Estonian Review E E S T I R I N G V A A D E VOLUME 16 NO 45 NOV 15 - 22, 2006

FOREIGN NEWS DEFENCE NEWS Formin: EU's Enlargement Strategy Must Be British PM Meets with Estonian Troops in Integral Afghanistan Nov 15 - Meeting in the Estonian Nov 20 - Britain's Prime Minister Tony Blair who Foreign Minister Urmas Paet and his Dutch visited Afghanistan met with Estonian soldiers counterpart Bernard Bot stated that the European serving in that country. Union's enlargement strategy must be integral and Blair's intention was to meet with British consistent. troops stationed in Camp Bastion in the southern In accordance with the EU founding treaties, all province of Helmand. European countries have the possibility to apply for As an Estonian mine clearance team, the 15- membership; the membership criteria are known and are strong EODT-10 under the command of Capt. Üllar mandatory, Paet said. On the other hand, also the EU Lumiste, is based at the same camp they too attended must fulfil the promises made to the countries which the meeting. The of the motorized have made known their wish to accede to the EU, in line infantry company ESTCOY-3, Maj. with their progress in carrying out reforms, he said. Leo Käige, was also present. In the words of the Dutch minister a situation On Nov. 12 more than 100 Estonian where the talks come to a halt has to be avoided. Bot servicemen, including besides the 81-strong infantry said the differences that emerge during the talks must company and the explosive ordnance disposal team a be solved, while the countries wishing to accede to the 10-member logistics support unit and officers and EU must meet the membership criteria. non-coms serving in headquarters, flew to Speaking about the EU neighbourhood policy, Afghanistan. Paet said that the target countries of this policy need The Estonian units serve in a British PRT that first and foremost economic growth and modernization, is part of an international brigade under Dutch but certainly also encouragement and support from the command and operates in six southern provinces of union. Afghanistan. "Their relations with the EU must depend on the The servicemen are at present preparing for homework done by the country and its capabilities, not operations. so much on location or historic belonging," Paet said. Estonian have been serving in the "Here our development cooperation has a big NATO-led peace enforcement operation in Afghanistan role to play, and has geared its projects in the since March 2003. target countries of the neighbourhood policy toward Last December the parliament extended ensuring democracy, observance of human rights and troops' participation in the overseas mission by two economic and social stability, as well as reducing years, with up to 150 soldiers to be stationed in poverty, first and foremost in Georgia, Moldova and Afghanistan at a time. Ukraine." Paet and Bot emphasized that the EU must talk with Russia in one voice. In the words of the ministers it is important to achieve unanimity on the mandate of the negotiations on the new partnership and cooperation agreement before the EU-Russia summit on Nov. 24. "That would be an important signal about the unity of the Russia-policy of the ," Paet said. The ministers also talked about EU-Russia cooperation in energy. Other topics dealt with were matters related to the forthcoming NATO summit in Riga, including the situation in Afghanistan and EU-NATO cooperation in that region. The EU must show that it is ready and capable to act rapidly and contribute to the development of Afghanistan, the ministers said. They also stressed the Estonian mine clearance team, the 15-strong importance of cooperation between the EU, NATO and EODT-10 under the command of Capt. Üllar the United Nations on that matter. Lumiste with the Prime Minister of Great Britain Tony Blair

FOREIGN NEWS , Callixte d'Offay, signed a joint communiqué on the establishment of diplomatic ties. Formin: Estonia Interested in Closer During a conversation that followed, economic Cooperation with Holland cooperation between the EU and Seychelles was talked Nov 16 - Estonia is interested in intensifying its about, with emphasis on fisheries. The institution of cooperation with the Netherlands, Foreign honorary consulate would offer several possibilities to Minister Urmas Paet said during the inauguration intensify contacts between the two countries, including in of the new building of the Estonian embassy in the fields of tourism, economy and culture, the parties The Hague. found. He said that embassy means not only political The Estonian envoy thanked the ambassador of and diplomatic relations but its task also is to connect the Republic of Seychelles for backing Estonia's bid to the people of the two countries. become a member of the UNESCO