Estonian Review E E S T I R I N G V A A D E VOLUME 16 NO 39 OCT 4 - 10, 2006

ESTONIA’S NEW PRESIDENT SWORN IN Ilves: 's Future Is in Its Citizens' Hands Oct 9 – In his inaugural address, President said that by the end of his term, Estonia must become a state determined by all , with no vestiges remaining of the Soviet occupation. "In five years we should hand over to the first generation brought up in newly independent Estonia a state, which will look and perform as if there had never been any occupation, the president said before parliament. “Naturally, we cannot abolish fifty years of occupation. However, a generation – twenty years – is a period for us to judge whether we coped or not? Have we made Estonia greater, better, safer and more homelike?” Ilves said the Estonian state is the proactive creation of its citizens, not of foreign powers and international bodies. "At any given moment our country is a work of art created by us, citizens, not by Moscow, Brussels or the International Monetary Fund. No private individual, government, party or company has founded our country. It is we ourselves, each and every one of us, every day that boldly and surely have to shape Estonia." Ilves said that those to whom the people have entrusted leadership and responsibility must act for the sake of the citizens. He also spoke about coming to terms with the past. “If we would like to leave to the generation born in independent Estonia a mentally healthy state, we should not apply the past as a cudgel. The past itself cannot punish or impeach anybody if the past is transparent, known and disclosed." Ilves said it was time to think about the future, but noted that requires much more than reciprocal apologies. "If we would like Estonia to be great and generous, we should offer everybody living here something unique, exclusively Estonian and attractive.

(to be continued on page 2)

