Estonian Review E E S T I R I N G V A A D E VOLUME 16 NO 37 SEP 20 – 26, 2006

TOP NEWS Elected Estonian President Sep 23 - Socialist MEP Toomas Hendrik Ilves, 52, was elected 's for the next five years by the country’s electoral college. Ilves received 174 votes in a secret ballot, one more than the majority of 173 votes needed for a candidate to get elected by the 345-member body. The other candidate, incumbent President Arnold Rüütel, 78, received 162 votes. There was one invalid ballot and eight ballots were left blank. All 345 members of the electoral college registered for the vote and cast ballots. Toomas Hendrik Ilves, currently first vice- president of the European Parliament Committee on DOMESTIC NEWS Foreign Affairs, was born on Dec. 26, 1953 in Estonian PM Believes That Ilves Will Be , Sweden, to where his family had fled the Soviet occupation. Uniter as President He grew up in the United States and was Sep 23 - The chairman of the Estonian Reform educated as a psychologist, attending and receiving Party, Prime Minister , said that he degrees from Columbia University and the University believes that Toomas Hendrik Ilves will emerge as of Pennsylvania and then working in academic a president who unites the people. positions. Besides that, the Reform Party believes that Ilves Ilves worked as analyst and researcher with will be a president promoting a positive image for Radio Free Europe in Munich, Germany, from 1984- Estonia abroad, Ansip said. 1988, and as head of the Estonian desk of Radio Free "We are happy that we were able to carry out the Europe from 1988-1993. will of the people," said Ansip in thanking the electors. After returning to Estonia and relinquishing "We have reason to be glad not so much because his US citizenship, Ilves served as Estonia's Toomas Hendrik Ilves was our candidate, but first and ambassador to the United States from 1993-1996. foremost because Estonia got a good president," he said. He became foreign minister in December 1996 and Ansip also said he was glad that civic society and served in that position until September 1998, at open political culture had triumphed and attempts to which point he began campaigning for the Moderates make them fail had not succeeded. (now the Estonian Social Democratic Party) in the parliamentary elections. Estonia's Ilves Says Election Result Was Not In March 1999, after the elections, he Surprise became foreign minister again, serving until 2002. He was member of the parliament from 2002-2004 Sep 23 - Toomas Hendrik Ilves, who was elected During 2001-2002 he was the leader of the president of Estonia for the next five years, said in Moderates. In 2004 Ilves was elected to the his remarks after the election that the outcome of European Parliament for the Estonian Social the vote did not come as a surprise. Democratic Party. He sits with the Party of European Ilves added that the outcome did not reflect the Socialists group. stance of the Estonian population, as recent public approval surveys had put his rating at between 65-70 percent. ESTONIAN REVIEW Yet no one should be disappointed with the (ISSN 1023-1951) election outcome since it is the result of a democratic Is issued by the process, said Ilves. Press and Information Department, Ministry of Foreign Affairs Ilves added that as president he considers it his ISLANDI VÄLJAK 1, , ESTONIA 15049 task to be a defender of the citizen and bring the state TEL +372 637 7600 back nearer to the citizen. The Estonian society is split FAX +372 637 7617 not along the lines of support for one or another Estonian Review is also available over the presidential candidate but along the view of citizens, he Internet at http://www.vm.ee said. To subscribe, please contact: [email protected] (Continues on page 8)