Intergovernmental "I hope very much that both our economic and Committee for the Safeguarding of the Intangible cultural relations as well as relations between the Cultural Heritage when the vote was taken in Paris in people will become closer still and we'll be able to state July. already after a couple of years, for instance, that economic and trade relations as well as trips by tourists Education in Vernacular Biggest Concern of have increased significantly," Paet said. Finno-Ugric Peoples -- Estonian PACE Member The Estonian ambassador to Holland, Gita Kalmet, said interest toward Estonia on the part of Nov 17 - A permanent committee of the residents of the Netherlands has been constantly Parliamentary Assembly of the Council of Europe growing. (PACE) unanimously endorsed a report by former Cooperation projects between Estonia and the member of the Estonian delegation Katrin Saks on Netherlands embrace cooperation in agriculture, the situation of Finno-Ugric peoples, underlining defence and justice, as well as environment. The problems of education in the vernacular. Netherlands has been one of the main countries "For Finno-Ugric peoples the biggest problem is financing bilateral projects and used to be one of the restrictions to or lack of education in the vernacular," largest providers of assistance before Estonia's said Saks, a Social-Democrat member of the European accession to the EU in 2004, having supported the Parliament. reconstruction of the Luhamaa border checkpoint on "Only a few of them have the opportunity of the Estonian-Russian border and the Baltic Defence studying in their native tongue until the fourth form. College, to name a few, also carrying out projects to Most don't even have that opportunity." counsel private farms. Saks said that the situation was particularly In terms of economic relations, the Netherlands difficult because Russian authorities did not admit ranked eighth among Estonia's trade partners last year problems, although PACE drew attention to them already and was fourth by investments. Trade between the two in its report completed in 1998. countries is constantly growing. The report, compiled in the framework of the Diplomatic relations between the two countries PACE cultural committee, was initiated by members of were re-established in September 1991. Estonia opened the Estonian delegation and the committee picked Saks its embassy in The Hague in 1997. for rapporteur. Together with the report PACE approved a number of recommendations to improve the situation of Finno-Ugric peoples, mainly pertaining to the activity of Russian federal and local authorities. One of the recommendations is that , Finland and Estonia should invest more in the name of their kindred peoples' future.

Estonian Ambassador Presents Credentials in Georgia Nov 21 - Estonian Ambassador to Georgia Jaan Hein presented his credentials to President Mikhail Saakashvili. Hein, who represents Estonia also in Ukraine and Moldova, resides in Kiev. The conversation following the ceremony centred on bilateral relations and European Union-related subjects. Estonian Foreign Minister Urmas Paet and his According to Saakashvili, Georgia appreciates Dutch counterpart Bernard Bot in the Hague, and is grateful for being chosen a priority partner of November 15, 2006 development cooperation by Estonia.

Estonia, Seychelles Establish Diplomatic Ties "It is important to Georgia to learn from the Nov 15 - Estonia established diplomatic ties with Estonian reform experience as witnessed by the years- the Republic of Seychelles. long work of Estonian experts in Georgia," the president Estonian Ambassador to France Margus Rava said. and the ambassador of the Republic of Seychelles to He voiced the hope projects of development cooperation will continue successfully and also said he Speaking about a possible meeting with Russian was glad that his country was being advised on building President Vladimir Putin, Ilves said that as a polite up the state and integrating into Europe by Estonia's person he will accept an invitation when one is made. former Prime Minister . He recalled that an invitation from the former The ambassador noted that the ties and Estonian president, Arnold Rüütel, for Putin to come to cooperation between the two countries have expanded Estonia remains in force. in recent years. The parties were satisfied with the "If our meeting takes place some time, as I think rapid and sustainable development of economic it will, Estonia and Russia always have a lot more than relations. weather to talk about," he said. Estonian investments are essential for the "Take the new neighbours of the EU and their development of the Georgian economy, Saakashvili problems, for instance, take the world in a broader said, noting with pleasure that Estonian entrepreneurs