ESTONIA’S NEW PRESIDENT strength of its basic values survived the years of no statehood, bore the hardships of the period of SWORN IN transition, and wishes to be successful also in the (continued from page 1) present-day world. My respect and love belong to this nation," he said. We should provide a reason that would keep the young in Estonia and would return the tens of Estonia's New President's First Foreign thousands who have left Estonia during the last Visit Set for Oct. 16 fifteen years.” The President said Estonians need to feel Oct 10 – President Toomas Hendrik Ilves will they live in a country where they are cared about. make his first foreign visit as on "If we would like Estonia to rank high by economic Oct. 16, when he travels to both and growth and welfare, not by suicides and depressed . people, we have to care," Ilves said. The President will be in Latvia in the first half Estonia has proved it can cope, the President of the day and fly directly to Finland in the affirmed, saying that both the road toward the afternoon. and NATO as well as the Tiger Leap Baltic heads of state are scheduled to meet toward the information society would have remained in the Lithuanian capital Vilnius at the beginning of nothing but pretty plans if people had not mustered November. up energy and pitched in. "We can reach new goals as well," Ilves said. Senior Diplomat to Become Foreign "Let us make Estonia greater," the President Affairs Adviser to Estonian President urged the people, parliament and government, Oct 5 - Long-serving diplomat Sven Jürgenson adding that this was a challenge to himself as well. is about to assume the post of foreign affairs adviser to Estonia's new President Toomas Outgoing President Focuses on Estonia's Hendrik Ilves. Primary Challenges Jürgenson is currently the Foreign Ministry’s Oct 9 – In an address to parliament, outgoing undersecretary for political affairs. President Arnold Rüütel said that protecting Jürgenson, an information processing the Estonian nation, language and culture, graduate of the University of Technology, ensuring social security and increasing joined the Foreign Service in 1991. cohesion in the society were the main From 2000-2003 Jürgenson served as challenges facing the country. Estonia's ambassador to the United States. Rüütel wished his successor, Toomas Jürgenson was appointed ambassador to the United Hendrik Ilves, strength and will to serve the nation Nations in 1998 and before that, in 1996-1998, he and increase Estonia's achievements in a rapidly worked as head of the Foreign Ministry's political changing world that presents complex choices and department, serving at the same time as the challenges. "I wish and hope that your activity will country's ambassador to Turkey. be accompanied by people's trust and support, which I have had the good luck to enjoy," he said. Estonians Expect New President to Focus Rüütel said that when taking office five years on Social Issues - Survey ago, he pledged to do his best within the Oct 9 - Estonians expect the newly-elected constitutional boundaries to bridge the gap between President Toomas Hendrik Ilves to devote different social classes, political forces and levels of himself above all to social issues, a survey power, and that he has adhered to these principles shows. when performing his duties. The study revealed that 22 per cent of He also said he has defended national and Estonian residents, particularly those aged 35-54, universal human values as well as the values would like Ilves to focus on social policy instead of mentioned in the preamble to the Estonian foreign policy. Constitution, which outlast the presidential term of At the same time, the least well-to-do attach office and from which the long-term objectives of less importance to the social sphere than average as the Estonian society arise. "they have probably realized that the president has Rüütel named the preservation of the only marginal resources for addressing this issue," Estonian nation, language and culture as a key sociologist Kalev Petti from the Faktum & Ariko priority. In his words, constant and unceasing work Research Company said. is required for more Estonians to be born and for Fourteen per cent of those polled would like Estonians to wish and be able to live as a happy the President to focus on educational issues while nation in a successful state, communicate with each only 10 per cent have expectations related to other in their native language and carry on the foreign policy or children's and youth issues. national traditions and values. Russian-speakers' expectations of the As an objective of equal importance, the President devoting himself to domestic affairs are outgoing president named social security, for which considerably higher than ethnic Estonians'. balanced and mutually supportive cooperation of the Only 2.6 per cent of respondents see Ilves state and local self-government is necessary. as a balancing force consolidating the nation. Rüütel said increasing cohesion in society As many as 30 per cent of the polled have was a third major goal. no expectations regarding the new head of state, Rüütel also thanked the Estonian people for the survey showed. all their achievements. "This is a nation which on the Paradoxically, it is mostly younger The Cypriot minister thanked Estonia for its respondents who are unable to put their hopes and support as regards the topic of reunification of expectations into words even though Ilves is their Cyprus. favourite. Following their meeting, both foreign Asked to identify Ilves' shortcomings, 72 per ministers said that the positions of Estonia and cent of respondents could not name any. Cyprus as regards further enlargement of the EU were similar, including on matters related to the FOREIGN NEWS accession of Turkey to the EU. "We believe that the future of the European Formin: Estonia Supports Democratic Union can be ensured only through enlargement and Forces of Belarus remaining open," Lillikas said, also underscoring that Oct 5 - Estonia supports the democratic forces all accession countries must adopt EU law. of Belarus and condemns undemocratic steps As Paet said, both Estonia and Cyprus find by the Belarusian authorities, Estonian Foreign that starting accession negotiations with Turkey was Minister Urmas Paet said. right and both countries wish to see a Turkey that "We are offering all-round support to the adheres to EU values. democratic forces of Belarus, the opposition and the At the same time it is important that Turkey people of Belarus, by giving them an opportunity to would abide by EU law and meet the commitments see how democracy works," Paet said. He said a of the Ankara protocol, which requires it to open its good example of this was the admission of ten ports and airports to vessels and aircraft from all EU Belarus students into universities in Estonia. member states including Cyprus, Paet added. Paet made Estonia's position known during a Lillikas said that Cyprus had twice backed meeting with Ivonka Survilla, president of the Rada the opening of EU accession talks with Turkey in a of the Democratic Republic of Belarus in exile. popular vote, yet Cyprus' support couldn't be Discussed during the meeting was the situation in unconditional. Belarus and Estonia's possibilities to support Belarus' "We cannot support (Turkey) before Turkey democratic opposition. starts to fulfil its commitments," he said. Survilla offered an in-depth account of both the situation in Belarus following the presidential elections as well as her own activity as president of the Rada of the Democratic Republic of Belarus in exile. Paet added that Estonia has been constantly raising the issue of Belarus at EU meetings and will continue doing it in the future. "We are taking an active part in discussions of policy vis-à-vis Belarus in the European Union," he said.

Formin: Estonia Sees Cyprus as Partner with Expertise in Mideast Oct 5 - Estonian Foreign Minister Urmas Paet, who met his Cypriot counterpart Georgios Lillikas, said Cyprus was a good partner for High-Ranking State Department Official Estonia in matters related to the Middle East. Says US Wants Visa-Free Entry for The Cypriot minister said Estonia could be of Estonians interest for tourism sector investors from Cyprus. Oct 4 - Mark Pekala, US deputy assistant Paet said Cyprus' know-how in matters secretary of state on European and Eurasian related to the Middle East had to be given due affairs, has said the United States considers it recognition in bilateral contacts. Lillikas added that important that Estonian citizens would be able Cyprus' position as a bridgehead between Europe to travel to the United States without a visa in and the Middle East had been highlighted by the the future. recent conflict in Lebanon. Pekala said the topic of Estonia's joining the Many European companies are using Cyprus US visa waiver program had been raised during his as their regional base in business with the Middle meetings with the Estonian president and politicians East. Estonian companies that wish to sell their and that the United States understood the products or services to the Middle East also could importance of the topic for Estonia domestically and view Cyprus as such, Lillikas said. politically. Both ministers named intensifying of The United States very much wants economic contacts as an important topic in bilateral Estonians to be able to travel to the United States relations. without a visa, Pekala said. "I believe that in Estonia the tourism sector The United States understands that the could be of interest for Cypriot investors, because matter is important emotionally and psychologically, investors from Cyprus already have entered the and is of importance also in bilateral relations, said tourism business in Egypt and ," Lillikas said. Pekala. Paet observed that the Estonian-Cypriot joint Pekala had meetings during his visit to commission on economy at its last meeting had Estonia with President Arnold Rüütel, Foreign discussed economic interaction in hi-tech and IT Minister Urmas Paet, members of the government, products in Estonian exports and in IT and maritime managers of and MPs. business in trade in the opposite direction.

