Estonian Review E E S T I R I N G V A A D E VOLUME 19 NO 15 APR 8 - 14, 2009

FOREIGN NEWS FOREIGN NEWS Paet Discusses Economics, North Korea with Chinese Representatives 8 April - Foreign Minister and Deputy Director of the International Department of the Chinese Communist Party Central Committee Chen Fengxiangi emphasised during their meeting in the importance of international co-operation for overcoming the global economic crisis. Foreign Minister Paet confirmed that the G20 is the appropriate forum for such co- operation. Foreign Minister Paet stated that economic and trade relations between and China are good. “We would still like to further enliven Latvian President Valdis Zatlers and Estonian President Toomas Estonia-China economic relations,” Hendrik Ilves spoke at the Estonia-Latvia Business Forum at the Paet stressed. “The Estonia-China Estonian Chamber of Commerce and Industry, 8 April. economic co-operation commission

meeting this fall in Tallinn will play Presidents Ilves and Zatlers Encourage Economic Co- an important role in intensifying operation economic co-operation,” Paet added. 8 April - As part of Latvian President Valdis Zatlers’ state visit to During the meeting, they also Estonia, an Estonia-Latvia Business Forum took place in the addressed issues related to North Estonian Chamber of Commerce and Industry. The event was Korea. Paet and Fengxiang both organised in co-operation with the Latvian Investment and acknowledged that achieving peace Development Agency, the Tallinn Business Agency, and Enterprise and stability on the Korean peninsula Estonia. is essential. “It is necessary for North The forum was opened by the president of the board of the Chamber Korea to adhere to and honour UN of Commerce Toomas Luman, and opening speeches were given by resolutions and to work in the name President of the Estonian Republic Toomas Hendrik Ilves and President of peace and understanding in north- of the Latvian Republic Valdis Zatlers. Estonian Minister of Economics east Asia, and also to adhere to the Juhan Parts also spoke at the forum. six-party declaration on limiting President Ilves stated, “The common interests of our two nations are nuclear weapons concluded between greater than geographical closeness. We must stick together and co- China, Japan, South Korea, North operate even more than before. Looking past today and the current Korea, the USA and Russia,” Paet crisis into the future, it is essential that businesses participate actively asserted. in shaping the EU Baltic Sea Region Strategy, so that our region will While talking about educational become a better functioning part of the EU internal market.” and cultural relations between the In his opening speech, Latvian President Valdis Zatlers supported two nations, the two parties Ilves’s views and also called upon Estonian and Latvian entrepreneurs expressed satisfaction over long- to have more active co-operation. Regarding the economic crisis, lived and successful co-operation in Zatlers stated, “We must have a strategy for getting out of this crisis.” these fields. Foreign Minister Urmas Estonian Economics Minister Juhan Parts said about the current Paet stated that those interested in economic situation, “During the occupation, we were actually in a so- the Chinese language can learn it at called ‘crisis’ for 50 years. Since we have that experience, we will both Tartu and Tallinn Universities, certainly be able to emerge from this crisis.” and Estonia students have also gone During the forum, director of energy sales of Eesti Energia AS to China to study the language. “We Aivar Tihane introduced his experiences as an Estonian businessman in the hope that soon one will be able to Latvian market. study Estonian in Beijing as well,” Paet said. Continued on page 2