sense, take energy-related issues, take developments in are doing business across the whole country and not Russia or Estonian-Russian relations more narrowly -- restricting their investments to the capital city. In the starting from the border treaties to designing and president's words, Georgia has unquestionably set construction of the new Narva road bridge," said the course for integration into Europe and -Atlantic Estonian president. structures. Ilves made it clear that the past would not be the Hein, 45, graduated from the philosophy main topic at that meeting. department of the Leningrad State University in 1984, continued postgraduate studies at the same university Estonian-Russian Pension Agreement in 1987-90 and perfected his thesis at the Mainz, Protocol to Help People -based Institute of European History in 1990- 91. Nov 17 - People moving from Estonia to Russia or He joined the foreign service in 1992, working vice versa will benefit by the entry into force of a as director of the Central and East European desk of protocol on amendments to the Estonian-Russian the policy department till 1994, as counsellor for pension insurance cooperation agreement that was political and defence matters at the Estonian embassy ratified three years ago by Estonia and now by in Moscow in 1994-97, and as charge d'affaires in Russia. Prague in 2000-03. The Social Affairs Ministry said that on the basis Until his appointment as ambassador to of the agreement Estonia would take into consideration Ukraine, Hein was director of the East European and the person's work record in the territory of the former Central Asian desk of the Foreign Ministry's policy until 1991 and in the territory of the department. Russian Federation since 1991. The agreement will benefit people who have Cambodian Ambassador Presents moved from Russia to Estonia but whose pension has been calculated on the basis of Russian laws but are not Credentials in Estonia entitled to a pension under Estonian law even if their Nov 16 - Cambodian Ambassador Chum Sounry length of service in Russia is taken into consideration. presented his credentials to Estonian President Similarly, people moving from Estonia to Russia, in . whose pension has been calculated on the basis of The president said it was Estonia's wish to learn Estonian law, but do not get the right to a pension under to better know Cambodia and develop bilateral relations Russian law even if their length of service in Estonia is in a friendly manner and respecting each other's taken into consideration. interests. Ilves said he believes tourism to be a field of "As a result, entry into force of the cooperation cooperation with especially good outlooks. agreement would solve the pension problems of Chum Sounry, the first ever ambassador of residing in Russia who have a length of service Cambodia to Estonia, said Cambodia's integration with both in Estonia and Russia," the ministry said. the Association of Southeast Asian Nations (ASEAN), The protocol was signed in November 2002. The Estonia's accession to the European Union and the Estonian parliament ratified it in 2003 and the Russian admission of both countries to the Asia Europe Meeting State Duma on this November 15. (ASEM) has created new opportunities for developing The protocol will enter into force only as of the relations both bilaterally as well as in the framework of date of the exchange of the ratification letters. these associations. The Cambodian ambassador resides in Moscow. DEFENCE NEWS

Estonia's ESTPLA-13 Detain Participants in President Invites Russian Church Leader to Sectarian Clash in Visit Estonia Nov 16 - Members of the Estonian ESTPLA-13 unit Nov 15 - President Toomas Hendrik Ilves has serving in Iraq in the course of a patrol operation invited the leader of the Russian Orthodox detained five persons who had participated in a Church, Patriarch Alexy II, to visit Estonia. sectarian conflict. The last time the Russian church leader visited The clash that took place near the town of Sab- his native country was in 2003. al-Boor was detected as members of the patrol heard Ilves told the Russian newspaper Izvestiya in an gunshots. interview that Alexy was one of the first foreign The Estonian patrol that rushed to the scene dignitaries to congratulate him after his victory in found a group of Sunni combatants made up of a couple presidential elections in September. of tens of individuals shooting at local Shiites. When the Alexy II, who was born as Alexei Ridiger to Estonians interfered, the combatants fled. In the course Russian parents in Tallinn in 1929, made an official visit of searches at nearby houses later members of the to Estonia in 2003 and has later expressed the wish to Estonian platoon detained five participants in the attack. visit his native country again.

