Estonian Review E E S T I R I N G V A A D E VOLUME 18 NO 46 NOV 26- DEC 2, 2008

FOREIGN NEWS FOREIGN NEWS President Says Baltic Sea Strategy Must Be Open To Change 26 November - The Baltic Sea strategy must be flexible and remain open to changes both in the European Union and on the world scene, while paying special attention to regional integration and free movement of knowledge, the Estonian president says. Addressing a conference in Tallinn dedicated to the Baltic Sea Region Strategy, Head of State said the EU membership of Poland, Lithuania, Latvia and has practically turned the Baltic Sea into an inland sea of the bloc. He said this means an improved environment for finding solutions to regional challenges which in turn should lead to The NATO foreign ministers in Brussels, 2 December NATO significant progress in the EU as a whole. Paet: NATO’s Close Co-operation with Ukraine The region has a wide range of problems, starting with the environment and the economy and Georgia Will Continue and ending with education and innovation, not to 2 December - Foreign Minister Urmas Paet participated mention social and cultural issues, Ilves said. in a meeting of the NATO foreign ministers in Brussels. In his words, the Baltic Sea strategy has to be The foreign ministers discussed further co-operation with open to changes that may change strategic Ukraine and Georgia and relations with Russia. priorities. Estonia is currently focusing on three The NATO foreign ministers emphasised the need to policy areas: economic and spatial integration, implement the decisions of the Bucharest summit as well as the marine environment and shipping, and a the importance of adhering to the values that form the knowledge-based society. backbone of the alliance. Foreign Minister Paet stated that Integration of the western and the eastern democratic nations that fulfil requirements should have the parts of the Baltic Sea deserves special attention opportunity to join NATO in the future. as the mainstay of the bloc's economic According to Paet, Georgia and Ukraine have fulfilled the integration -- free movement of goods, capital, requirements set by NATO and shown a firm desire to people and services -- is not working properly continue fulfilling tasks to reform their nations. “Therefore yet, Ilves said. Connection of power networks Georgia and Ukraine would be ready to join the Membership and improvement of the energy infrastructure to Action Plan (MAP). However, since the MAP, which was create a well-functioning internal energy market initially created as a technical instrument, is now overly is a crucial field of co-operation, and full politicised, they must continue to fulfil the Bucharest summit liberalisation of the services sector is another. decisions within other existing formats,” said Paet. The Thirdly, a knowledge-based society needs foreign minister stated that NATO’s close co-operation with particular attention, Ilves said. "Our wish is to Ukraine and Georgia must continue within the framework of achieve within the EU an environment conducive the NATO-Ukraine and NATO-Georgia Commissions. to research and development. Let us begin While talking about NATO-Russia relations, Paet stated creating this environment on Baltic shores," he that the unilateral recognition of South Ossetia and Abkhazia said. is against international norms and is therefore unacceptable. The president stressed that all regional “NATO is a values-based alliance that considers international organisations and co-operation platforms have a law to be very important,” emphasised Urmas Paet. Paet specific role in the strategy and the programme stated that continuing communication with Russia is should support rather than duplicate their necessary, but it can be based upon the events of the past activities. few months, including the attack on Georgia. Considering the diversity of the countries Also discussed at the NATO foreign ministers’ meeting around the Baltic Sea, the Baltic Sea programme were topics related to the NATO-led Afghanistan operation could be a good example and a testing ground and the situation in Kosovo and the Western Balkans in for the EU's aspirations to create a well- . The NATO-Ukraine and the NATO-Georgia functioning internal market, Ilves said. With Commissions both met as well, the latter for the first time regional success, good practices could be within the foreign minister format. employed elsewhere as well. In view of this, the Baltic Sea strategy should set ambitious goals and not just aim at rearranging regional policies.