PAET ATTENDS EU FOREIGN Middle East. He also voiced recognition of the activity of Abbas, saying it deserves international MINISTER’S WEEK IN THE support. FRAMEWORK OF UN GENERAL Apart from the unity government, financial ASSEMBLY aid to Palestine was talked about. The situation in the Middle East was the Estonia Wants To See More Active EU Role main topic also at the ministers' breakfast. The in Georgia, Moldova foreign policy chiefs found that reviving the peace Sep 23 - The should adopt a process is of utmost importance. more active role in the search for solutions to Paet said that military solutions are the frozen conflicts in Georgia and Moldova, producing no result and that a political solution has Estonian Foreign Minister Urmas Paet said in to be found by means of negotiations. New York. "Definitely the possible solutions to the issue Formin: Afghanistan Must Be Rebuilt by NATO, of the status of Kosovo cannot be brought over to EU and UN these regions," Paet said. Sep 22 - In rebuilding Afghanistan, NATO, the In regard to the frozen conflicts of Georgia European Union and the United Nations must and Moldova, both the EU and Russia expressed all work hand in hand, Estonian Foreign concern about future developments in these Minister Urmas Paet said after a meeting with conflicts, but differed on the reasons which had NATO colleagues in New York. caused the conflicts. The foreign policy chiefs expressed their The frozen conflicts in Georgia and Moldova concern at poppy-growing having increased almost were discussed in New York by the foreign ministers by half in Afghanistan this year and found that the of the EU and Russia, with matters related to the struggle against narcotics needs to be made much EU-Russia partnership agreement, the situation in more efficient. the Middle East, Sudan and Iraq as the other topics Paet emphasized that the problems of discussed. Afghanistan cannot be solved by military means In the view of the EU foreign policy chiefs alone. the new partnership agreement with Russia must be "It is necessary to create a working based on what has already been agreed as regards infrastructure, set up schools and hospitals," he the four common spaces. said. Paet took part in a foreign ministers meeting Paet observed that Afghanistan was one of of the EU and the United States, where the situation the target countries for Estonia in development in Russia, the humanitarian catastrophe in Sudan cooperation. Earlier this week Estonia dispatched a and talks on the status of Kosovo were talked about. diplomat to Afghanistan whose task is to specify the Speaking about the situation in Russia, the areas where Estonia could use most efficiently the foreign ministers paid attention also to the energy means it has allocated for development cooperation. policy of Russia, with the Estonian minister saying a In addition to the situation in Afghanistan, realistic approach to Russia's energy policy was the ministers discussed NATO enlargement and necessary and that energy resources could not be cooperation with partner countries from outside the used as a means of political pressure. alliance. A joint lunch of the foreign ministers of the EU, NATO and Switzerland took place during which Formin: NATO Should Make Invitations In the problems of Afghanistan and the Middle East 2008 were talked about. The EU foreign ministers also heard an overview by Martti Ahtisaari about the Sep 22 - At the NATO summit in 2008 talks on the status of Kosovo. invitations should be handed to those candidates who are ready to join the alliance, Formin: Palestine Unity Government an Estonian Foreign Minister Urmas Paet said. Important Step toward Peace "Despite Prime Minister Viktor Yanukovich's lukewarmness toward NATO, NATO must continue Sep 20 - The creation of a national unity cooperation with Ukraine," Paet said after a meeting government in Palestine will be an important of NATO foreign ministers in New York. "Ukraine is step on the path toward peace, Estonian too important to be written off. Speaking about the Foreign Minister Urmas Paet said in New York. alliance's partnership with countries which are not Paet, who attended a meeting of EU foreign members of NATO, Paet said: "Estonia favours ministers with Palestinian President Mahmoud Abbas flexible forms of cooperation and does not see a on the sidelines of the 61st session of the United direct need to automatically create new bodies." Nations General Assembly, expressed hope that At the same time, he did not rule out the Abbas will manage to find a way to put together a need to form new permanent cooperation structures, national unity government. saying however that "we should not start creating "We hope that a broad-based government cooperation forms that are half-artificial in order to will be formed on the basis of the criteria supported fill them with content only later." by the international community, which are Paet also said partner countries must be abandoning of weapons and violence, recognition of monitored to make sure they are observing NATO Israel, and fulfilment of the agreements signed so common values. far,” Paet said. He said it needs to be agreed how to behave The minister underlined that this would be with a country which has deviated from these an important step toward achieving peace in the values. Also discussed during the meeting was the Paet said the meeting also dealt with situation in Afghanistan. economic cooperation between the two countries and possible sharing of Estonia's reform experience. Formin: Unity of EU Important for Paet added that Macedonia has made Achieving US Visa Waiver progress in the fight against corruption, yet particular attention needs to be paid to reforming Sep 22 - In his remarks after a meeting with the court and police system and implementing the counterparts from the countries which are principles of law-based state. seeking to join the US visa waiver program, Paet said Estonia already has conveyed its Estonian Foreign Minister Urmas Paet said reform and EU accession experience to Macedonia unity of the European Union was important for and intends to continue doing so in the future. achieving that goal. Paet reaffirmed Estonia's wish to host the Foreign ministers from the new EU member Baltic Charter and Adriatic Charter foreign and states discussed a common strategy to bring about defence ministers meeting in early 2007. the abolition of visa requirements for travel to the Speaking about economic cooperation, the United States, in which solidarity between all the sides found that there is still plenty of room for countries of the EU is playing an important role, development. Paet emphasized the importance of according to Paet. direct contacts between both the chambers of "I'm glad that the EU member states are as commerce and industry as well as entrepreneurs of one over this issue and the European Commission the two countries. has been doing a good job as well," Paet said. Paet invited Milososki to visit Estonia in the Paet emphasized that on Estonia's part all near future and repeated an invitation for the prime but one of the conditions for joining the visa waiver minister of Macedonia to visit Estonia. program had been met. "The only unsolved issue is the visa refusal Formin: Estonia Hopes Singapore rate, which in Estonia's case is higher than required by the United States," Paet said. Investments Will Continue "Here a lot can be done by citizens of Sep 21 – Estonia wants investments originating Estonia, by not overstaying their visas and not from Singapore to continue, Estonia's Foreign presenting incorrect data," he said. Minister Urmas Paet said at a meeting with his Singaporean counterpart George Yong-Boon Lebanon Thanks Estonia for Its Aid and Yeo in New York. Support "Singapore has been in the Top 10 countries investing in Estonia for years and we hope that it Sep 22 – Estonian Foreign Minister Urmas Paet will remain that way also in the future," he added. met his Lebanese counterpart, Fawzi Salloukh, The two ministers spoke about bilateral in New York. economic relations, stating that they are satisfied At the meeting, Foreign Minister Salloukh that the development of economic relations has gave a thorough overview of the situation in been on an upward trend. Lebanon after the cessation of open hostilities. The As Paet said, Singapore is the No 1 trading Lebanese Foreign Minister thanked Estonia for its partner for Estonia in Southeast Asia, with trade moral and monetary support. between the countries increasing 40 percent last According to Minister of Foreign Affairs Paet, year. Estonia followed this summer’s events in Lebanon The ministers voiced their pleasure at the with concern and trepidation. “We empathize with signing of an agreement on the avoidance of double the people of Lebanon over their losses,” said Paet. taxation on Sep 20, saying that the agreement “Deaths of civilians in such conflicts are helped economic ties develop faster still. unacceptable.” The Estonian Minister of Foreign Paet said many unused opportunities still Affairs expressed hope that the reconstruction of existed in the field of transit of goods. Estonia would Lebanon would proceed rapidly and confirmed that be a very good channel of transit for Singaporean Estonia would support efforts according to its goods headed to the West, especially to the markets means. of Northern Europe, he said. The two ministers also exchanged thoughts Another topic discussed was the about the Middle East as a whole. They said that appointment of honorary consuls. resolving the Palestinian question would lead to stabilization of the whole region. The foreign ministers expressed hope that the Middle East peace Jordan Interested In Estonian Oil Shale process would be resuscitated and that the sides Technologies could agree on a comprehensive peace plan. Sep 21 - Estonian Foreign Minister Urmas Paet They also touched on bilateral relations, met his Jordanian counterpart, Abdelelah Al- which both officials said needed to be more active. Khatib, in the framework of the UN General Assembly in New York. Estonia Backs Macedonia's Wish to Join Al-Khatib said Jordan, one of the few EU, NATO landlocked Arab countries to not have an oil production, is very interested in Estonian oil shale Sep 20 - Estonia backs the aspiration of technologies. Macedonia to become a member of both the "We would benefit greatly from cooperation European Union and NATO, Estonia's Foreign in this field (oil shale), we're ready to learn from Minister Urmas Paet said at a meeting with his you," the Jordanian minister said. Macedonian counterpart Antonio Milososki in The ministers also agreed that both countries' New York. businesspeople should be encouraged to establish