3 In addition, the patrol of ESTPLA seized The armoured vehicles would be used to block streets in weapons and ammunition used by the combatants. the event of possible. "We were in the right place at the right time Aside from NATO, individual NATO member and managed to prevent a sectarian bloodshed," states will be involved in ensuring security during the the commander of the Estonian platoon, Lt. Meelis NATO summit. The request for assistance to Estonia was Jõemaa, said. sent by Latvian Prime Minister Aigars Kalvitis in "Earlier we had seen groups of four or five men September. in the same area, a group of 20 indicates more organized action," he said. DOMESTIC NEWS The acting commander of the Estonian defence Estonian President Calls on Thinking About forces, Brig. Gen. Alar Laneman, voiced his gratitude to members of ESTPLA-13 for the successful operation Social Innovation against overwhelming enemy force. Nov 17 - Speaking at a conference at the Estonian Since taking up mission duties in June, University of Life Sciences, Estonian President members of the Estonian platoon have detained 53 Toomas Hendrik Ilves called on his listeners to persons suspected of terrorism, discovered six weapons think about social innovation while speaking about caches, three self-made explosive devices and more the development of Estonia. than one hundred guns. "The whole world, including Estonia, is speaking The 34-strong platoon is serving to the north of about innovation. About clever and different solutions," Baghdad as part of a battalion of the battle group of the the head of state said. "Mainly some kind of technical US Army 4th Infantry Division's 1st Brigade. solutions are born in mind in this context. Perhaps the Estonian military personnel have been taking Estonian contribution could be in social innovation." part in the Iraqi mission since June 2003. Ilves said that, for example, an optimal settlement model could be worked out for Estonia and Estonian President to Move Laaneots for carried out supported by different state policies. New Chief "To do it, we could deal with different technical solutions saving the environment, energy and people, Nov 16 - Estonian President Toomas Hendrik Ilves and later with their production and use," the president announced that he submits to the parliament the added. appointment of Maj. Gen. as the "The optimal settlement model means, after all, next commander of the . that everything else will follow where the people are -- The president made the announcement after a schools, friends, folk dancing and other things among meeting of the National Defence Council. which a person feels at home." Laaneots, 58, is currently head of the National Ilves pointed out that the present optimum Defence College. meant the concentration of inhabitants in two or three settlements or regions. Estonian Marks 88th Anniversary "The result will be extremely uneven and sparse Nov 21 - The marked its 88th population of the country, which will reduce any effect of anniversary. economy to zero at least at state level and the The anniversary events kicked off with a line-up consequences do not permit us speak about optimization of units at the naval base in the Miinisadam port of at all," he said. Tallinn attended by guests. Saying that forests cover half the territory of The acting chief of the Navy, Lt. Comdr. Ahti Estonia, Ilves added that the resource could be used Piirimägi, handed to the crew of the minehunter Sulev both in construction and furniture making and it certainly the naval badges of merit and NATO service medals. had a high potential as a source of energy, because wood The Sulev returned from service in the NATO chips and sawdust could produce both heat and mine countermeasures squadron on Nov. 1. electricity. In the framework of the anniversary He added that it offered an alternative to many celebrations, the cornerstone to the sixth quay at the households and local governments, who were becoming port was laid. more and more concerned by the constant and The anniversary of the Navy is marked on the apparently inevitable rise in the price of oil-based energy day a naval department was formed at the staff carriers and gas. of the defence forces in 1918. "It is the scientists of the Estonian University of The Navy of Estonia was re-established in 1993 Life Sciences that could calculate the potential costs of by the formation of a naval department at the general the production and use of alternative energy carriers," staff of the defence forces. The force has two units, a the president said. "I also believe good cooperation naval base and a mine countermeasures division under partners concerning the technological solutions can be whose command are also naval ships. found from the Technical University and elsewhere." Ilves added that arable land made up half of the Estonian Parlt Backs Sending Soldiers to rest, unforested territory and adding to this natural meadows and coastal hayfields there was about one hectare of land per one resident of Estonia, and Nov 15 - The Estonian parliament voted in favour something could be undertaken with it. of a bill which allows to send six Pasi armoured "We take the first place for that indicator in the vehicles and up to 40 Estonian defence forces European Union," he said. "The question is, what to do personnel to help ensure security during the with it." NATO summit in Riga later this month. The president stated that he was not a specialist The decision gives the unit of the Estonian of the area and could not give any concrete defence forces a mandate to act in Latvia from Nov. 20 recommendations. to Dec. 4.

