 per cent compared with the same month of 2005. Other specialized stores, non-specialized stores (selling predominantly industrial goods) and mail order sale enterprises were also successful, posting rates of increase of 28 per cent, 24 per cent and 20 per cent, respectively.
Compared with July 2006, retail sales by retail trade enterprises as a whole stayed on the same level.
In August net sales by motor trade enterprises totalled 3.7 billion kroons, which is almost a billion kroons more than in August 2005. Compared with August 2005, the net sales of enterprises selling motor vehicles and automotive fuel increased by one-third in current prices, and by 7 per cent compared with July 2006.

Estonia Seeks to Raise Use of Bioenergy, Biomass
Oct 3 - A commission formed to map out a development plan to promote the use of bioenergy and biomass held its first meeting at the Estonian Agriculture Ministry.
The target is for biofuel to make up 5.75 per cent of liquid transportation fuel and green electric power and 22 per cent of electricity consumed by the year 2010, the ministry's chief specialist Einar Kikkas said.
The work group which besides officials from the Agriculture Ministry includes representatives of the Economic Affairs, Education and Science, Finance, and Environment ministries as well as the State Chancellery is supposed the submit the development plan by the end of the year, Kikkas said.
Researchers, producers and entrepreneurs will also help draw up the plan.

Estonian Banks Have Issued 1.56 mln Bankcards
Oct 3 - Estonia's five largest commercial banks had by the end of September issued a total of 1,561,510 bankcards of which 1,218,209 were debit cards and 343,301, credit cards.
During September the banks issued 17,962 new debit cards and 8,725 credit cards.
New bankcards issued in the first nine months of the year number 161,397.

Hansabank to Refer to Swedbank in Its Name in Future
Sep 29 - From now on Hansabank will start using a text reference to its Swedish parent bank Swedbank next to its logo in information and advertising materials.
The reference will be introduced gradually in all the Baltic States starting from October.
"Reference to Swedbank shows Hansabank's being part of a larger banking group. We have joined our forces and set ourselves the goal to create the leading financial institution in the Nordic and Baltic region. Thus it's in every way a logical step," the CEO of Hansabank Group, Erkki Raasuke, said.
The second largest Estonian bank, Ühispank, uses the name of its Swedish parent as part of its name, which officially is SEB Eesti Ühispank.
Swedbank Group has in all 8.8 million retail customers and 441,000 corporate customers in Sweden, Estonia, Latvia and Lithuania.

Estonia's Merko Gets High Award for Hansabanka HQ
Oct 2 - The international real estate federation FIABCI declared Estonia's Merko, builder of the Hansabanka headquarters in Riga, winner of its annual real estate prize in the business and industrial premises category.
The same award has earlier been given to structures such as the Petronas Twin Towers in Malaysia and Prudential Tower in Singapore.
This is the first time that a FIABCI prize has been awarded to a Baltic recipient, and the third time for a structure in the Nordic countries.

Merko to Build Large Furniture Store in Riga
Oct 2 - Merks, the Latvian subsidiary of the Merko construction firm, and MKEE, the Latvian subsidiary of E.L.L. Kinnisvara (E.L.L. Real Estate), signed a contract for the construction of a 28,000 square meter furniture store in Riga.
The estimated cost of the contract is 11.9 million lats (EUR 17 mln) plus income tax.
The deadline by which the project must be completed is September 2007.

Estonians Establishing Waste Processing Co in Ukraine's Dnepropetrovsk
Sep 27 - Estonian entrepreneur Jüri Jaakson and former Tallinn municipality environment chief Aap Mumme are setting up a company in collaboration with local authorities to collect and process construction waste in the Ukrainian industrial city of Dnepropetrovsk.
Of the company called Stroi Othody (Construction Waste), 26 per cent belongs to the city whose population equals that of Estonia, and the rest to Mumme and Jaakson in equal shares.
The city has approved of the business of Stroi Othody and rented to the company a two-hectare plot for 30 years on which the recycling base will be established.
Business is expected to start next spring.

Estonia's Island Logging Company Sets up Subsidiary in Sweden
Sep 29 - To continue its profitable business in the removal of storm-felled timber in Sweden, the HM Puidukaubandus (HM Wood Trade) company based on the Estonian island of Hiiumaa last week established a subsidiary in Sweden together with a local fuel company.
The venture is called Dago AB.
Andrus Ilumets, board chairman and main owner of HM Puidukaubandus, said they were the
only foreigners so far to have registered a business in Sweden to be able to continue work in storm-damaged forests after the end of the emergency situation as well.
As an exception, the Swedish government permitted until the end of and August 2006 to eliminate storm damage to the country's forests using foreign labour and vehicles registered in foreign countries.
Ilumets said the company had sought Swedish license plates for three of its wood trucks and that the vehicles would start transporting wood for the Sodra group in southern Sweden once the license plates had been issued.
Led by HM Puidukaubandus, a consortium consisting of seven Estonian forestry companies, worked in Swedish forests last year, with a workforce of around 120 loggers and drivers. Altogether about 200 people from Estonia worked in storm-damaged forests in Sweden in the spring and summer of 2005.
Export of the wood-cutting service made up 82.6 per cent of the sales of HM Puidukaubandus in 2005, or 194 million kroons (EUR 12.4 mln). The company's profit amounted to six million kroons.
Dago intends to take part in logging tenders in Sweden next spring, Ilumets said.