3 more direct contacts as bilateral economic relations working holiday scheme. Under the scheme have good prospects in several fields such as visas guaranteeing the right to work would be issued tourism. to nationals of either country between the ages of The Tallinn University of Technology 18 to 30. concluded in March an agreement on cooperation in Minister of Foreign Affairs Paet said that the oil shale research with Jordan's International agreement would give youths of both countries the Corporation for Oil Shale Investments. opportunity to broaden their perspectives. “Above The Estonian and Jordanian minister also all, the visa is intended for language learning and spoke about bilateral relations stating that they are getting to know the country, but it also allows the good but should be intensified. The ministers said holders of the document to work at different that there have been high-level visits in the past but employers,” noted Paet. not recently. Estonian Foreign Minister Urmas Paet The sides also exchanged thoughts on invited his Jordanian counterpart to Estonia. economic ties. They noted that Estonia and New The ministers introduced their countries’ Zealand were both known as states with a liberal candidates to the post of UN Secretary General. and open economic policy, although mutual economic relations are unfortunately modest. Formin Meets With Kazakh, Swiss, Czech According to Paet, one reason for this fact is the Counterparts geographic distance. ”Yet there is certainly room for growth of tourism-related relations, especially Sep 22 – Estonian Foreign Minister Urmas Paet considering the fact that New Zealand no longer expressed delight at the planned launch of an requires visas of Estonian citizens,” said Paet. Estonian-Kazakh joint venture in electronic mail in Kazakhstan in October at the meeting Estonia Interested In Closer Ties with with Kazakh Foreign Minister Kasymzomart Tokayev. Guatemala With the state-owned Eesti Post as the Sep 20 - Estonia is interested in having closer Estonian partner, the company plans to make ties with Guatemala, Estonia's Foreign Minister computerized sorting of bills and sending them by e- Urmas Paet said at a meeting with his mail possible in Kazakhstan. Guatemalan counterpart Gerth Rosenthal in Estonia's Foreign Minister Urmas Paet New York. continued a series of bilateral meetings in New York, The two ministers spoke about cooperation meeting with his Kazakh, Swiss and Czech in international organizations, including support for colleagues. each other's candidates in the UN institutions, as Economic cooperation was the primary issue well as about possibilities to intensify relations at the meeting with Kazakh Foreign Minister between the countries. Tokayev. The ministers said that economic Paet said Estonia was interested in both cooperation was growing at a rapid rate. bilateral trade as well as cooperation in tourism. During the meeting with Swiss Foreign Visa freedom, which took effect in 2004, has Minister Micheline Calmy-Rey the traditionally good created good preconditions for developing ties in relations between the two countries were spoken tourism, Paet said. about. The ministers weighed possibilities for The ministers found that high-level visits cooperation in culture and education. Paet said also would help intensify contacts between Estonia and student exchanges could be of interest for Estonia. Switzerland. Furthermore, the possibility to appoint honorary Paet said Estonia would be pleased to consuls and developments in South America were welcome the Swiss foreign minister in Tallinn in the talked about. near future. Paet mentioned of a large-scale Estonian Paet Meets Reps of American Jewish festival, Culturescapes, to be held in Basel later this Committee fall. In Paet's meeting with Czech Foreign Sep 21 - Estonia's Foreign Minister traditionally Minister Alexander Vondra, they discussed meets with representatives of Jewish supporting the candidacy of their respective organizations during sessions of the UN countries in international organizations. General Assembly. Estonia backs the candidacy of the Czech As Paet said, the Jewish community of Republic to serve as a non-permanent member of Estonia has made a significant contribution to the the UN Security Council in 2008-2009. development of the Estonian state, economy, Paet spoke about Estonia's plans for the science and culture. He said members of the Jewish future as regards UN structures. community have always been part of Estonia's society. New Zealand Foreign Minister to Visit Speakers on behalf of the American Jewish Committee spoke with satisfaction about the Estonia expected completion late this autumn of a Sep 20 - Minister of Foreign Affairs Urmas Paet synagogue in Tallinn, built according to an original met his New Zealand counterpart, Winston design by Estonian architects. The cornerstone of Peters, at the EU foreign ministers’ week held the synagogue was laid by Israel's President Moshe in the framework of the 61st session of the UN Katzav during a state visit last year. General Assembly in New York. Paet and representatives of the Jewish Paet and Peters discussed the latter’s visit to organization exchanged thoughts about international Estonia next week. In the course of the visit, Estonia current events. and New Zealand hope to sign an agreement on a

