Estonian Review E E S T I R I N G V A A D E VOLUME 17 NO 6 FEB 7- 13, 2007

QUOTATION OF THE WEEK CULTURAL NEWS Estonian Chamber Choir Received Grammy Award “Moscow views democracy close to its Feb 12 - The 49th annual Grammy award borders as a security risk and autocracy as for best choral performance went to Da a source of stability” Pacem, a collection of works by the renowned Estonian composer Arvo Pärt , recorded by the Estonian Philharmonic President of Chamber Choir. 12 February, Berlin The chief conductor and artistic director of the choir since 2001 is Paul Hillier from Britain. In the category of best engineered FOREIGN NEWS classical album the award went to Michael President Ilves Held a Speech at Security Bishop for Enigma Variations by Edward Conference in Elgar and The Young Person's Guide To The Orchestra, Four Sea Interludes by Benjamin Feb 10 – Could NATO, instead of the , be Britten, both performed by the Cincinnati the carrot for countries that wish to reform, Toomas Symphony Orchestra under the baton of the Hendrik Ilves asked at the prestigious Wehrkunde Estonian-born Paavo Järvi. Security Conference in Munich. The award ceremony was held at the Ilves recalled that the opportunity to join the European Staples Center in Los Angeles. Union forced the countries in the so-called great enlargement to make great changes, although this was complicated and often painful for countries that had recently escaped FOREIGN NEWS totalitarianism. Foreign Minister Paet: Kosovo “Our success is one of the greatest revolutions in Status Needs to Be Settled contemporary Europe,” said the , who spoke about the European Union as a regional model for Feb 12 - It is imperative to solve the guaranteeing peace, security, and welfare. “The European question of the status of Kosovo, the Union said that if we want to join them, we must become Estonian foreign minister told his similar to them. The East Europeans managed to achieve European colleagues in Brussels. this.” Foreign ministers from member countries “However, this scenario is no longer open,” remarked Ilves, of the European Union considered the plan who said that the countries with a GDP lower than the drafted by the UN special envoy for Kosovo, European Union average will not be admitted to the union, Martti Ahtisaari, that would give the since many member nations are no longer ready for such an breakaway territory self-governance under enlargement. EU supervision if not full independence. “It will be a long time before we can speak of a new Estonia backs Ahtisaari's work to settle enlargement,” the Estonian Head of State predicted. the status of Kosovo, Urmas Paet said. "We How to assure that peace, security and welfare, not value very highly the work accomplished by unreformed and corrupt governments along with human rights Ahtisaari and accept his proposals for violations, reign along the borders of the European Union, defining the status of Kosovo," he said. asked President Ilves. The EU Neighborhood Policy offers Foreign ministers viewed the former money to reforming countries, but does not provide the Finnish president's proposals as objective prospect of membership in the Union, which would force these and realistic, and expressed support for his countries to make the greatest changes. plan to start consultations between Belgrade “There is one alternative, of course. NATO,” said the and Pristina. Estonian Head of State. “It might just be that NATO The EU foreign ministers also looked at membership represents the carrot that the EU cannot offer.” latest developments in West Balkans, President Ilves also called on the European Union to work Afghanistan, Sudan and Somalia, and the out a uniform energy policy, recalling that the Union got its situation in Iran and Middle East. start as a coal and steel community. At that time, countries Speaking about Afghanistan, the that had been at odds were able to surmount their ministers welcomed preparations for the differences, and the European Union needs the same police and expert mission. consensus today. Estonia plans to contribute one police The speech is available here. expert to the mission, the foreign minister added.

having a vote and thus Estonia can influence European affairs. "What Estonia says counts," Köhler said. The heads of state also considered further enlargement of the European Union, its neighbourhood policy and developments in Russia. Moscow views democracy close to its borders as a security risk and autocracy as a source of stability, Ilves observed. The two presidents also discussed energy security-related questions, development cooperation, global environmental policies and transatlantic relations. While in Berlin Ilves gave an interview to the radio station Deutsche Welle and Spiegel magazine, Estonian President Toomas Hendrik Ilves and attended a roundtable of journalists, and lunched German Chancellor Angela Merkel in Munich, with members of parliament, public servants and February 10. Photo: Kai Mörk representatives of think tanks.