EUR 8.3 mln Railway Logistics Centre to be Built near Tallinn
Sep 29 - Tegeo Grupp is about to open a 130 million kroon (EUR 8.3 mln) railway and transport logistics centre at Lagedi to the east of Tallinn in November.
Rikets, the operator of a chain of florist shops which is among the owners of Tegeo, is meanwhile planning a second logistics centre to serve the port of Paldiski to the west of the capital.
According to the Krediidiinfo database Tegeo Grupp is owned in equal shares by Rikets, Janek Vanaveski, and a company by the name Baltest Eksperdid.
The sole owner of Rikets, Raivo Hermlin, told that the investment in the 75,000 square meter logistics centre at Lagedi will total 130 million kroons in the first phase.
The total size of the logistics centre's areas under building will be 55,000 square meters. Right now existing buildings covering a total of 5,000 square meters are being renovated.

AGA Bringing Intl Customer Support Centre to Estonia
Sep 27 - The international gas supplier AGA has decided to relocate its customer support service for the Nordic region in Tallinn.
Starting from January a part of the services for customers in Sweden, Norway and Denmark will be provided from Estonia, with other countries to be added later. The customer support centre will open in November, AGA said.
The company expects the new centre to enable it to offer more efficient and high-quality customer service.
AGA has nine customer support centres in the Nordic countries, one in each country. The centres together employ 120 people and hire additional staff seasonally.
AGA is part of the global gas supplier Linde Group.
Estonia on the Lookout for Developer for State's Mobile Services Infrastructure
Sep 28 - The Estonian Informatics Center has launched a public procurement tender to develop infrastructure for wireless communications between the state and the public.
The technical solution is intended to enable state and public sector institutions to offer services meant for mobile telephone users.
The goal of the tender is to create central software and a technical framework for state institutions to introduce services to inform people via SMS and MMS, sending of SMS and MMS messages, and ordering and using of SMS texting services to be offered by state institutions to users of the state's online portal eesti.ee.
The purchase will be financed from the EU structural funds.

Enterprise Estonia Takes out Supplement Promoting Estonian Economy in Finnish Paper
Sep 29 - Enterprise Estonia, the state foundation created to promote Estonia's business and export, has ordered supplement showcasing the Estonian economy to be published in Finland's Kauppalehti business newspaper.
The winner of the tender, InPress Suomi, has asked 280,000 kroons (EUR 17,900) for publication of the newspaper supplement.
The 16-page supplement will present Estonia as a country of innovation and investment, and as a travel destination. Comments will be taken from foreign investors, while local entrepreneurs will speak about their products.
The supplement will have a circulation of 81,000.
Kauppalehti has over 240,000 readers daily.

August Electricity Sales by Eesti Energia up 11 pct on Year
Sep 28 - Sales of electricity by Eesti Energia on the domestic market totalled 458 gigawatt-hours in August, an increase by roughly 11 per cent over the same month a year ago, the state-owned energy utility said.
Overall economic growth continues to be the main factor behind the increase in electricity sales, the company said.
Open-market sales, or sales to large corporate customers, grew by nearly a half or 20 gigawatt-hours in comparison with August 2005. The increase was the result of the addition of a new large customer, the company said.
Sales on the closed market came to 17 gigawatt-hours, a 5.5 per cent improvement on the same period a year ago. That included a seven per cent increase in sales to household customers and a five per cent increase in sales to corporate customers.

More than 143,000 Passengers Pass Through Tallinn Airport in September
Oct 2 - Estonia's Tallinna Lennujaam (Tallinn Airport) served 143,473 passengers in September, 7.6 per cent more than in the same period last year.
In January-September this year the number of passengers passing through the airport increased by 11.9 per cent to nearly 1,175 thousand people.
Last month, Tallinn Airport handled 346.1 tons of goods, 47.7 per cent less than in September 2005. Since the beginning of the year until the end of September, the airport handled a total of 6,620.6 tons of goods, 2 per cent more than in the same period last year.
The airport handled 66.6 tons of mail in September and 609.3 tons in January-September. Mail handling increased by four per cent compared with last year, but the year-on-year figure for September was unchanged.

Passenger Train Service between Estonian Capital, St. Petersburg to Resume in March
Sep 30 - Estonia's transport concern GO Grupp plans to resume next March passenger train service between Tallinn and St. Petersburg, Russia that was discontinued in 2004 due to lack of passengers.
GO Grupp has concluded an agreement on launching traffic with Russia's October Railway.
Trains will depart from Tallinn every morning, the chief executive of the group, Aare Kilp said.
A delegation from St. Petersburg that visited Tallinn this week hailed resumption of the service between the two cities as instrumental in promoting tourism. Hundreds of St. Petersburg residents desiring to spend the weekend in Tallinn may find a train trip more comfortable than travelling by bus.

Alcohol Tax Seals to Become Mandatory in Estonia
Oct 1 - Strong alcohol can now be sold in Estonia only in bottles bearing a revenue stamp.
The Tax and Customs Board issued 11.7 million revenue stamps.
While the first bottles of strong alcohol bearing stamps appeared in stores starting from July 1, retailers were given a three-month transition period during which both stamped and unstamped bottles could be sold.
Unstamped products had to be removed from shelves by Oct 1 at the latest.