4 Estonia Establishes Diplomatic Relations ministers from the and Adriatic Charter with Uganda countries will take place in the Estonian capital early next year, Paet said. Speaking about Ukraine, Paet Sep 20 - The foreign ministers of Estonia and said he and his counterpart agreed on the need to Uganda signed documents on the continue supporting Ukraine. "Our experience from establishment of diplomatic relations. the past 15 years will come in handy to Ukraine, Meeting in New York, Estonia's Foreign too," he observed. Minister Urmas Paet and his Ugandan colleague, The ministers talked also about the Sam Kutesa, spoke about economic development of enlargement of the European Union's border-free the two countries and possibilities to find candidates Schengen area. for honorary consuls. Lithuania's Foreign Minister Petras The foreign ministers also exchanged Vaitiekunas asked in a meeting with Estonian Prime thoughts about the situation in Sudan, finding that Minister Andrus Ansip whether Estonia would be UN peacekeeping forces must be sent into Sudan as ready to team up with his country to establish power quickly as possible. links with Sweden and Poland. Ansip and Vaitiekunas, who discussed FOREIGN NEWS energy security aspects of Baltic cooperation, agreed Barroso Says Looks Forward to New that it is vital for the three countries to link their Estonian President's Contribution to power networks with energy systems of the Nordic and Central European countries. European Debate The Lithuanian minister briefed Ansip about Sep 26 - President of the European Commission his country's steps to set up energy links with Jose Manuel Barroso, congratulating Toomas Sweden and Poland and asked whether Estonia Hendrik Ilves on his election for Estonia's next would be prepared to join. Viability studies of both head of state, said he is looking forward to projects are underway. Ilves' contribution to the European debate Ansip for his part gave assurances of from his new position. Estonia's support for all initiatives to ensure the Barroso congratulated Ilves on his election region's energy security but noted that it is possible on behalf of the Commission and on his own behalf. to give an opinion on potential participation in “Your election comes at an important time concrete projects after thorough rate of return for both Estonia and the European Union. You know analyses are carried out. well the structures and workings of the European The premier and the Lithuanian minister Union and I look forward to your contribution to the discussed also the two countries' bids to join the European debate from your new position," the euro zone and the border-free Schengen area. In message reads. Ansip's opinion, all new member states of the The European Commission will continue to European Union would benefit from regular support fully Estonia in whatever way it can, Barroso information exchanges and taking a common stand said. on those issues. Vaitiekunas said Lithuania has started Nuclear Power Plant Project in Focus of bilateral consultations with Kazakhstan, Moldova and Lithuanian Foreign Minister’s Visit to Romania about amending agreements concerning road transport and changes can be expected soon. Estonia Speedy success in getting a corresponding Sep 26 - Questions of energy supplies and agreement with Russia changed is doubtful, he above all the Ignalina nuclear power plant admitted project were in the focus at visiting Lithuanian The Lithuanian minister met also with the Foreign Minister Petras Vaitiekunas' meetings chief executive of Eesti Energia, Sandor Liive. in Estonia. At Vaitiekunas' meeting with the head of the Estonian Foreign Minister Urmas Paet said he parliamentary European Affairs Committee, Kristiina and his Lithuanian counterpart talked about bilateral Ojuland, and Foreign Affairs Committee chair Enn relations and a number of economic questions, Eesmaa the EU's energy policy and energy security, primarily those related to the energy sphere. accession to the Schengen area, cooperation in the Estonia is interested in the future of nuclear question of foreign missions, the bloc's immigration energy in Lithuania, Paet said, adding that the policy and other issues were under discussion. respective decisions have to be made by the national power supplier Eesti Energia after economic Estonian MEP Urges European gains from participation in the project are clear. Commission to Defend Moldova's Among economic questions discussed by the Territorial Integrity ministers were also preparations for the adoption of the common euro currency, and the Lithuanian Sep 25 - Estonian member of the European minister gave Vaitiekunas an overview of crude Parliament Tunne Kelam called on the supplies of the Mazeikiai refinery. European Commission to take more forceful Paet and Vaitiekunas discussed also NATO- steps to defend the territorial integrity of related questions, among them the upcoming Moldova. summit of the alliance, policing of the Baltic Addressing a plenary session in Strasbourg, countries' airspace and NATO missions abroad. Paet Kelam said the European Commission should view noted that Estonia and Lithuania hold similar views withdrawal of Russian troops from Moldova as a test on both the transformation and enlargement of the alliance. of trust in the process of preparing a new Another subject under discussion was partnership and cooperation agreement. relations with Russia, Ukraine and the Balkan The Transnistrian separatist group, which countries. A meeting of foreign and defence lacks international recognition, recently held a

5 referendum which was supposed to give a seal of "I am convinced that we shall first find a approval to the idea of uniting the eastern part of solution for the problems on the table and then we Moldova with Russia, the lawmaker said. can look in which direction to proceed," the diplomat Transnistria, which has been described as a said. country of bandits, remains a dangerous centre of Estonia and Russia are neighbours and arms smuggling and black market, he pointed out. therefore relations need to be developed in a way that is customary between good neighbours, "All this is possible owing to the continued Uspensky said. "In the minds of Russia and Russians presence of Russian troops which remain there the attitude towards Estonia and has after despite Moscow's promise ten years ago to pull out all a friendly colouring," he stated in the interview, its troops from Moldova," Kelam said. which did not touch on the situation of Estonia's Such a situation is but one illustration of non-Estonian population. Moscow's regular attempts to undermine As the first and most urgent problem to be neighbouring countries' sovereignty and preserve its settled, the ambassador mentioned the issue of military presence outside the borders of Russia, he border treaties. said. He admitted that there will be no new border Kelam urged the European Commission not negotiations between the two countries. Estonia has just to voice its concern over such a situation but not considered this necessary, either. look on withdrawal of Russian troops from Transnistria and Moscow's respect for neighbouring French Ambassador Pays Farewell Visit to countries' territorial integrity as a test of trust on the Estonian President road towards concluding a new EU-Russian cooperation and partnership agreement in 2007. Sep 26 - Ambassador of France Chantal de Ghaisne de Bourmont paid a farewell visit to Estonian President Arnold Rüütel; the Ivory Coast Asks Estonia to Hold Toxic president conferred the Order of the Cross of Waste Ship , 1st class, on the envoy. Sep 26 - Ivory Coast has asked Estonia to Rüütel thanked the ambassador for her detain the Panamanian-registered tanker contribution to making her country known in Estonia Probo Koala. and diversifying ties between the two countries. The Government of Ivory Coast sent a legal De Bourmont thanked the president for the assistance request to Estonian authorities via honour, adding that she is happy to have been able Estonia’s Embassy in Paris. Estonian authorities to make a contribution to the development of detained the ship. French-Estonian ties. "In the four years of intense work in Estonia I discovered for myself this very strong and deeply Estonia Concludes Diplomatic Relations European country and nation. I saw the great with Micronesia adaptability of your country in the realm of economy Sep 22 - Estonian Ambassador to the United and politics alike," the outgoing ambassador said. States Jüri Luik and Ambassador of the Federated States of Micronesia Jesse DEFENCE NEWS Marehalau signed a joint communiqué in Estonian Soldiers Return to Afghanistan Washington whereby the Republic of Estonia and the Federated States of Micronesia enter after Holiday into diplomatic relations. Sep 25 - Members of the Estonian infantry unit In the conversation that followed the ESTCOY-2 headed back to Afghanistan after a ceremony, Luik and Marehalau discussed the history three-week leave. of their respective countries, relations with the The 37-strong unit under the command of United States of America as well as the economy Lt. Ain Tiidrus arrived in the mission area in and environmental policy. Touching on the potential southern Afghanistan at the end of May. for development of bilateral relations, the Troops of the NATO-led International ambassadors acknowledged that the fields of Security Assistance Force (ISAF) in six southern cooperation highest in potential, such as tourism, provinces of Afghanistan operate under the should be explored, and discussed the possibilities to command of a multi-national brigade. Subordinated find candidates for the honorary consuls. They also to the same brigade is the British battle group discussed the role of small states in the UN and the serving in Helmand province of which the Estonian upcoming election of the UN secretary general. contingent is a part. At present 78 Estonian soldiers are serving Russia's New Envoy to Estonia Not in Afghanistan but the strength of the Estonian Promising Changes in Bilateral Relations contingent is set to increase to 120 by the end of the year. as Yet In December the parliament extended Sep 26 - Russia's new Ambassador to Estonia, participation of Estonian soldiers in the operation in Nikolai Uspensky, is not yet promising winds of Afghanistan by two years, with up to 150 soldiers to change in the two countries' relationship be sent to that country at any one time. whose key problem, in his opinion, is the lack The have been of a border treaties. taking part in the operation in Afghanistan since “There are many problems in the bilateral 2003. relations that need to be resolved and it's not a question of whether but when," the ambassador added.