Foreign Minister Gives Speech on Fighting Lennubaasi Ohvitseride Kogu), which cost a total of Corruption at Doha Conference 42 000 kroons. The leader of the project was the head of the apron service team at Kabul 30 November - Foreign Minister Urmas Paet International Airport, Senior Sergeant Kaido gave a speech at the International Conference Külasalu. on Financing for Development in Doha, Qatar. The goal of the project is to improve the Foreign Minister Paet emphasised that financing operational capabilities of Kabul’s civilian airport and development must go hand-in-hand with reducing increase the safety on the ground at the airport. The corruption and battling against tax evasion. local members of the airport’s apron service team In his speech, Foreign Minister Urmas Paet were given electron top-lights to affix to the roofs of emphasised the role and responsibility of developing cars, reflective vests, directing sticks, and sets of nations in achieving success. “In order to achieve car stickers reading “FOLLOW ME” and “KABUL economic development, developing nations must AIRPORT”. focus on battling corruption and tax evasion,” said Estonian Charge d’Affaires Daniel Erik Schaer Paet. “Neither the donors nor the developing nations stated that Kabul Airport is under a lot of strain due should allow tax evasion, a black economy, under- to the comprehensive rebuilding of Afghanistan, and the-table payments, and corruption,” he stressed. they recently opened a new terminal that is being The Estonian foreign minister stated that donor used to fly 26 000 people on their pilgrimages, or states and those receiving aid must rally together hajjis. Regularly scheduled airliners, civilian and their domestic resources to ensure the effectiveness charter planes, and transport flights all land at Kabul of development. “Regardless of the global economic Airport. “Adopting the use of quality safety crisis, we cannot back down from our primary goal— equipment will help to improve the quality of service decreasing poverty,” emphasised Foreign Minister at the airport, and will also motivate local officials to Paet. “Half of the world’s population lives in total organise their work better and further develop poverty, with an average income of less than one safety-related sectors at the airport,” said Schaer. dollar a day. Developing and transitioning countries With the current project, Estonia is contributing to must decisively take responsibility for ensuring the safety of Kabul International Airport and progress and strengthening their domestic financial increasing the capabilities of the airport. systems,” he added. “The principles of a market Afghanistan is one of Estonia’s priority economy, a strong tax policy, free trade, the development co-operation partners. Since existence of competition, co-operation with the September 2006, an Estonian civilian representative private sector, and an effectively regulated financial has worked in Afghanistan, organising the market are all requirements for economic implementation of development co-operation development and reducing poverty, and developing projects there. Starting in March of this year, an nations should use them to guide their activities,” Estonian medical expert has been co-ordinating the explained the foreign minister. development of the health care sector in Helmand Along with pulling together domestic resources, province. the Estonian foreign minister stated that the establishment of good governing practices is also very important. “If the government bases its activities on the law, then there is hope for more rapid development,” Paet acknowledged. Paet stated that Estonia will continue to contribute to both development co-operation and humanitarian aid. “Helping societies that are in a worse situation than we are is the mission of every respectable nation,” said the foreign minister. The International Conference on Financing for Development that took place from 28 November – 2 December in Doha, Qatar was attended by the leaders and government representatives of all the donor nations and developing countries in the world. During the conference, the Final Report was adopted that marks the halfway point in achieving the UN Charge d’Affaires Daniel Erik Schaer presenting Millennium Development Goals. safety equipment to Kabul Airport’s apron service team, 26 November Estonia Gives Safety Equipment to Apron Service Team of Kabul Civilian Airport Estonian, Portuguese Justice Minister 26 November - Estonian Charge d’Affaires in Demonstrate ID card Facilities to Barroso