Business Forum region together because joint undertakings have a more effective output. (continued from page 2) The ministers also spoke about co-operation in Director of Sakret AS Andris Vangas gave an the movie industry sphere and between concert overview of the activities of Latvian businessmen in organisations. the Estonian market. Ieva Stukle, an investment counsellor from the Latvian Investment and Development Agency, and Jevgeni Robakov, a Estonian Diplomats Support representative from the law office of Gencs Valters, Entrepreneurial Contacts Abroad talked about co-operation and business 9 April - At the meeting of Estonian opportunities in Latvia. entrepreneurs and diplomats that took place at Within the framework of the business forum, the the Estonian Chamber of Commerce and presentation of the project “Ogu Maize”, which Industry, Foreign Minister Urmas Paet introduces Latvian food in Estonia, took place. A co- emphasised that the Foreign Ministry supports operation agreement was also signed between the the interests of Estonian businesses abroad in director of the Rocca al Mare shopping centre Mati finding both investments and export Pops and the project manager of “Ogu Maize” Aigars opportunities. Strauss. After the agreement was signed, the “In the situation that an Estonian entrepreneur participants were able to sample Latvian foods. needs help finding export markets or an investment, the Foreign Ministry is prepared for multi-faceted co- Foreign Minister Paet Hopes for Visa operation with the Chamber of Commerce and Freedom with Brazil Soon Industry and the entrepreneur,” Foreign Minister Paet noted during the meeting. “For example, 8 April - During his meeting with Brazilian potential partners of Estonian businesses have an Foreign Minister Celso Luiz Nunes Amorimi in increasingly easier time travelling to Estonia from Istanbul, Foreign Minister Urmas Paet countries that have no Estonian representation expressed hoped that visa freedom for thanks to the visa representation agreements we Estonian citizens travelling to Brazil would be have signed,” Paet added. implemented soon. The Estonian ambassadors to Central and Eastern Foreign Minister Paet said that reciprocal visa European nations were meeting with representatives freedom for citizens from both countries would be a of the Estonian Chamber of Commerce and Industry good basis for the further development of bilateral and entrepreneurs for the second time in recent relations. months so that the promotion of Estonian economic “Resolutions to almost all the essential issues interests abroad could be supported by close have been reached in the visa discussions between contacts between businessmen and the foreign Brazil and the European Commission,” Paet service. The last similar meeting was held in explained about current developments in the visa December 2008. freedom process. “We hope that at the meeting of “The Foreign Ministry and its diplomats actively the European Commission and Brazil in April, it will follow the interests of Estonian entrepreneurs and be possible to finalise the text for the visa are prepared to support the activities of Estonian agreement so that the visa freedom agreement businessmen by finding foreign contacts and between the Commission and Brazil can be signed opportunities,” said Paet. this spring,” Paet noted.

Paet and Amorim also discussed Estonia-Brazil relations and agreed that developing trade and Estonia Fourth in EU in Terms of Civilian exchanging business delegations would give Mission Experts per Number of Population momentum to economic relations. “Brazil is the 13 April (BNS) - Estonia has dispatched 16 most important Latin American business partner for experts to civilian missions of the European Estonia,” Paet stated. Foreign Minister Paet also Union; in terms of experts per number of issued an invitation for his Brazilian colleague to population, Estonia ranks fourth in the visit Estonia. European Union. Of the 16 experts Estonia has dispatched to Estonian, Latvian Culture Ministers civilian missions, six are contractual experts, it Discuss Entry of Baltic Chain onto appears from statistics of the Foreign Ministry. In UNESCO List absolute figures most EU member countries have dispatched more experts than Estonia. But when 8 April (BNS) - Laine Jänes and Ints Dalderis, looking at number of experts dispatched per number culture ministers of Estonia and Latvia of population, Estonia ranks fourth among member respectively, discussed the entry of the Baltic countries of the EU. Chain into the UNESCO Memory of the World The list is headed by , which has Register during their meeting in Tallinn. The dispatched a total of 111 experts to civilian countries filed the application for it jointly and the missions, one expert per 47 300 residents. decision will apparently be made public this (114 experts, one per 62 914 residents), Denmark summer. (87 experts, one per 63 324 residents) and Estonia, Jänes and Dalderis also discussed issues one expert per 81 211 residents, follow. connected with creative economy. Both Estonia and The United Kingdom (160 experts, one per 381 Latvia have the aim of channelling as much 958 residents), Cyprus (two experts, one per 398 structural funds as possible into creative industries, 370 residents, and Spain (61 experts, one per 664 and the ministers also found that it was necessary to 344 residents) bring up the rear. plan development of the cultural export of the Baltic the international visibility of the school is an DOMESTIC NEWS important goal. “We must make joint efforts to maintain the school as an international educational Estonian National Museum Celebrates institution," Aaviksoo said. th 100 Anniversary At the meeting, the further plans of Estonia and 14 April - “The Estonian National Museum grew Latvia were also discussed, as well as the current out of a desire to develop our national experience in the participation in the NATO culture,” said President Toomas Hendrik Ilves Afghanistan mission. today in the at the The next regular meeting of the ministers of ceremony marking the 100th anniversary of defence of Estonia, Latvia and Lithuania will take the Estonian National Museum. “This idea grew place in Sagadi, West-Viru County, from 23-24 April. along with our national consciousness and intellectuals, and progressed from the establishment Estonian Navy to Mark Completion of of our own museum to the establishment of our Mine-Hunter Procurement state.” 13 April (BNS) - The Estonian Defence Forces According to the Estonian head of state, during will on Friday mark the completion of a major the last century the museum has become a purchase of used naval mine-hunters from memorial to its founders, and more generally to the Great Britain and will briefly open the three independent consciousness and existence of the ships to the public the next day. Estonian nation. The ceremony to mark the completion of the “The collection of our spiritual and material procurement of the Sandown class mine-hunters will heritage resulted in the understanding that Estonia’s be held next to the Admiralty Basin in the Old Port own culture is old and valuable,” said President of Tallinn. Ilves. “This wealth supported our consciousness. Our To attend the function are Permanent language and culture grew from being an indicator Undersecretary of the Defence Ministry Riho Terras, of social affiliation to being the foundation of Deputy Secretary General in charge of defence Estonian identity.” investments Martin Hurt, and representatives from “During the last century, the Estonian National the British Ministry of Defence and Navy. Museum has become one of the most firm All three of the vessels, or the Admiral Cowan, cornerstones of our independence, and was the Sakala and Ugandi, will be moored in the Old Port on source of support in even the most difficult times.” Friday. On Saturday visitors will be allowed on board President Ilves noted that the founders of the from 9-12 a.m. museum did not want to preserve Estonian culture Delivered in January 2009, the Ugandi was the as a token of former times, as an exposition. last of the three boats to join the Estonian fleet. The Instead, the museum was seen as having a role in first Sandown Class boat, EML Admiral Cowan, was reflecting the future of the nation. He said that the handed over to Estonia in April 2007 and the second founders were helped by the belief that Estonians ship, Sakala, in January 2008. only have a future as progressive cultured people. Under a contract signed with Great Britain in “A proper museum is a source for the creation of September 2006, the total cost of the three vessels culture, a modern scientific centre, a bridge between was 800 million kroons (EUR 51 mln), including yesterday and tomorrow,” stressed the head of repair and maintenance work of the ships and state. training of the crew in the UK.