6 Estonian Iraq Unit to Continue Service in troops in Iraq, the defence forces have started New Area of Responsibility preparing a new unit for deployment in Iraq. The training of the light infantry platoon Sep 25 - The Estonian light infantry platoon ESTPLA-14 began in August and will last till ESTPLA-13 deployed in Iraq continued service December, defence headquarters said. Participants after a two-week leave in a new area of in the training number 40 while the mission unit will responsibility near the capital Baghdad. consist of 34 troops, including two logistics The platoon started operations by specialists. The rest of the soldiers in training will familiarizing itself with the new area of responsibility remain in reserve in Estonia. which lies to the northwest of its base, Camp Taji. The commander of ESTPLA-14 is 2nd Lt. Camp Taji is situated about 20 kilometres Ranno Raudsik. north of Baghdad. The area of responsibility includes a road leading north from the capital city, which is Estonian Army Commander Advises EU to one of the most important highways in the region. The task of the unit is to reinforce a US Use NATO Experience for Battle Groups Army company that has been serving in this area Sep 20 - Commander of the Estonian defence and increase the presence of coalition forces in the forces Vice Adm. Tarmo Kõuts has advised the region. European Union to use the harmonization of "The assignment of a new area of political and military planning that works in responsibility to the Estonian unit can be taken as NATO in the creation of the EU battle groups. recognition, helping others shows our strength. The During a meeting of the commanders of the company in whose ranks we'll be acting values defence forces of Estonia, Norway, Sweden and cooperation with us highly," the chief of the unit, Lt. Finland in Sweden, ensuring of strategic reserves Meelis Jõemaa, said. and the strategic transport capability of the Nordic ESTPLA-13, which has been serving in Iraq Battle Group was talked about. since the beginning of June, was on leave in Estonia Kõuts said that without doubt, Estonia from Sept. 4 through 18. The platoon's mission runs cannot assume additional commitments. till mid-December. "At the same time, when there's a political In the first three months of service in Iraq decision to ensure participation in the battle group, the unit was involved in five combat actions and two it is a task of the defence forces to implement it," he attacks with improvised explosive devices. Estonian added. soldiers detained in the course of patrol and ambush Also discussed were the topics of technical operations 23 persons suspected of terrorism, supply and training of the units, as well as possible including one group of suspects, and combatants national restrictions from the participating countries. from Sudan and Syria. Members of ESTPLA-13 also The commander of the Estonian defence detected four weapons caches and seized large forces said Estonian defence forces personnel were numbers of weapons and large amounts of under no national restrictions as regards operations. ammunition. The legislative development of the other participating countries too allows one's national Estonian Government Wishes to Extend contingent greater freedom of action than so far in Military's Mission in Iraq managing armed crises, Kõuts said. "On the tactical level the Nordic Battle Group Sep 21 - The government wishes to extend the that is being created is without a doubt able to fulfil mission of Estonian defence forces personnel the tasks set out in the EU's concept of battle in Iraq, Kuwait, Qatar and Bahrain until the groups," the vice admiral said. end of next year. He said the Nordic Battle Group cooperation The bill will be forwarded to parliament after project was of great significance for Estonia because the UN Security Council has adopted the respective traditionally neutral countries and NATO member resolution. states were acting together based on NATO The government endorsed 40 as the standards. maximum number of personnel on the Iraq mission. While in Sweden, the Estonian commander The present mandate of Estonian troops in was briefed on the latest developments related to Iraq expires on Dec 31. the Swedish defence forces. He cited three major The basis for the deployment of developments, namely adjustment of the legal base, multinational forces in Iraq, in accordance with which permits Sweden to keep in readiness a international law, was a corresponding request by considerable number of reservists, extending the the Iraqi government. The security situation in Iraq period of training for soldier trainees from seven to has not yet stabilized to such an extent as to make 11 months, and modernizing the military capabilities withdrawal of coalition troops realistic in the near of the volunteer reserve corps, the Hemvärnet. term and immediately at the end of the time frame Estonia is the only country taking part in the set out in the UN Security Council resolution. EU's Nordic Battle Group that is a member of both Estonia currently has a 34-strong light the EU and NATO. infantry platoon, ESTPLA-13, serving in Iraq, along The Nordic battle group must be on standby with four staff officers serving at the headquarters of from 2008. the multinational brigade and two more as part of the NATO training mission in Iraq. Spain to Continue Supporting Baltic Air

Policing Training of New Estonian Contingent for Iraqi Mission Underway Sep 20 - Spanish Defence Minister Jose Antonio Alonso, on a visit to Estonia, said Spain will Sep 26 - Although the parliament has not yet keep supporting the NATO air policing mission discussed extending the mission of Estonian in the Baltic States in the future.