3 High-Ranking State Department Official facilities of the hydroelectric power station Thanks Estonia for Contribution to need a final solution and the rules for using the need to be specified. Missions The tenth meeting of the commission will Oct 4 - Mark Pekala, the US deputy assistant take place in St. Petersburg next September. secretary of state, thanked Estonia for its military contribution to the missions in Kyrgyz Law Enforcement Personnel Afghanistan and Iraq. Learning From The Estonian contingent is fulfilling very difficult tasks in helping to build democracy in Iraq Oct 10 - A ten-member Kyrgyz delegation and Afghanistan, and the United States as well as arrived in Estonia on a four-day learning trip to other allies are very grateful to Estonia, Pekala said study the structure, day-to-day work and in Tallinn. development of the police. "We and many of our partners from across The high-level delegation headed by Deputy the world wish to help the people and the Interior Minister Temirkan Subanov includes police government of Afghanistan, and the people and the chiefs of several regions and cities, law enforcement government of Iraq in building a democratic officers and representatives of the police academy. society," Pekala said. "In both cases we're faced "If years ago we ourselves used to make with a very difficult challenge," he said. learning trips to many countries then now we Pekala added that the United States and its increasingly have the pleasure to share our progress allies were achieving success, yet in the case of both with others," deputy police chief Erki Nelis said. countries the conditions were extremely difficult and On the first day of the visit the Kyrgyz law violent. enforcement personnel were given an overview of the work and equipment of the personal security Estonia, Russia to Continue Cooperation service and the training and equipment of riot troops. On the second day, legislation underlying in Protecting Transboundary Bodies of police work, general structure of the force, latest Water reforms, and information technology opportunities Oct 5 - A joint protocol was signed after a and visions will be in the focus. session of the Estonian-Russian commission On the third day the delegation visited the for the protection and sustainable use of North police prefecture, one of the four regional transboundary bodies of water. units, where they were shown the command centre, The head of the Estonian delegation, detention facility, and interview room, and given an secretary general of the Estonian Ministry of overview of patrolling and securing law and order Environment Annika Uudelepp, said the commission during public events. decided at its ninth meeting that measures to On their last day in Estonia the Kyrgyz improve the condition of the bodies of water situated officials visited the police college of the Public on the national border need to be continued. Service Academy at Paikuse in the south-western As part of it, water resource management Pärnu County and the West prefecture. plans will be implemented jointly with the Russian side, she said. Estonian Analysis Confirms That Oil Had The signature on behalf of Russia was given Been Processed on Board the Tanker by the head of the Russian delegation, deputy chief of the water resources agency Marina Seliverstova. Oct 7 - The Estonian prosecutor's office In the course of two days, representatives confirmed that toxic waste on board the tanker from Estonia and Russia gave each other an Probo Koala is the result of the oil processing overview of the situation concerning the use of on board of the ship. bodies of water and the outcome of monitoring of "Chemical analyses have led to finding from the bodies of water. the so-called slops on board the vessel toxic It emerged that consumption of water from elements that are by no means created in rinsing the transboundary bodies of water has been stable out the tanks with seawater," public prosecutor Alar in recent years at around 1,300 million cubic meters Kirs said. per year. Most of that is consumption by Estonia's This is what Trafigura, the firm renting the Narva Power Plants. tanker, has been claiming — that the slops are the While the amount of waste water needing result of rinsing out the tanks. The company has treatment has not increased, water pollution has also denied that the slops are toxic. started to decrease. Kirs said that the results showed that oil had The Estonian government invested 79 million been processed on board the tanker, as a result of kroons (EUR 5.05 mln) in the water resource which a substance posing a hazard to the management of the Narva River basin last year, in environment as well as to human health has been addition to which the state-owned Narva Power created, with a composition similar to the one Plants spent 32 million kroons. dumped in Abidjan, Ivory Coast, where it caused a The Russian side spent 14 million roubles or major environmental catastrophe. about 6.5 million kroons on measures to protect the Kirs said the whole crew of the ship had bodies of water shared by the two countries. been interviewed by now. Investigators went on A problem that persists is eutrophication – board the ship another time to confiscate excessive amounts of phosphorus and nitrogen in documents, to copy information from the ship's bodies of water, particularly Lake Peipsi -- which computers and to take additional samples of the causes changes in the ecosystem. slops as well as of crude tank cars. "We now have all The commission decided that joint the necessary documentation," Kirs said. monitoring and research activities would be The prosecutor's office took criminal action continued. Matters related to the hydrotechnical under an article on the violation of rules for the