Afghanistan Daniel Erik Schaer, along with the 27 November - Estonian Justice Minister Rein Estonian military airport apron service team, Lang and his Portuguese colleague Alberto presented Kabul’s civilian airport with safety Costa demonstrated to European Commission equipment that will help to co-ordinate the President Jose Manuel Barroso a new movement of flight vehicles on the ground. The opportunity for performing commercial register equipment was procured through a joint transactions in both countries with the help of development co-operation project carried out by the either country's ID card. Estonian Foreign Ministry and the non-profit organisation Air Base Officers’ Collective (MTÜ Lang said this is probably the first time ever that local life and patriotic movements, deserving home one country's register accepts another country's ID researchers, leaders of several citizens' initiatives, card and the digital signature given with it. teachers, and farmers. "This will certainly not result in a flood of “In a democratic country, all days should be Estonian investment in Portugal and vice versa, but citizen’s day as it is the sum of the activities of the the opportunities created by us have symbolic value citizens that this country is made of,” said Prime for whole European Union," the minister said. Minister Ansip. According to him, being a citizen Barroso congratulated the Estonian and means helping out where something is needed. He Portuguese justice ministries and pledged on behalf cited the national cleaning day “Let’s Do It 2008” as of the Commission to showcase the facility as the a great example of citizen activity. best example of co-operation between countries to Minister of the Interior Jüri Pihl expressed develop economic life. approval that citizen activity can be noticed in very The Estonian-Portuguese initiative connects well different fields of life. “Citizens are the foundation of with the Commission's ideas on giving a boost to our country,” he stressed and added that in addition European economy which call for wide utilisation of to everyday activity, the political activity and new technologies, the president said. participation of citizens in elections are also very Lang and Costa will make a video presentation of important for the country. the opportunities offered by both countries' This year, Citizen’s Day is being celebrated for enterprise portals and mutual recognition of digital the eleventh time. The motto of this year's Citizen's signatures at the Justice and Home Affairs Council Day is: “The Republic of Estonia over ninety years”. meeting on Friday. The enterprise portal of Estonia's e-commercial Celebration of the Anniversary Year of the register now allows one to establish a company and Estonian Republic Ends with Thank-You make changes in register entries also with a Belgian Concert ID card and a Lithuanian mobile ID-authenticated digital signature. Finland is to join the list soon. 28 November - The celebrations of the 90th anniversary of the Republic of Estonia ended President of the Republic Received with a festive ceremony at the Estonia Concert Credentials from Ambassadors of South Hall. President Toomas Hendrik Ilves thanked all of the people who have contributed to the success of Korea, Nigeria, Greece the anniversary year across Estonia. 27 November - President Toomas Hendrik Ilves The people who have helped in organising the met with the Ambassadors of South Korea, celebrations of the anniversary year of Estonia – Nigeria, and Greece, who presented their from all counties, community centres, societies and credentials to the head of state in Kadriorg. associations, local governments, hobby and Credentials were presented by Ambassador Ho- professional theatres – were invited to the thank- Jin Lee of the Republic of Korea, who resides in you concert. The people who assisted in the Helsinki; Ambassador Ibrahim Pada Kasai of the organisation of major national events such as the Federal Republic of Nigeria, who resides in Kiev; and night-time song festival, the cleaning campaign Ambassador Polydore Kokonas of the Hellenic “Let’s Do It 2008” or the concert series in Estonian Republic, who resides in Tallinn. parishes, were invited as well. The choir piece “Loits Eestile” (“Incantation for Estonia”) by Urmas Sisask was performed at the Estonia Concert Hall. It is one of the five new compositions that during the Estonian anniversary year have been dedicated, as musical presents, to the countries that greatly assisted in the gaining or restoration of the independence of Estonia.