7 The Spanish minister and his Estonian matter whether conducted under NATO or the United counterpart, Jürgen Ligi, spoke about defence Nations, are always multinational. cooperation between the two countries, matters In all there were some 650 personnel from related to the upcoming NATO summit in Riga and Estonia and Britain taking part in the exercise. The international operations, as well as developments in battle group of the exercise is made up of units of European security and defence cooperation. the Estonian Scouts Battalion and the British Alonso said Spain will continue backing the Territorial Army. A US infantry platoon was also part Baltic air policing mission and taking part with its of the battle group during the exercise. fighter jets when possible until the year 2018. The The purpose of the exercise was to drill joint Baltic States want the air policing mission to activity by Estonian and British troops, including in continue in its present form until that date. view of the ongoing joint mission in Afghanistan's Speaking about the future of NATO, the southern Helmand province. Spanish minister emphasized the importance of contributing to the NATO response force and the Estonian Government Okays Purchase of need to find a solution to the issue of financing of Communications System from EADS NATO operations. Spain took over the Baltic air policing Sep 21 - The government authorized the mission from Turkey on Aug. 1, deploying four Ministry of the Interior to sign an agreement Mirage F-1M jets at the Zokniai air base in northern with the European Aeronautic Defence and Lithuania where the mission operates from. Space Company (EADS) on the manufacture, delivery and installation of a radio High-Ranking Spanish Officers Take communications system for Estonia's public safety and security organizations. Interest in Estonia's Conscript Service The cost of the agreement will be Sep 21 - Members of a military delegation that approximately 183 million kroons. Ninety percent of accompanied the Spanish defence minister on that will be paid using Schengen Facility funds and a visit to Estonia inquired about the conscript ten percent will come from the state budget. service in Estonia's armed forces. The agreement with EADS Secure Networks The Spanish minister, Jose Alonso met with Oy is planned to be signed by the end of next week. Estonia's defence forces commander Vice Adm. Tarmo Kõuts, getting an overview of the DOMESTIC NEWS developments regarding the Estonian defence Estonia's Ilves Says Election Result Was forces. Among other things, operations abroad and developing of reserve units were discussed with Not Surprise Estonian officers. (Continued from page 1) The Spanish delegation showed great "When we have people who have an opinion interest in learning about the Estonian conscript of their own, they shouldn't be scoffed at or service system, spokespeople for the Estonian threatened because of it right away. Our society General Staff said. They also hailed the Estonian isn't politicized to such a degree that we couldn't defence forces' having taken the direction toward afford it," said Ilves. rapid development and building up of infrastructure, Ilves also says he considers it his task to which has significantly improved the service make sure Estonia's foreign policy is consistent. conditions of trainee soldiers. Estonia should be clearly among the ones who generate ideas in Europe, he said. Britain's Assistant Chief of Defence Staff "In a number of fields we have seen that Visits Joint Exercise in Estonia after the enlargement of the European Union the influence of the new member states has been Sep 20 - A high-level delegation of British significantly smaller than what we would have liked military officers led by Maj. Gen. Gerald it to be. I believe that Estonia should be one of Grosvenor, the Duke of Westminster, visited those who start taking the floor more in Europe," he the joint British-Estonian exercise Kalev said. Express in Estonia. When asked about relations with neighbours, Grosvenor and the officers accompanying Ilves said that he saw no problems at all in relations him -- commander of the 42nd Brigade Brig. Gen. with Finland, whereas changing the Estonian- Jonathan Powe, and Brig. Gen. John Thompson of Russian relations should happen via Brussels. the Kings and Cheshire Regiment -- looked at an Ilves added that even though he intends to exercise in urban warfare by an infantry platoon, a be active in foreign policy, he cannot be the kind of company attack supported by armoured vehicles, pioneer like the first post-independence president of and weapons used by the Estonian defence forces, Estonia, . spokespeople for the British embassy said. Ilves is expected to take his presidential "The Estonian soldiers taking part in the oath before parliament on Oct 9. His seat in the exercise, who will go to Afghanistan in the future, European Parliament will be taken by Katrin Saks. can learn from the experience of the British soldiers taking part in Kalev Express who have already been Estonia's New President Must Fulfil Trust to Afghanistan. At the same time, British soldiers are learning to work together with Estonian defence - Dailies forces personnel, who are our partners in the Sep 25 - Toomas Hendrik Ilves must fulfil the provincial reconstruction team in Helmand trust put in him when he was elected province," Grosvenor said. president, Estonia's leading dailies say. The major-general underscored that the Ilves is the first Estonian president who upon capacity to take part in multinational exercises was taking office enjoys the support of the people, the a key to the future, since the missions of today, no

8 parliament and the majority of the electoral college, The size of revenues of the supplementary the leading article in Postimees notes. budget for 2006 is 5.519 billion kroons (€353 m). The daily says this indicates a large amount of confidence which also means great responsibility Estonia's State Assets Grow by €8.65bn in and reflects the society's wish for change. At the 2005 same time, the leader says, Ilves has for more than Sep 21 - State assets of Estonia totalled 135.4 two years not been involved in Estonian politics and billion kroons (€8.65 b) last year, an increase therefore support for him can be regarded as credit of 28.4 billion kroons from 2004, the guaranteed only by Ilves' word. consolidated annual accountancy report The president has five years to translate his shows. words into deeds, but it is the first months in the At the end of last year the state had material new job that are crucial as they show the course and capital assets totalling 67.7 billion kroons and create the reputation, says Postimees. biological assets, of which forest makes up the Ilves' victory in the electoral college is a biggest part, worth 28.4 billion kroons. Cash and lesson, Eesti Päevaleht says: in Estonian politics the tradable short-term securities and bonds added up best result is produced if politicians manage to reach to 20.2 billion kroons, and minority holdings were agreement among themselves, and those who play worth 3.2 billion kroons. at several tables at once lose. The state's liabilities stood at the end of 2005 at Estonia is a parliamentary country where the 37 billion kroons, most of it in long-term loans in the president's arms are short and his role is to be amount of around 11 billion kroons. opinion leader, pointing out weak spots in society, The consolidated volume of assets of local and a balancing force if necessary, Eesti Päevaleht governments was 41.9 billion kroons as compared says. with 21.9 billion kroons at the end of 2004. During the run-up to the presidential Liabilities of local governments totalled 8.3 election, Ilves promised to take all these roles billion kroons (6.8 billion kroons at the end of 2004). seriously. But next spring, parliamentary elections Consolidated net assets of local governments lie ahead. "How to be a president above parties amounted to 33.6 billion kroons. amid all this will be the first touchstone for Toomas All told, assets of the public sector reached Hendrik Ilves," the daily observes. 209.9 billion kroons by the end of 2005.