4 handling of waste dangerous to human health or the level as soldiers from the other allied environment. The prosecutor's office has not countries. declared any suspects in the case yet. "Estonia became a member of NATO a In addition to Estonia, criminal action in couple of years ago, just 12 years ago Russian connection with the Probo Koala has also been taken troops left here, yet now Estonians rank among the in Ivory Coast and the ; a request for best soldiers in NATO," he said. legal assistance in connection with the Probo Koala Kujat called it important that Estonia is arrived from that country. contributing troops to common defence in the same proportion as other countries. Estonian Replacement MEP to Start "Estonia is not a European superpower, but Working On Foreign Affairs Committee compared with the number of residents Estonia is making an immense contribution to NATO forces," Oct 6 - , who will replace Toomas he said. Hendrik Ilves in the after Kujat headed the NATO Military Committee Ilves was elected , will when Estonia became a member of the alliance. become a member of the foreign affairs Now retired, Kujat continues to be a committee at least until the end of this year, renowned expert in national defence and defence but Saks does not rule out change of cooperation. committee as of next year. Saks said that according to preliminary Iraqi Govt Rep Asks Estonia to Remain information, the Social-Democratic faction of the European Parliament has decided that she should Oct 6 - A special representative of the Iraqi replace Ilves in the committee at least until the end government taking part in a conference of of this year. Iraqi coalition forces has asked the Estonian But Saks said it was possible she would join to continue their mission in the some other committee as of next year, should a country. need arise and if it was in Estonia's interests. In the framework of the Iraqi coalition forces conference in Warsaw, chief of staff of the Estonian Estonian Capital, Finland's Turku Agree defence forces Brig. Gen. Alar Laneman met with the special representative of the Iraqi government. On Cooperation Besides asking the Estonians to continue Oct 10 - Mayors of the Estonian capital Tallinn their stay, Laneman said the representative thanked and the Finnish city of Turku have concluded a Estonia for its participation in the reconstruction of memorandum on general principles of the country. cooperation on whose basis the two cities will Representatives of nearly 80 countries, map out their activities as European Capitals of including those from the 26 countries whose military Culture in 2011. units are taking part in the operation, attended the The document was signed by Tallinn Mayor conference. Jüri Ratas and his counterpart from Turku, Mikko Pukkinen. Estonian Unit in Iraq Captures Six It was also agreed to set up a joint work Terrorism Suspects group to implement the objectives and actions outlined in the cooperation agreement which would Oct 10 - The Estonian infantry platoon ESTPLA- include three to five specialists from either city. 13 serving in Iraq detained during the past Tallinn proposed to Turku to take part in this week six people suspected of terrorism, among year's Christmas fair in Brussels where the Estonian them a fighter of the extremist Mahdi army capital will have a display. wanted by the coalition forces. "We can jointly make the European Capital The unit also confiscated weapons that of Culture 2011 a success by developing cooperation belonged to terrorism suspects, the defence in certain areas and coordinating our efforts," Ratas headquarters reported. said. In the last two weeks, Estonian soldiers have The two cities intend to work closely been patrolling their earlier area of responsibility together in the spheres of culture and art, the near the town of Sab-al-Boor north of Baghdad, Tallinn mayor said. Plans include also joint projects supporting the Iraqi army to contain the escalating to showcase the specific features of the kindred hostilities. The unit's new area of responsibility nations' cultures. around the village of Hor-al-Bosh is currently "Our aim is to make year 2011 a diverse patrolled by US troops. year of culture in the whole region," Ratas said. ESTPLA-13 under the command of Lt. Meelis Jõemaa has been stationed in Iraq since the DEFENCE NEWS beginning of June and will stay there till mid- December. Ex-Chief of NATO Military Committee In the first three months of service in Iraq, Praises Estonian Soldiers Estonian troops detained 23 terrorism suspects, Oct 4 - Former chief of the NATO Military found four weapons caches and seized large Committee Gen. Harald Kujat, currently on a amounts of arms and ammunition. visit in Estonia, has described Estonian soldiers The unit is serving to the north of Baghdad as being among the best in NATO. as part of a battle group of the US Army 4th Infantry Gen. Kujat said that in operations in Division's 1st Brigade. The 34-strong platoon has Afghanistan, Iraq and the Balkans Estonian military been trained to carry out military operations as part have shown themselves as being on the same good of infantry and motorized units.