4 "The specialists should be studying here at the They are Marianne Mikko, Katrin Saks and Andres University of Life Sciences," the head of state said. Tarand from the Social Democratic Party and Siiri Oviir "They know what the fertility of Estonian soils is, from the Centre Party. whether plants or animals could be grown on it and Reformist Toomas Savi and Tunne Kelam from what could the Estonians do with the land belonging to the Pro Patria and Res Publica Union are not going to vie them." for parliament seats in the March 2007 elections. The president expressed the hope that students The law bars a member of the European and scientists at the University of Life Sciences knew Parliament from simultaneously sitting in the Estonian the possible future scenarios of the European common parliament. agricultural policy and would help Estonian politicians The parliamentary elections are set for March 4. shape our country's positions. "Why couldn't Estonia be the country offering a Construction of Orthodox Church to Begin in solution for reforming the common agricultural policy," Estonian Capital he asked. "The assertion that a small country cannot achieve anything does no hold here. So quite a few Nov 21 - The construction of a new Orthodox church initiatives have come both from Finland and is set to begin in Tallinn's Lasnamäe district, the and more than 450 Europeans act in borough government reports. accordance with them today." A divine service to mark the beginning of the construction of the Church of the Icon of the Mother of Estonian President: Independence Day God "Quick to Hearken" was conducted by the head of the Estonian Orthodox Church of the Moscow Reception Could Be in Different Towns Patriarchate, Metropolitan Cornelius. Nov 17 - Estonian President Toomas Hendrik Ilves The area under the building is 1,058 square has suggested the idea of holding Independence meters. The cornerstone of the church will be laid after Day receptions in different Estonian towns. completion of earthwork. Ilves said that by changing the venue of the receptions it was possible to show at state level that Free Russian-Language Weekly to Start Estonia was not limited to Tallinn alone. Appearing in Ida-Virumaa Region "I will here suggest this opportunity: what if as of next year the Republic of Estonia Independence Day Nov 16 - The publisher of the Russian-language reception, the same reception at which the president weekly MK-Estonia, Telereklaami OÜ, will bring out makes a speech and that is showed on (public) ETV in the north-eastern cities of Kohtla-Järve and television, will be held also elsewhere but in Tallinn," Jõhvi the first issue of the free weekly Panorama. Ilves said speaking at an Estonian University of Life All the 30,000 copies of the newspaper will be Sciences conference. distributed to mailboxes of residents of Kohtla-Järve and The president expressed the hope that already Jõhvi, the company said. next year that function would take place in , the The project was prompted by the success of the city of learning. free weekly Gorod in Narva which Telereklaami OÜ launched in January, board member Margus Merima said. Estonia Sets Up Courses for 10,000 People Telereklaami OÜ represents in Estonia Russian television channels Pervyi Baltiisky Kanal and Ren TV- of Undefined Citizenship Baltija. Nov 21 - The Non-Estonians' Integration Foundation will until August 2007 provide free ECONOMIC NEWS courses to up to 10,000 residents of undefined citizenship to prepare them for a Constitution and citizenship exam they need to pass for Currency rates in kroons naturalization. () The courses started already in August and will last till next August. Estonian Parlt Decides Establishment of At this point 3,000 people have signed up for Development Fund the course and 1,000, or 70 groups, have already Nov 15 - After years of political differences, the passed it, Ülle Kraft from the foundation said. Estonian parliament finally adopted almost Of those who took the course 83 percent unanimously a decision to set up the Development successfully passed the citizenship exam. Fund to support knowledge-intensive enterprise. The government hopes the courses will attract The objective of the fund is to stimulate and 10,000 participants over the year. The integration support changes in the Estonian economy which help foundation mailed direct to persons of undefined modernize the economy, ensure growth of export and citizenship 118,000 brochures presenting the create new jobs requiring high qualifications. possibility. To finance the fund, an investment capital fund Data by the Citizenship and Migration Board will be formed for which a number of state-owned shares show that at the beginning of the year there were in Eesti Telekom corresponding to a holding of at least 3 136,000 persons of undefined citizenship living in percent will be transferred to the fund upon its Estonia on the basis of a residence permit. In 2002 establishment. The current value of the shares is around such persons numbered 172,325. 500 million kroons (EUR 31.95 mln).

The fund is going to invest not only in existing firms Four Estonian MEPs to Run in Spring Parlt but also in those about to be launched. Election Specialists involved in the preparation of the bill Nov 20 - Four of the six lawmakers elected to the on the establishment of the Development Fund have European Parliament from Estonia intend to run predicted it will help create at least 50 successful firms in the general election next spring. employing hundreds of people within five years.