Estonia's President-Elect Quits Party Estonian-Finnish Estlink Cable in Place Sep 25 - Toomas Hendrik Ilves, who was Sep 23 - Laying the submerged part of the elected Estonia's fourth president, quit the Estlink undersea power cable between Estonia Social Democratic Party. and Finland was finished, with the final stretch Ilves ceased to be a member of the party installed just off the Finnish coast. when the board of the SDP accepted his resignation. A special cable laying vessel from Britain "Our paths essentially diverged already at started laying the 75-kilometer submerged part the Estonia (concert hall - the venue of the consisting of two parallel cables in Kakumäe Bay presidential vote)," secretary-general of the party outside the Estonian capital Tallinn on Sept. 11. Randel Lants said. After submersion the cable will be lowered to SDP leader said he's sending about one meter below the surface of the seabed to Ilves to his new job with good wishes. protect it from possible damage, mostly by ship Article 84 of the anchors. requires the President to suspend his membership in Construction work is to be completed in political parties for the duration of his or her term in September and the first tests are due to be run in office. October. The cable is to be operational in late

November or in early December. ECONOMIC NEWS The overall length of the 350-megawatt power link is more than 100 kilometres and the project costs some 1.7 billion kroons (€108.6 m). Currency rates in kroons The primary purpose of the Estlink cable is () to supply electricity generated in the Baltic states to the Nordic power market. The partners in the project are the Baltic energy companies Eesti Energia, Latvenergo and Lietuvos Energija, and Pohjolan Government Sends Supplementary Voima and Helsingin Energia of Finland. Budget to Parliament Sep 26 - The Estonian government approved Estonia's Industrial Producer Price Index the draft of a supplementary budget for the Up 4.4 Pct on Year in August current year and sent the bill to parliament. The government decided in favour of Sep 20 - The Estonian producer price index of earmarking funds in the budget for the Ministry of industrial production increased in August by Economic Affairs and Communications for the 4.4 percent year-on-year and was up by 0.8 repurchase of majority shares in Estonian Railway. percent compared to July, the Statistical Office The need for these funds as well as their size said. will become final as a result of negotiations between Compared with July, the producer price the state and the owner of the majority shares, index was mainly influenced by an increase in prices Baltic Rail Services, and the funds will be set out in in the production of metals and metal products, the budget in the course of parliamentary wood processing, and steam and hot water supply. procedures if necessary.

9 The export price index rose by 0.7 percent Estonian Government Files €2.1 m Claim month-on-month and 4.1 percent in comparison Against Tallink Shipper with August 2005. The import price index inched down 0.1 Sep 22 - The Estonian Ministry of Economic percent from July but showed a year-on-year rise of Affairs and Communications has filed a lawsuit 4.9 percent. against the shipping concern Tallink Grupp and its subsidiary Hansatee Cargo claiming 33.5 Estonia's Trade Gap Widens to €268 m in million kroons (€2.14 m) in unpaid lighthouse and ice-breaking dues; Tallink considers the July claim to be unfounded. Sep 25 - Estonia's trade deficit amounted to 4.2 Tallink has earlier sought help from the legal billion kroons (€268 m) in July 2006, up from chancellor who in his letter to the parliamentary 2.5 billion kroons in July 2005 and four billion Finance Committee expressed the opinion that the kroons in June 2006, the Statistical Office said. lighthouse and ice-breaking dues essentially fall The value of Estonia's foreign trade was 21.4 under the protection of the Constitution and as such, billion kroons, of which exports made up 8.6 billion their enactment by the government is kroons or 40 percent and imports 12.8 billion kroons unconstitutional. or 60 percent. The legal chancellor accordingly asked to If in the previous months the annual growth bring the Merchant Shipping Code into conformity of exports, measured against the same month a with the Constitution. As a result, an amendment to year ago, came to more than 20 percent, then in the Maritime Safety Act was adopted which July 2006 export increased only 15 percent over July introduced ice-breaking and lighthouse dues into 2005 and decreased 17 percent in comparison with this law under the generic term of navigation dues June 2006. from spring 2004. The value of foreign trade increased 22 percent compared with July 2005 and decreased 14 Estonian Post To Launch Bill-Printing percent compared with June 2006. Business in Kazakhstan Imports increased 28 percent compared with July 2005 but decreased 11 percent compared with Sep 25 - A subsidiary of the state-owned June 2006, the Statistical Office said Estonian postal company Eesti Post is about to launch a business in Kazakhstan that will offer Estonia Climbs One Notch on World the service of printing bills and customer notices to local banks, utility companies and Competitiveness Scoreboard pension funds. Sep 26 - Estonia has been ranked 25th on the Under the arrangement used by the Eesti global competitiveness scoreboard for 2006 Post subsidiary banks and other companies would published by the World Economic Forum send bills to the postal company as electronic files. (WEF), one place higher than in the rankings The company would print out the bills, put them into for 2005. envelopes and organize delivery. That's what Eesti "Our indicators point to the rapidly growing Elektronpost has been doing in Estonia for years. importance of higher education and training as The 12-million-kroon (€0.77 m) investment engines of productivity growth. Countries which, like in the printing centre of Elektonpost.kz, which is to the Nordics, are investing heavily in education are open a couple of weeks from now, is expected to likely to see rising levels of income per capita, pay back by the summer of 2007. growing success in reducing poverty and an increasing ability to establish a presence in the Estonian Oil Shale Mining Company to global economy," said Augusto Lopez-Claros, chief Launch Stone Chippings Complex economist and director of the World Economic Forum's Global Competitiveness Network. Sep 20 - Eesti Põlevkivi (Estonian Oil Shale) is launching a stone chippings complex at its Written Procedure in Estonia-EU Sugar Suit Aidu quarry in which it invested 28 million kroons (€1.8 m). Completed The chippings are suitable for road Sep 22 - The European Court of Justice has construction and at the same time the problem of completed written procedure in a lawsuit what to do with mining waste is eased, the company Estonia lodged against the European Union to said. have the size of excessive stocks of sugar fixed The planned capacity of the Aidu complex is by the EU's Executive Commission and the 400,000 tons of commercial chippings yearly. The related penalty halved. facility allows to produce chippings in sizes of 4-16, It could take six months and even longer till 16-32 and 32-40 millimetres. the said case advances to oral proceedings, The complex was built by AS Energoremont. according to the Foreign Ministry, which represents Estonia in the lawsuit. It is not yet known when oral €50 m Chemical Terminal to be Built at proceedings will begin. Sillamäe The government is seeking reduction of the size of the sugar surplus built up before the country Sep 21 - The company Baltic Chemical Terminal joined the bloc, which the Commission fixed at is going to build a 45-50 million euro liquid 91,644 tons, by deducting from it 42,371 tons chemical terminal at the port of Sillamäe in stored up by households. north-eastern Estonia. The fixed size of excessive sugar stocks Agreements on cooperation and on the right carries a penalty of more than 700 million kroons of superficies to build the new terminal were signed (€44.7 m). by members of the board of Sillamäe Sadam (Port of