5 Queen Elizabeth II to Hand Ship's Badge The prime minister said that if the debate to Estonian was simply over whether the state had suffered losses as a result of the deals or had not, then it Oct 5 - During her visit later this month, Queen would take place in a civil court. Ansip said that a Elizabeth II of Britain is set to hand to the case of corruption could be presumed. the badge to be used by one of He said Reiljan had signed the land the mine hunters that the navy is buying from exchange deals and so had to take political Britain. responsibility. One of the three British-made mine hunters will be named the Cowan after Admiral Director of Estonian Land Board, Two , who led the British light cruiser squadron that was active in the Baltic Sea at the More Suspects Placed Under Arrest in time of Estonia's War of Independence (1918-1920). Corruption Probe The British naval unit supported Estonian forces Oct 5 - A court issued arrest warrants for the from the sea. director of the Estonian Land Board, Kalev Queen Elizabeth II will hand the ship’s badge Kangur, and two businessmen as part of an to Estonia in a ceremony on board the 's ongoing investigation into alleged corruption. HMS Liverpool in Tallinn's Old Harbour on Oct. 20. The Harju Country court authorized the Estonia is buying three mine hunters of the detention of Kangur, Einar Vettus, manager and co- Sandown class from the British Navy for 800 million owner of the project management company TSM, kroons (EUR 5.1 mln) in what is one of the largest and Tarmo Pedjasaar, member of the city military hardware procurements in Estonia's history. council, for up to six months. The first of the ships will be delivered in April Security police have opened a criminal 2007, the second in March 2008 and the last one in investigation into the exchange of properties with February-March 2009. The ship to be delivered first environmental restrictions for state-owned land. will be named the Admiral Cowan. Minister of Environment Villu Reiljan The 52.6-meter mine hunters were built at suspended the chief of the Land Board from his job Vosper Thornycroft shipyards in the years 1988- and opened a disciplinary investigation. 2001. The ships take a crew of 37 and the Estonian It is possible in Estonia to swap plots of land Navy is planning to have the vessels in active use which are under environmental protection and thus for at least 15 years. unsuited for business activities, for state-owned properties situated elsewhere. DOMESTIC NEWS Estonia's New Environment Minister Estonian President Turns to Supreme Appointed Court over Property Law Oct 10 - Estonian President Toomas Hendrik Oct 5 - The Estonian president turned to the Ilves appointed Rein Randver minister for the Supreme Court to have the amendment to the environment. Principles of the Ownership Reform Act, which The council of the coalition party, the the parliament passed for the second time People's Union, nominated Randver for the position, unchanged following its rejection by the citing his long experience in leadership positions. president in September, declared Randver, 50, is a zoological engineering unconstitutional. graduate from the Estonian Agricultural Academy. In rejecting the amendment, which seeks to He first worked on a collective farm and later served establish the legal basis for restitution of property to as deputy chairman and chairman of the Valga agro- residents of mostly German descent who resettled in industrial complex. under a Soviet-German deal in 1940 and In 1992-2003 Randver was member of the 1941, Rüütel said the government needed to Valga County government, serving in the posts of establish necessary norms so that the local deputy governor and governor. Elected Member of committees on the restitution and compensation of Parliament in 2003, he sat on the National Defence property could implement the intent of legislators. Committee. "The amendment does not impose an Randver chairs the policy-making council of obligation on the executive power to fulfil that task. the People's Union which he joined in 2002. It is also necessary that prior to the adoption of the The previous environment minister, People's act a thorough analysis be carried out to find out Union Chairman Villu Reiljan resigned, taking what kind of financial obligations it would pose on political responsibility for suspected violations at the the state and local governments," Rüütel said. Land Board overseen by his ministry. Outgoing Rüütel also referred to a ruling by the President Arnold Rüütel accepted his resignation on Supreme Court from 2002 which found the above- Oct 9. mentioned law to be unconstitutional, and the Supreme Court's having in 2006 declared it invalid, Estonian PM - Minister's Resignation Not considering it necessary that the would draft a new appropriate legal regulation to resolve To Affect Preservation of Coalition practical issues concerning the property that had Oct 6 - Estonian Prime Minister , belonged to the resettlers. chairman of the Reform Party, said the "The amendment in its present form does resignation of the environment minister did not solve the problem but creates new tension. It not affect the present ruling coalition. cannot preclude conflicts between commercial The prime minister said the decision of Villu interests and the interests of hundreds of Reiljan to step down was statesmanlike and he, too, households," the president said. would have resigned in a similar situation.