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The companies would create much value added European Space Agency Examines Estonia's and offer high-quality jobs which would reduce the Potential outflow of competent workforce in search of jobs abroad. Most companies would probably be oriented Nov 16 - A delegation of the European Space towards foreign markets, helping increase Estonian Agency came to Estonia to get an overview of the exports. local space industry potential and talk about the The Development Fund is going to operate as a conditions of a planned framework cooperation legal person in public law. agreement. During the two-day visit the ESA delegation met Gives High Marks to with Minister of Economy and Communications Edgar Savisaar, visited the Tallinn University of Technology and Estonia's Draft Rural Development Plan inspected a number of companies that manufacture Nov 15 - The European Commission has given high communications equipment. marks to Estonia's rural development plan for ESA is an intergovernmental organization whose 2007-13 whose preparation has reached the final aim is to promote studies of outer space, develop new stage. technologies and raise the competitiveness of European Members of the Agricultural and Rural industry. Development Council were at a joint meeting with the Estonia, which intends to join the organization, steering committee of the new rural development plan needs to conclude with it a framework agreement given an overview of the comments the EU executive outlining the forms of further cooperation. made on the draft plan at an informal meeting last Signing of the framework agreement is followed week. by cooperating member status. The status of cooperating "The European Commission's general opinion of state enables a country to participate in the Program for the draft was positive -- Estonia has made more European Cooperating States which a step toward full progress in drawing up the development plan than membership in ESA. many other member states of the European Union," the Agriculture Ministry's deputy secretary general for rural Estonia-Finland Undersea Cable Set to Be life and fisheries policy Toomas Kevvai said. Finished on Schedule Members of the council were familiarized with the initial seven-year budgets of measures to be taken Nov 21 - The problems that were encountered in the framework of the rural development plan. All during tests of the submarine power cable to told, about 14.3 billion kroons (EUR 0.91 b) is to be connect the Estonian and Finnish electricity spent in the next seven years to support life in the networks have been solved and the power link is countryside. expected to be completed on schedule. According to the plan, 5.7 billion kroons is The builder had earlier had trouble when testing earmarked to raise the competitiveness of the farming converter equipment on the Finnish side and it was and forestry sector. feared this could delay the start-up of the cable. Environmental and local preservation is to get Starting from mid-October, ABB, the builder of 5.5 billion kroons, quality of country life and the Estlink submarine cable, has been carrying out tests diversification of rural economy would be supported at the converter stations in Espoo (Finland) and Harku with three billion kroons, and the EU's rural (Estonia) to prepare the start-up of the cable at the end development initiative LEADER is to have financing in of November. the sum of 1.43 billion kroons. "ABB has confirmed that it has found a solution The development plan will soon be sent to to the problem and that the cable will become ministries for harmonization and after its approval by operational as planned. Inauguration of the cable will the government it will be officially submitted to the take place on Dec. 4 at the converter stations in Estonia European Commission. and Finland," the press release by Eesti Energia said. The builder has said that despite the delay, the October Industrial Price Index Climbs 5.3 work will be finished as planned by Nov. 29. Tests were resumed this week following a Pct on Year temporary halt at the converter station on the Finnish Nov 20 - The producer price index of industrial side of the power link. production in October 2006 was 0.6 percent Eesti Energia warned that voltage dips may occur higher than in September and 5.3 percent higher on both sides during the tests. than in October 2005, Estonia's Statistical Office said. Estonian Economy Minister, BRS Sign Railway Compared with September, the change in the Shares Repurchase Agreements producer price index was largely the result of an increase in prices in the manufacture of wood and wood Nov 17 - Minister of Economic Affairs and products. Communications Edgar Savisaar and Baltic Rail The export price index moved up 0.4 percent Services signed agreements on the termination of compared with September and 4.5 percent compared the Eesti Raudtee (Estonian Railway) privatization with October 2005. contract and repurchase of majority shares in the The import price index meanwhile decreased company. 0.2 percent from September but was 3.1 percent higher The government approved the agreements on the than in October a year ago. repurchase of privately-held 66 percent of railway shares