DEFENCE NEWS Minister of Defence Awards Defence Force Members Who Served in Afghanistan 2 December - In the Peace Operations Centre in Paldiski, Minister of Defence Jaak Aaviksoo awarded medals of participation in

President Toomas Hendrik Ilves greets international peace operations to 142 Defence Ambassador of Greece Polydore Kokonas, 27 Force members who recently returned from November Afghanistan. "We have gathered here in Paldiski today to express our thanks. Thank you for what you have DOMESTIC NEWS done for the Republic of Estonia, our allies and the Prime Minister and Minister of the people of Afghanistan,” said the minister to the Interior Thanked Model Citizens Defence Force members. “On the one hand, this is not much as there is still a lot to be done. But most 26 November - Prime Minister and definitely, this means a lot for you and for the Minister of the Interior Jüri Pihl awarded Republic of Estonia." Citizen’s Day badges of honour to those people Minister Aaviksoo confirmed that the contribution who have stood out with their social activities of the Defence Force members who served in and noteworthy initiatives. In total, 17 people Afghanistan has not passed unnoticed amongst both were given badges of honour, including promoters of

3 the local population in far-away Afghanistan nor equipped in NATO by the established deadline," among Estonia’s partners and Estonia. Aaviksoo also Laaneots said, adding that arranging strategic admitted that, unfortunately, losses are an transport for the battalion still requires work. inevitable part of all military operations. “You Lt. Gen. Laaneots, his Lithuanian counterpart Lt. understand this, and you have been able to accept Gen. Valdas Tutkus and Latvian counterpart Maj. it. At the same time, all those who have suffered Gen. Juris Maklakovs also discussed during their from direct losses deserve our respect, support and meeting in Parnu matters related to Baltic air long-term admiration. I have no doubt that you can policing and strategic transport, as well as offer all this to your fellow combatants,” the minister development of the joint Baltic defence college of defence said. BALTDEFCOL. The need to review and develop the "I hope that what the state of Estonia has to offer curriculum at BALTDEFCOL was addressed. is dignified enough. We have introduced the In a joint statement, the Baltic Military Committee required changes and amendments to the Defence voiced recognition of the development of Baltic Forces Service Act and, hopefully, these will be soon military co-operation and the importance of constant enforced,” Defence Minister Aaviksoo added. co-ordination of joint military projects. "Honoured combatants, thank you! Rest and enjoy Lt. Gen. Laaneots handed the powers of chairman of the opportunities and freedoms offered by the the Baltic Military Committee to Maj. Gen. Republic of Estonia. And please be aware that some Maklakovs. of the freedoms have come about thanks to you,” The meeting of the Baltic Military Committee was the Minister of Defence said. followed by a meeting of Baltic defence ministers. Medals of participation in international peace The common projects in defence co-operation for securing operations were awarded to 142 Defence Estonia, Latvia and Lithuania are the joint infantry Force members who served in Afghanistan from May battalion BALTBAT, the joint air space monitoring to November of this year, in infantry company system BALTNET, the joint mine countermeasures Estcoy-6, mortar platoon, national support element squadron BALTRON, and the joint defence college NSE-5, a military police close protection team CPT- BALTDEFCOL. 5, and also officers and non-commissioned officers who served at Kabul international airfield and New Permanent different ISAF headquarters. Undersecretary of Ministry of Defence 56 Defence Force members who participated in their first international operation were awarded a 27 November - The Government today approved medal – a brooch with the inscription “AFG 2008” the candidacy of Riho Terras for the position of and a black star. A brooch was bestowed on 75 a permanent undersecretary of the Ministry of Defence Force members who participated in their Defence. Terras earlier served as the deputy chief second or third mission, while the ten Defence Force of staff of the General Staff of the Defence Forces in members who participated in their fourth, fifth or the operations sphere. sixth mission received a brooch and a silver star. Riho Terras started his career as a permanent One Defence Force member who has participated in undersecretary from 1 December, and his term of more than six missions got a brooch and a golden office will last for five years until 30 November star. 2013. The have been Riho Terras was born in 1967. He has served on participating in the operation in Afghanistan since 13 different positions in the Defence Forces since 1991 March 2003. There are currently approximately 150 – as a company and staff commander of the Kalev members of the Defence Forces serving in Single Infantry Battalion, the commander of the Afghanistan, in the largest and most difficult Single Guard Battalion, as a chief of the general international operation for Estonia. Those members staff of the Defence League, defence attaché to include the infantry company ESTCOY 7, national Germany and Poland, as the director of the analysis support element NSE 6, cross service team CST at and planning department of the General Staff of the Kabul airfield, and a number of staff officers serving Defence Forces, deputy chief of staff of the NATO at different headquarters of the allied forces. Training Mission in Iraq, and as the deputy chief of staff of the General Staff of the Defence Forces in Training for Baltic Battalion to Be the operations sphere. Mr. Riho Terras completed a senior staff officers’ course at the Baltic Defence Completed on Time College and has a master’s degree from Bundeswehr 28 November - Training of the joint infantry University in the degree programme of state and battalion of the three Baltic countries is going social studies. as planned and the unit will be manned and Riho Terras resigned from the Defence Forces trained by the established deadline, with the rank of Lieutenant . commander of the Estonian Defence Forces Lt. Gen. said. Training, equipment and strategic transport of the ECONOMIC NEWS joint Estonian-Latvian-Lithuanian battalion that will be part of the NATO Response Force NRF-14 in 2010 Estonian Companies’ Q3 Revenues was the central topic at a meeting of the Baltic Consistent with Last Year’s Military Committee, a body made up of the 1 December - Sales revenues of Estonian commanders of the Defence Forces of the three enterprises in the third quarter of this year Baltic countries. were practically unchanged from the same Laaneots said the project was proceeding according period of 2007, totalling 169.8 billion kroons to plans. (EUR 10.85 billion), which represents a year- "Control exercises of the battalion's sub-units and on-year growth of just 1.6 percent, Statistics the battalion itself are planned for next year. I'm Estonia said. sure that BALTBAT will be manned, trained and