6 The parliament first passed the amendments destructive behaviour -- attempted suicides, on Sept. 14 with 47 votes from Pro Patria and Res deliberate self-injuring, and partiality for alcohol and Publica Union and Reform Party lawmakers. It was narcotics," Värnik said. She said nearly 22,000 new opposed by 38 deputies from People's Union, Centre psychiatric cases are diagnosed in Estonia every Party and the SDP. year. Following the rejection of the amendment by the president, the parliament passed it again ECONOMIC NEWS unchanged on Sept. 27

Estonia Naturalizes 83 More Citizens Currency rates in kroons Oct 5 - The Estonian government decided to () grant citizenship to 83 people who have met the conditions for acquiring citizenship and in whose case there were no grounds to refuse Estonian Consumer Prices Up 3.8 Pct on citizenship. Under Estonian law, each of the individuals Year in September will become citizens separately on the day after they Oct 6 - The consumer price index in Estonia submit a document to the Citizenship and Migration dropped 0.4 per cent in September from Board certifying renunciation of previous citizenship. August, the Statistical Office reports. The action plan of Estonia's national In comparison with September 2005, integration program for 2004-2007 sets the goal of consumer prices were 3.8 per cent higher on the granting Estonian citizenship to at least 5,000 average. people annually. Over 140,000 people have become Prices of goods dropped 0.8 per cent last naturalized citizens since Estonia regained month, including a rise of 0.4 per cent in food prices independence in 1991. and a drop of 1.8 per cent in manufactured goods. In 1992, there were 492,000 people with Prices of services climbed 0.4 per cent over undetermined citizenship living in Estonia, making the month. up 32 per cent of the population. As of Aug. 1 this In September, the consumer price index was year the number was 130,349, or 10 per cent of the most affected by a drop in the cost of motor fuel, an population. By the same date, 141,306 people had increase in housing expenses and the end of clothing been granted Estonian citizenship. sales. Year on year, administratively regulated Estonian Universities Planning Drug prices of goods and services rose 0.3 per cent while Development Centre non regulated prices climbed 5.1 per cent.

Oct 5 – The University of Tartu, the Estonian Experts See Estonian Economy as Healthy University of Life Sciences and the Estonian Biocenter have entered a cooperation Oct 6 - Economic experts surveyed by the agreement to establish a major European Institute for Economic Research (EKI) pharmaceutical research-and development predominantly view the state of the Estonian centre based in Estonia. economy as healthy and 88 per cent of them Launching the project is a major step on believe the situation six months from now will Estonia's way toward developed countries, said one be at least as good as now. of the authors of the idea, director of University of The economic situation in general and the Tartu's Institute of Technology Mart Ustav. "The current state of investment and private consumption centre's output will direct the Estonian economy on is seen as good by 94 per cent of respondents while to the path of high value-added production and six per cent view the situation as satisfactory. create preconditions for the emergence of a new Some 76 per cent of economists expect branch of industry." export and import to grow in the next six months The drug development centre will study the and none predict a decrease. molecular and physiological causes of human and As to the trade balance, 12 per cent animal diseases, identify and evaluate the suitability anticipate a shift for the worse and 29 per cent are of drug targets, design new potential drugs, develop hopeful of an improvement while the rest forecast technologies for their production and also test them. that the current situation will continue. Ustav believes the annual turnover of the Nineteen per cent of the experts see further centre will in six to seven years' time reach a rise of inflation ahead and 25 per cent predict a minimum of 100 million euros and it will employ at decline. A majority of 59 per cent believes the least 400 researchers. inflation rate will stay on the present level. Most economists are convinced that interest rates will go Number of Suicides down in Estonia up. The experts cited shortage of qualified Oct 10 - The number of suicides in Estonia has labour as the biggest problem faced by the Estonian nearly halved over the past decade but Estonia economy. In addition, scarcity of international nevertheless ranks among countries with a competition and the inflation rate, which is seen as high suicide rate. high, were mentioned. The number of suicides per 100,000 people The EKI survey indicated that consumer has dropped from 41 to 20 over the past decade, confidence stays high and consumers have positive director of the Estonian-Swedish Mental Health and future expectations. EKI director Marje Josing noted Suicidology Institute professor Airi Värnik said. however that people's saving habits are a persistent "Middle-aged men remain the group most at problem, as many people have plans for large risk. What causes concern is young people's self- purchases.