6 at an extraordinary meeting on Nov. 10. Estonian BLRT Group Mediates Russian Allocation of funds in the sum of 2.35 billion Rubber to Asia, America kroons (EUR 150.2 mln) for the purchase requires approval in parliament. Nov 15 - The Estonian industrial group BLRT has The state is going to finance the deal through started supplying to Asia and America raw rubber either this year's supplementary budget or the 2007 from Russia. budget, Savisaar said. BLRT and the chemicals businessman Oleg Drigin BRS privatized a majority stake in Eesti set in summer jointly up a company called Arefonte Raudtee in 2001 for one billion kroons. The state kept Chemicals Grupp to mediate synthetic rubber, BLRT 34 percent of the shares. board member Mark Berman said. Arefonte sells on the world market synthetic Econmin: Repurchase of Railway Will Pay off rubber produced by the Russian petrochemical industry which can be used for instance for the manufacture of in 10-15 Years - tires. Nov 17 - The repurchase of railway shares for 2.35 Packed in bags or boxes, the rubber is exported billion kroons (EUR 150.2 mln) will pay off in 10- through either the Russian port of St. Petersburg or 15 years, says the minister of economy. Estonia's Muuga. The firm aims to reach a monthly "I believe today's step will justify itself -- the export volume of 2,000 tons in the near future. acquisition of railway is going to pay off in 10-15 years," Edgar Savisaar said. Estonian Fashion Group PTA Acquires Polish Guido Sammelselg, one of the shareholders in Lingerie Retail Chain Baltic Rail Services that represents private interest in Eesti Raudtee, voiced the opinion the purchase will pay Nov 16 - The Estonian Fashion Group PTA Grupp off even sooner with proper management. "By our Has Through Its Subsidiary Silvano Fashion Group calculations, this period is about half of what the Acquired The Polish Lingerie Retail Chain Operator economy minister suggested," he added. Splendo Polska. Splendo operates at the moment seven lingerie Estonian Cofounder of Skype Invests in shops in -- three in Warsaw and one in Krakow, Poznan, Gdansk and Bydgoszcz each. The Splendo Online Fare Systems outlets sell quality lingerie from various suppliers. Nov 15 - Poohtech, a company in which the In connection with the acquisition the Estonian cofounder of Skype Toivo Annus has a management of Silvano plans to reorient Splendo shops stake, has set sights on winning online fare to the sale of the output of Silvano's other subsidiaries, systems development tenders in several the Belarusian Milavitsa and Latvian Lauma Lingerie, and European cities. in the longer term they may be transferred under the Estonia is the pilot market for Poohtech and in trademark of the lingerie retail chain Oblicije. the capital Tallinn, for instance, ticket inspectors use Earlier this autumn PTA Grupp acquired the devices developed by the company to check ID cards leading Latvian lingerie maker Lauma Lingerie, that are used as the fare medium. "Our aim is to Belarusian lingerie maker Milavitsa and the Linret conquer the world," Poohtech manager Herty Tammo company developing a chain of lingerie stores in Russia. said. According to Tammo, online fare systems Estonian Ports' Freight Turnover Up 9 Pct on benefit both passengers and bus companies. Year in October Passengers can purchase tickets through the Internet. If Tallinn's fare system is based on the ID card then Nov 17 - Estonian ports handled in October 4.15 Poohtech's solution basically allows to use any contact- million tons of goods, 14.3 percent more than a free card as a ticket. month earlier, data by the Statistical Office show. A bus company can sell tickets anywhere in an Compared to October 2005, freight turnover was online system while having a full overview of the up by 9.2 percent. number and movement of passengers. The ports loaded last month 3.53 million tons of "You don't find an exact match of Tallinn's ID goods compared to 3.3 million tons in October 2005 and card-based fare system anywhere in the world but 2.98 million tons in September 2006. analogous services do exist," Tammo said. The Cargoes unloaded totalled 626,100 tons against company has already several negotiations in progress 482,800 tons a year earlier and 649,500 tons in the over introducing a fare system resembling Tallinn's in previous month. Belgian public transport, for instance. In January-October ports loaded 35.9 million tons In the term of four or five years the company of cargoes compared to 34.6 million tons during the aims to win fare system tenders of several major same period last year. European cities and supply tens of thousands devices, Cargoes unloaded in the 10 months added up to Tammo said. 5.3 million tons against 3.78 million tons in January- Commenting on his investment, Annus said it's October 2005. a promising product that could go far. He was approached with an interesting idea and decided to put Estonian Banks' Assets Increase in October money in it, he explained. Nov 15 - Assets of Estonian commercial banks grew After the sale of Skype to eBay in 2005, Annus in October by 5.3 billion kroons, reaching 220.84 and his colleagues had a lot of free funds for various billion kroons (EUR 14.11 b) by the end of the investments. Since then they have acquired holdings in month, the reports. a number of promising narrow niche technology The banks' assets have increased by 47 billion companies. kroons over the past 12 months.