DEFENCE NEWS ECONOMIC NEWS Aaviksoo Discussed Future of Air Policing US Company May Become Operator of with Latvian Colleague Tallinn’s 8 April - Today, Minister of Defence Jaak 8 April (BNS) - The city government may give Aaviksoo met with his Latvian colleague the right of superficies for Tallinn's Linnahall Imants Lieģis, with whom the future of for 99 years to the US company Tallinn common defence-related co-operation between Entertainment LLC, which is planning to the Baltic states was discussed. renovate the large Soviet-era concert venue at Aaviksoo and Lieģis discussed the future of the a cost of more than a billion kroons (EUR 64 common air policing issue in the Baltic states and mln). the NATO air policing training held in the air space of The goal is to create a top-level integrated fair, Estonia, Latvia and Lithuania. conference, entertainment and leisure centre, at the “According to the members of the Air Forces, it same time preserving the cultural value of the was a very successful training that was not confined buildings situated on the properties of the Linnahall to only air policing procedures, but the execution of area, it appears from the materials of the agreement active air defence operations was practised as well. presented to the media by Mayor . In addition to practical value, this and subsequent Under current plans, the renovated Linnahall trainings will have a significant political meaning for should be ready by 2011, when Tallinn assumes the the Baltic states - there are no old and new NATO title of European Capital of Culture. member states, but a common and undivided The remaining part of the development project, security space of the entire Alliance,” said Minister of which includes the construction of a hotel, various Defence Aaviksoo. catering and entertainment facilities, laying out of The Ministers of Defence stated that the Baltic up to 3 000 parking places, linking Linnahall with the Defence College is the most outstanding and nearby terminals of Tallinn's passenger port by a successful example of the defence-related co- bus or a tram line, and the construction of operation between the Baltic states, and increasing

3 Linnahall's own port, should materialise in the The piano factory has so far sold 90% of its following years. production on the U.S. market. The Estonia pianos The developing company is owned in equal parts became so popular there that the company lacked by RSL Capital, GF Capital Management & Advisors, the capacity to produce more for other markets. and Remi International. The global economic crisis has affected the piano maker's sales, but this gives the company an Sales Proceeds of Kaubamaja Retailer Up opportunity to expand beyond the United States, 3.7 Percent on Year Laul said.