7 Of Estonian residents, 11 per cent view Fishery Development Foundation, the source of economic changes of the past 15 years as very subsidies in 2004-2006. good, 40 per cent as good and another 40 per cent To take advantage of the EKF funds, as satisfactory. Five per cent consider the changes member countries must draw up development to be unsatisfactory and 1 per cent, very bad. strategies and, on their basis, implementation programs laying down the rules for the subsidization Lithuanian Minister Invites Estonia's Natl of the fishery sphere in the next seven years. Power Co to Grid Privatization Auction The Estonian fishery strategy and the implementation program for 2007-2013 are Oct 4 - 's Foreign Minister Petras currently being developed. Vaitiekunas, who last week met with executives of the Estonian national power Elisa Wins Tender For Providing Universal supplier Eesti Energia (Estonian Energy), invited the company to take part in the Service privatization of a Lithuanian power grid. Oct 6 - The Estonian Communications Board has The Lithuanian government should within a declared telecommunications operator Elisa few months first decide whether to sell the grid into Andmesideteenused (Elisa Data private hands and then fix the conditions. Communication Services) winner of a tender The Rytu Skirstomieji Tinklai grid makes up for the provider of universal service. half of the Lithuanian power distribution network. In Elisa's tender for providing universal service, an auction for the same grid a few years ago, Eesti at 97 kroons (EUR 6.2) a month inclusive of VAT, Energia submitted the only qualifying bid, but the was lower than the government-set affordable rate deal did not take place because of Lithuanian ceiling for 2007, which is 98 kroons for private politicians' opposition. individuals and VAT-exempt legal persons and 120 kroons for other legal persons, the Communications Feasibility Study for New Nuclear Power Board said. Plant in Lithuania Nearing Completion The regulator wants to sign a contract with Elisa before December to ensure continued provision Oct 5 - The steering committee of a feasibility of universal service from the beginning of next year. study for building a new nuclear power plant in Two companies responded to the invitation Lithuania heard reports of work groups at a to tender published in July. The other tender was meeting in Riga. submitted by the current service provider, Elion of Reports of the work done so far were the Eesti Telekom group. presented by the financial, legal, power Only Elisa's tender met the requirements set transmission, technology and environmental panels, down in the tender invitation, the Communications spokespeople for Estonia's national power supplier Board said. Eesti Energia (Estonian Energy) said. The provider of universal service must The steering committee will analyze the ensure that all end users across Estonia can connect conclusions of the workgroups over the next three to the public telephone network and maintain the weeks and gather for its final meeting on Oct. 25 in connection. Vilnius. The feasibility study of the project is planned Steep Rise in Freight Turnover of to be completed by the end of the year. Leaders of Eesti Energia, the Latvian Estonia's South Port Latvenergo and Lietuvos Energija of Lithuania signed Oct 10 - The January-September freight a joint protocol of intent on studying the possibility turnover of Estonia's Paldiski South Port, a unit of building a new nuclear power plant in Lithuania on of the Port of Tallinn, grew by 41 per cent to March 8. nearly four million tons against the same period last year. EU To Give EUR 74.6 Mln to Support Last year the port handled 2.83 million tons Estonian Fisheries of goods in the first three quarters of the year, Tallinna Sadam reported. Oct 10 - The European Union (EU) last week Handling of liquid cargo increased the most decided to support the Estonian fishing sector this year, up by two thirds and amounting to 2.43 with 74.6 million euros in the next seven million kroons in January-September. years. Handling of rolling stock increased by 35 per An Estonian contribution of nearly 25 per cent to 766,000 tons, while handling of timber cargo cent will be added to the subsidy, the Agriculture added up to 682,000 tons in the nine months, with Ministry reported. no change against the previous year. Rain Vändre, assistant minister of the The amount of transit goods exported in the Agriculture Ministry, said the sum was more than three quarters through the port increased by a double of the fishery subsidies allocated to Estonia quarter to nearly two million tons, while export until the present. increased by 19 per cent to 848,000 tons. "Estonian co-financing will be added to the The volume of transit goods arriving in European Union subsidy as a result of which it will Estonia through the port in the nine months be possible to channel nearly 200 million kroons a increased by 150 per cent to 678,000 tons, while year during the next seven years into the import increased by 42 per cent to 467,000 tons. development of Estonian fishing," Vändre said. The number of passengers passing through In 2007-2013 member countries of the EU the South Port in the first three quarters of this year will start receiving fishery subsidies via the grew by 19 per cent to 144,000. European Fisheries Fund, which will replace the