7 Of banks' consolidated assets at the end of last Elion, SEB Eesti Uhispank, national power utility Eesti month, claims to clients made up 165.5 billion, claims Energia (Estonian Energy) and Skype. to credit institutions 19.6 billion and claims to the The top ten included also the ministries of foreign central bank affairs and finance, builder Merko and food group Kalev. 13.3 billion kroons. The survey carried out in October and November Commercial banks earned in January-October a focused on employees' expectations of a potential new net profit of 2.92 billion kroons. employer. In all, 1,560 leaders, specialists and frontline personnel who since summer had shown interest in a Estonian Banks' Capital Adequacy new job were interviewed. As a part of the survey, the Unchanged in October respondents were asked to name organizations in which they would like to work. Nov 17 - The average capital adequacy ratio of The study conducted with the help of the Estonian commercial banks was at the end of research company TNS Emor took place simultaneously October 14.1 percent or on the same level as a in Latvia and . Those countries' most attractive month earlier, the Bank of Estonia reports. employers were respectively Latvijas Mobilais Telefons The banks' gross equity totalled 25.37 billion and SEB Vilniaus Bankas. kroons (EUR 1.62 b), up by 712 million kroons during According to Endrik Randoja from the month. Net equity increased by 714 million kroons Fastleader.com, employees prefer organizations which to 24.12 billion kroons. offer a sense of security and career opportunities. "This Risk-weighted assets were 156.44 billion kroons is corroborated by the fact that if a respondent could not and risk-weighted off-balance sheet liabilities, 11.55 name a concrete organization the public sector was most billion kroons. Risk-weighted assets increased by 5.17 frequently named as an attractive field. The public sector billion kroons during October. as employer has the image of security and career Commercial banks' total assets grew from opportunities," Randoja said. 215.59 billion kroons to 220.84 billion kroons. CULTURAL NEWS Estonian Employees Confident of Keeping Culture Festival of EU's Finno-Ugric Nations Current Job - Survey Opens in India Nov 16 - More than 80 percent of Estonian nationals have confidence in retaining their current job in coming months, it appears from a Nov 20 - A festival of the Finnish, Estonian and survey TSN Emor pollsters carried out for Hungarian cultures, "Finno-Ugric Countries in the Eurobarometer. EU," presenting the three countries' present-day The survey conducted in all member states of graphic art, literature and film began in New Delhi. the European Union showed that on the average 85 The display of graphic art running till Dec. 22 percent of EU citizens are confident of keeping their features works by Estonian artists Kadri Alesmaa, Marko jobs in the short term. Compared with the 2004 survey, Mäetamm, Tiina Tammetalu and Jaak Visnap. confidence has increased, TSN Emor observed. Books by Lennart Meri, Tõnu Õnnepalu, Jaan Employees are more confident in countries with Kross and Andrus Kivirähk were discussed and poetry by low levels of unemployment, such as , Doris Kareva read at a literary evening. and Luxembourg, where more than 90 percent of The program of a movie festival includes from people are sure they are not going to lose their jobs. In Estonia a new feature by Elmo Nüganen, "Meeletu" Finland, Latvia and Estonia the corresponding indicator ("Mindless"). The Finnish and the Hungarian cinema are was above 80 percent. represented by Aki Kaurismäki and Krisztina Deak, Confidence is higher among managers and respectively. more educated people. In the longer term, every other citizen of the EU and Baltic states is confident of being in work also in two years' time. The highest confidence levels were recorded in the Netherlands, and United ESTONIAN REVIEW Kingdom. (ISSN 1023-1951) Is issued by the Nationals of Ireland, Nordic countries and the Press and Information Department, Ministry of Foreign Affairs Baltic states of Estonia and Latvia are the most ISLANDI VÄLJAK 1, TALLINN, ESTONIA 15049 optimistic, believing they can find new employment TEL +372 637 7600 within six months in the event of job loss. FAX +372 637 7617 In looking for new employment, people in Estonian Review is also available over the Internet at general prefer the same locality they have worked http://www.vm.ee before. To subscribe, please contact: [email protected] Some 14 percent of EU citizens on the average are ready to start their own business compared to only 6 percent of Estonian nationals.

Hansapank Estonia's Most Attractive Employer - Study Nov 15 - The most attractive employer in Estonia is Hansapank, it appears from a study by the management publication Fastleader.com. Hansapank was followed by the mobile communications operator EMT, fixed-line operator

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