13 April (BNS) - The consolidated revenue of the Output of Narva Oil Refinery Hits New Estonian Tallinna Kaubamaja retail group totaled 1.52 billion kroons (EUR 97 mln) High according to non-audited figures in the first 9 April (BNS) - Narva Õlitehas (Narva Oil three months this year, 3.7% more than in the Refinery), a subsidiary of the state-owned same period last year. Eesti Energia group, boosted its shale oil "Although all traders have been hit hard due to output by 22% to 158 200 tons in the financial the crisis, the Kaubamaja group has managed to year ending 31 March. increase its market share and widen activity by "In recent years Eesti Energia has earned opening new stores," Tallinna Kaubamaja board significantly more income per one ton of oil shale in chairman Raul Puusepp said. the oil refining industry than in the power generating The consolidated revenue of the Selver chain industry," Eesti Energia board member Harri Mikk totalled 1.1 billion kroons in Q1 this year, 16% more said. on year, the group informed the stock exchange. Even though the price of oil products has The sales proceeds of the department stores declined over the past year, future contracts business segment totalled 276.2 million kroons, concluded by Narva Õlitehas earlier are hedging it down by 21% compared with the same period last against price decreases, Mikk said. year. Narva Õlitehas exports about 40% of its output The revenue of the real estate business segment and sells the rest to local thermal energy producers. in the first three months of 2009 totalled 12 million The company processes 1.3 million tons of shale kroons, up 17% compared with the same period last oil annually, producing liquid fuels of different year. fractions, high-calorie shale oil gas, and road The revenue of the car dealership segment in the bitumen. three months totalled 62.5 million kroons. A total of 314 new vehicles were sold in three months, 204 Profit of Alexela Terminal Up Nearly vehicles less than in the same period last year. Threefold Last Year The revenue of the footwear sales in Q1 in the turnover of the group was 40.5 million kroons. 13 April (BNS) - The net profit of AS Alexela Terminal, operating at the Paldiski South ’s Baltic Queen to Start Sailing Harbour, grew last year by 185% to 44.4 million kroons (EUR 2.94 mln). Route In the financial year ending on 30 September 8 April (BNS) - The Baltic Queen, a brand new 2008, the operating profit of Alexela Terminal was vessel being completed for Tallink Grupp of 20.1 million kroons, while in the same period the Estonia at a Finnish shipyard, is scheduled to previous year it was 31 million kroons. start sailing on the Tallinn-Stockholm route on Last year the company earned 139.2 million 24 April. kroons of revenue, 10.5% less than the year before. It will replace the Romantika, which will be The stock capital of the company grew by 12.65% transferred to the -Stockholm line. Alongside last year. the brand new ship, the Victoria I will continue 1 026 thousand tons of goods passed through the sailing on the Tallinn-Stockholm route. terminal last year. Luulea Laane, chief of communication at Tallink, Alexela Terminal is owned by four companies, told BNS that according to existing plans the with the majority shares controlled by AS Alexela Romantika should start plying between Riga and Logistics. Stockholm on 8 May. The Baltic Queen, which cost 180 million euros to build, is the last of the new vessels built under ESTONIAN REVIEW Tallink's fleet renovation programme. (ISSN 1023-1951) The ship is 212 meters long, 29 meters wide and Is issued by the can accommodate up to 2 800 passengers. Press and Information Department, Ministry of Foreign Affairs ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049

TEL +372 637 7600 Estonia Piano Factory Gaining Foothold in FAX +372 637 7617 Asia Estonian Review is also available over the 14 April (BNS) - The Tallinn Piano Factory, which internet at http://www.vm.ee so far has sold most of its production in the To subscribe, please contact: [email protected] United States, plans to increase sales on the Estonian Review is compiled in co-operation with Asian market. the http://www.bns.ee/ The owner of the factory, Indrek Laul, said the company has concluded a deal to sell pianos to Japan, will soon close talks in China, and has been negotiating with dealers to start selling on the Arab market as well.

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