8 A total of 1,379 ships called at the port The work will be completed by December during the nine months; of these 568 were cargo 2007. ships and 811 passenger ships. Estonian Investment Co Alta Capital Bank of Estonia Assets Up 2.6 Pct in Acquires Finnish Coated Fabrics Maker September Oct 4 - The Estonian investment company Alta Oct 6 - Assets of the Bank of Estonia increased Capital, which recently became sole owner of last month by 796.5 million kroons or 2.6 per the garment maker PTA, continues expanding cent, reaching 30.9 billion kroons (EUR 1.97 and has acquired 100 per cent of the Nordic billion) by the end of the month. countries' leading coated fabrics producer, Oy Gold and net foreign currency reserves stood Scantarp AB of Finland. at 29.3 billion kroons at the end of September, up The new owners plan to reinforce Scantarp's by 1.2 billion kroons or 4.4 per cent over the month. business activities and enlarge the company, Alta The central bank's unencumbered reserve Capital said. grew by 40.2 million kroons or 1.1 per cent, totalling "The future outlook is good and we're 3.7 billion kroons. convinced that we'll continue growing after change The demand for base money increased last of ownership," Scantarp's chief executive Helena month by 1.3 billion kroons or 5.4 per cent. Base Piispa said. money totalled 25.7 billion kroons at the end of the Jaak Raid, a partner in Alta Capital, observed month, including 14.5 billion kroons of account that the Russian and East European market of money and 11.2 billion kroons of cash. technical coated materials has great potential. The sum total of the bank's capital, reserve Founded in 2001, Alta Capital focuses on and profit increased by 42.4 million kroons and investing in and acquiring well-performing stood at four billion kroons at the end of last month. companies. The firm's investment is estimated at over two billion kroons (EUR 127.8 mln). Estonian Banks Report Over 1.3 Mln Online Clients Estonia's Põltsamaa Felix Invests EUR 1.5 Oct 6 - At the end of September, Estonian Mln in Production in 2006 commercial banks had 1,303,335 Internet Oct 5 - The Põltsamaa Felix food producer will banking customers, up by 11,140 over the in October complete implementation of its month. investment plan for the current year which The number of users of the telephone projected placing 23 million kroons (EUR 1.5 banking service grew last month by 2,990 to mln) into the development and modernization 217,756. of production. The largest investment was made into juice Latvian Business Bank Raises Its Stake in production with the aim of boosting market share in Estonia's Krediidipank this segment, the company said. The firm spent 14 million kroons on Oct 6 - Latvian Business Bank (LBB) today modernizing juice production, buying a new increased its holding in the Estonian production line together with a novel packaging Krediidipank to 65.7 per cent. machine which enables it to bottle beverages in LBB acquired 5.9 per cent of the bank's screw-capped containers. The investment was shares from Valentina Otsason, widow of the bank's funded from equity. founder Rein Otsason. Põltsamaa Felix is part of the largest Nordic The Latvian bank is almost 100 per cent food concern Orkla which posted sales of 55 billion owned by one of the largest banks in Russia, the Norwegian kroner in 2005. Bank of Moscow. Established in 1992, Krediidipank is a universal bank providing services via 23 branch CULTURAL NEWS offices across Estonia. The bank earned a profit of Work Commissioned from Estonian 48.13 million kroons (EUR 3.08 mln) in the first nine Composer to Mark Visit of Queen months of the year. Elizabeth II Assets of Krediidipank totalled 4.3 billion Oct 4 - Toivo Tulev, an Estonian composer of kroons at the end of September. the younger generation, is writing a piece of

music to be performed on the occasion of the Estonian Builder Merko Wins EUR 7.32 state visit by Queen Elizabeth II of Britain to Mln Contract to Extend Latvian Town's Estonia later this month. Water Supply System The work will be performed during a concert Oct 5 - The Latvian branch of the Estonian in the Kumu art museum as part of the program of construction company Merko Ehitus has signed the monarch's visit. a 114.5 million kroon (EUR 7.32 mln) contract "The whole program isn't known yet, but with Valmieras Udens, water company of the definitely pieces by Cyrillus Kreek and Arvo Pärt will town of Valmiera in northern Latvia, to extend be performed, and a new piece has been and renovate the town's water and sewerage commissioned on the occasion of the visit from network. Toivo Tulev, one of the most promising young Estonian composers," a spokesman for the British embassy in Tallinn said.

9 Mihkel Kütson Wins Inaugural German Conductor Prize Oct 8 - The German Conductors Prize (Deutscher Dirigentenpreis), awarded for the first time this year, went to the Estonian Mihkel Kütson. Besides Kütson, another Estonian, Hendrik Vestmann, and the American-born conductor Evan Christ also made the final of the competition. The final round took place on Oct 8 before an audience and a jury in the Berlin Philharmonic Hall. In the final, Kütson performed Suite No. 2 from Ravel’s Daphnis and Chloé with Deutsches Symphonie- Orchester Berlin.

IN MEMORIAM Aadu Luukas 1939 - 2006 Estonian businessman Aadu Luukas died unexpectedly on October 7. He was 67. Luukas, for years considered one of the wealthiest people in Estonia, was founder and a major owner of N-Terminal and Pakterminal, key companies in the East-West transit business. He was also involved in charity work and had been elected president of the Estonian Volleyball Federation. Luukas was the honorary consul of in Estonia. Luukas was chairman of the supervisory council of Baltic Chemical Terminal.

ESTONIAN REVIEW (ISSN 1023-1951) Is issued by the Press and Information Department, Ministry of Foreign Affairs ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049 TEL +372 637 7600 FAX +372 637 7617 Estonian Review is also available over the Internet at http://www.vm.ee To subscribe, please contact: [email protected]

10