4 Wholesale and retail trade enterprises and port received 2,323 cargo ships and 6,247 companies engaged in the maintenance and repair passenger ships in the 11 months. of motor vehicles and household appliances accounted for the biggest part, or 72.9 billion kroons of the revenue. The manufacturing sector contributed 33.7 billion kroons and the construction ESTONIAN REVIEW sector 16.4 billion kroons. (ISSN 1023-1951) Compared to the third quarter of last year, sales Is issued by the increased in most activities. Press and Information Department, Ministry of Foreign Affairs ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049 The average number of gainfully employed TEL +372 637 7600 persons was 459,489, an increase of 2,668 persons FAX +372 637 7617 against the same period a year ago. Estonian Review is also available over the

Internet at http://www.vm.ee Baltika’s November Sales up 12 Percent To subscribe, please contact: [email protected] on Year 2 December - The consolidated sales revenue of the Estonian garment manufacturing and retail group Baltika in November totaled 104.8 million kroons (EUR 6.7 mln), an increase of 12 percent compared to November 2007. Retail sales grew by 15 percent and wholesale decreased by 23 percent year on year. Wholesale revenues have declined in line with projections, Baltika said. The group's comparable store sales growth for November was 8 percent, including 36 percent in Russia and 34 percent in Ukraine. November retail sales increased 35 percent in Central Europe, 32 percent in Eastern Europe and 6 percent in the Baltic region. Baltika Group had 133 stores with a total sales area of 26,911 square meters at the end of November, with six stores opened and one closed during the month. Four stores were opened in Panorama, the newest shopping and entertainment center in the Lithuanian capital. With 33 stores, Lithuania became Baltika's biggest market in terms of the number of stores. In December, the company plans to open one store. Cumulative eleven-month sales revenue amounted to 1.1 billion kroons, an improvement by 5 percent year on year. Retail sales totaled 968 million kroons (plus 10 percent) and wholesale 131 million kroons (minus 8 percent).

Cargo Throughput of Port of Tallinn Climbs 3 Percent on Year 2 December - Estonia's state-owned Tallinna Sadam (Port of Tallinn) handled 2.24 million tonnes of goods in November, about 3 percent more than in the same month a year ago. Freight volumes in the first 11 months of 2009 totaled 26.58 million tonnes, a 21 percent decrease year on year, figures provided by the company on Tuesday show. Handling of roll-on, roll-off cargoes (tractors, buses, etc.) meanwhile inched up 0.4 percent to 3.3 million tonnes. Bulk freight shrank by 62.8 percent to 2.7 million tonnes and mixed cargoes decreased by 23.9 percent to half a million tonnes. The decline in bulk cargoes mainly resulted from smaller volumes of coal, grain and fertilisers. At 1.3 million tonnes, the amount of container goods slightly exceeded last year's level. The number of passengers, at 6.7 million, showed a year-on-year growth of 12 percent. The

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