10 Sillamäe) Vitali Ivanov and Margus Vähi, and year. The airport estimates this year's passenger chairman of Baltic Chemical Terminal's supervisory numbers at 1.6 million. board Aadu Luukas and chief executive Alexander Volokhonsky. SAS To Increase Flights on Tallinn- The planned annual capacity of the facility is Stockholm Route a million tons of ammonia and half a million tons of liquid carbamide fertilizer. Sep 22 - Due to growing demand, the The port is going to build for the terminal a Scandinavian carrier SAS will at the end of 1.2 kilometre wharf with four berths. The depth of October raise to two the number of its daily water next to the wharf will be 10-13 meters. flights on the Tallinn-Stockholm route. The flights are in addition to the Estonian Air Estonia: Fish Catch Grows 13 % on Year service and strengthen the position of Stockholm and the Arlanda airport as a centre of Baltic Sea and in Q2 European travel, SAS said. Sep 22 - Estonian fishermen caught in the The new flight plan will take effect with the second quarter 25,522 tons of fish, an increase switch to the winter timetable on Oct. 29. of 13 percent against the same period of 2005, In addition, SAS is set to double the number the Statistical Office reports. of flights from Stockholm to Düsseldorf, Germany. The fish haul in the first six months of this Increasing the number of flights to Germany and the year totalled 56,176 tons compared to 53,226 tons Baltic states is the first stage of SAS' expansion plan at the same time last year. in Europe. Of the total catch in Q2, 20,674 tons was As the next step, the airline intends to harvested in the Baltic Sea, including 13,222 tons launch new services in Europe and also start flying from the open sea. In the north-western Atlantic from Stockholm to Beijing in spring. Estonian fishermen caught 3,192 tons of raw fish. The catch from inland waters totalled 895 Loans Issued to Companies and tons in the April-June period. Individuals in Estonia Grow by €383 M In

August Estonia's Fish Quotas in North-western Atlantic Left Largely Unchanged Sep 25 - Outstanding loans to companies and individuals in Estonia increased by six billion Sep 26 - A meeting of the Northwest Atlantic kroons (€383 m) during August to reach Fisheries Organization (NAFO) that was held in 153.673 billion kroons at the end of the month, Canada last week decided in favour of leaving it appears from figures released by Eesti Pank. the fish catch quotas for Estonia mostly on the In comparison with the end of August a year existing level, with cuts made only in the quota ago the total grew by 39.845 billion kroons. for lesser halibut. Loans to companies had grown the most in The most important species for open-sea comparison with July -- by 3.047 billion kroons to fishing for Estonia there are shrimp, lesser halibut, 72.101 billion kroons. Loans to individuals perch and skate, with regard to which no big meanwhile increased by 2.9 billion kroons to 68.816 changes were enacted in comparison with this year. billion kroons. The quota for lesser halibut was cut because the reserves of that species have not been restored Estonian Advertising Market Expands by One- at the expected rate. Fifth in H1 The 2007 shrimp quota for Estonia, divided between two fishing areas, will be 1,667 days and Sep 20 - The turnover of the Estonian media 245 tons like this year. The amounts established for advertising market in the first half of this year perch and skate are respectively 1,571 and 576 was 664 million kroons (€42.43 m), a year-on- tons. year increase of 19 percent. The annual meeting also decided to close Q2 turnover including Internet advertising, four sensitive areas for fishing until the end of 2010. at 368 million kroons, represents even stronger growth -- 21 percent, a survey by the market To Begin Extensive research company TNS Emor showed. Advertising volumes grew the most in the Enlargement Internet sector. Compared to the first half of 2005, Sep 20 - The enlargement of the air traffic area the turnover in the first six months of this year was and passenger terminal of the Tallinn airport -- bigger by as much as 74 percent. Online advertising at an estimated cost of more than 1.2 billion meanwhile accounts for only 5 percent of the kroons (€76.68m) -- was scheduled to begin market. this week. The leading media advertisers were Procter The plan is to build a 200-meter gallery & Gamble, EMT, Tele2 Eesti, Hansapank, Rimi Baltic, stretching out of the middle of the terminal building L'Oreal, Coca-Cola, A-Selver and Elion Ettevotted to connect nine new gates. The existing complex will (Elion Enterprises). be extended by 18 meters at both ends. All told, the terminal will be enlarged by Austrian Real Estate Fund Immoeast 13,000 square meters. A plant and animal inspection Investing €31 m in Estonia centre will also be added to the complex. In addition, separate waiting lounges will be Sep 19 - Austrian real estate fund Immoeast is built for European Union and Schengen area investing in cooperation with the real estate passengers and people flying outside the EU. developer Paul Oberschneider around 31 The terminal, which is to be completed in million euros in an Estonian housing 2008, will be able to serve 2.3 million passengers a development project.

11 The Austrian fund and Oberschneider are developing a housing project in Rannamõisa Road in Tallinn's Haabersti area where 805 apartments are planned to be built. The company is waiting for a building permit and thereafter the ground will be broken.

Number of Mobile Calls in Estonia Up by Fifth in Q2 Sep 20 - Estonians made 384.7 million calls in mobile communications networks in the second quarter of this year, which is 21 percent more than during the same period last year, the Statistical Office said. The number of call minutes meanwhile increased from 316.3 million to 431.9 million. Fixed-line calls numbered 73.9 million, a drop of 12 percent from the second quarter of 2005, and call minutes totalled 229.7 million compared with 243.7 million a year ago.

Elion Promises To Incorporate Several New Functions into Its Digital TV Service Sep 20 - The telecommunications operator Elion of the Eesti Telekom group, pledges to incorporate a number of new functions into its service. Elion promised to start within this year providing a video on-demand service which enables clients to order straight from the screen both Estonian and foreign movies and programs. Next year the company plans to bring to the market TV games and communication services similar to MSN and other services offered through the Internet at present.

Estonia: Baltika to Open New Mosaic Stores in Ukraine, Russia, Latvia Sep 26 - The Estonian garment manufacturing and retail group Baltika is planning to open new stores of its Mosaic brand in the near future in the Latvian capital Riga as well as in Kiev and Donetsk in Ukraine, and Krasnodar and Kazan in Russia. Mosaic as of now has 39 stores in Estonia, Latvia, Lithuania, Ukraine, Poland and Russia. Baltika Grupp operates the Monton, Mosaic and Baltman retail chains in six countries.

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