Estonian President, German Chancellor Estonia Gives Aid to Sudan Refugees Discussed EU Energy Policy, Feb 9 - Foreign Ministry has decided to allocate Constitutional Treaty half a million kroons (EUR 32,000) from its Feb 12 - Meeting in Munich, Estonian President development and humanitarian aid budget to Toomas Hendrik Ilves and German Federal assist the refugees of Southern Sudan and Chancellor Angela Merkel acknowledged that internally displaced people in that country. relations between the two countries are very Urmas Paet signed an order by which Estonia good. wants to help relieve one of the world's biggest Questions related to the future of the European humanitarian crisis. Union were discussed, including issues related to the At least two million people have died in Sudan treaty establishing the European Constitution and a during a 21-year-old civil war as a result of which uniform energy policy. more than 4.5 million Sudanese people have had to “The formation of a uniform energy market is flee from their homes. extremely important for the welfare and security of Paet said that the political developments in Europe,” said President Ilves. Southern Sudan during the past few years give hope Ilves and Merkel also discussed issues regarding for the restoration of the socio-economic balance the future of the European Union, among others and improvement of the security situation in the those pertaining to the Constitutional Treaty and the area. common energy policy. "Estonia's support to activity of the World Food Merkel said that Estonia had no problematic Program in Southern Sudan will contribute to the issues in the European Union and asked for Estonia's alleviation of the situation of those returning home," support for progress in matters relating to the EU Paet said. Constitutional Treaty during the German presidency The UN program has launched a new major aid period. operation in the North African country aimed at President Ilves pointed out that despite support providing food to 5.5 million people. to the European Union in Estonia during the More than 682 thousand tons of food is required accession referendum was the lowest among the to do it. The total cost of the operation is 8.2 billion new member countries, the situation has changed kroons and it will last until the end of this year. by now and popular support is the highest among The sum total of development and humanitarian countries that acceded the EU in 2004. aid means in the ministry's budget is 23 million The parties also stated that regardless of kroons (EUR 1.47 mln) in 2007. problems it was important to involve Russia into the discussion over important issues, such as energy Foreign Minister Paet: Estonia Ready to policy and international key issues. Join OECD Both Ilves and Merkel underlined the importance of transatlantic cooperation and found that tensions Feb 13 - Foreign Minister Urmas Paet confirmed between some EU countries and the United States a Estonia's wish and readiness to join the few years ago were regrettable. Organization for Economic Cooperation and On his visit to , President Ilves also met Development at a meeting with the deputy with his German counterpart Horst Köhler in Berlin. secretary-general of the organization, Kiyotaka Presidents talked about the future of Europe. Akasaka, in . "Estonia is ready to support the aspirations of Paet said Estonia is able to make a contribution Germany as the presiding country of the European to fulfilling the aims of the organization and voiced Union in further handling of the Constitutional the hope that Estonia would get an invitation already Treaty. Implementation of the Constitutional Treaty in May. is a priority for both Estonia and Germany," Ilves According to Akasaka, Estonia is one of the said. countries whose candidacy for membership is According to the German president, one of the seriously considered. strengths of the EU lies in each member country Estonia and Concerned About the United Nations as its own opportunities in the Environmental Risks in Baltic Sea prevention and management of disasters are limited. Feb 9 - Meeting in , Estonian Prime Laos is situated in a high disaster potential area Minister and Per Westerberg, where major floods wreaking havoc in the mainly Speaker of the Swedish parliament, underlined agricultural country occur with nearly annual the need to pay more attention to ensuring frequency. Droughts, too, are frequent, as are land environmental safety in the Baltic Sea. slides and forest fires. Westerberg said Sweden carefully observed Assessment and consultancy missions are among progress of the gas pipeline project to be laid on the the newest developments in the UNDAC concept. bottom of the Baltic Sea and found it was necessary Earlier UN missions have assessed the situation and to thoroughly analyze all the potential dangers to coordinated aid in the first days of major disasters. the environment. UNDAC, established in 1993, is a permanent "To rule out politicizing of such projects, they team of professional crisis evaluators and should be based on business logic and be coordinators from all over the world. independent of the producers of energy carriers and Estonia has been a member of UNDAC since consumers," Westerberg said. 2000, being the only East and Central European The Swedish parliament speaker added that side country in the organization. There are four experts by side with environmental and security issues in the Estonian UNDAC group; by today they have connected with the gas pipeline the growing taken part in 12 missions. transport of oil products in the Baltic Sea was becoming an even more important issue. Estonian Lawmakers Back Participation in The meeting addressed also other energy security issues such as ensuring the security of Middle East Mission energy supply, creation of new international cable Feb 13 - A bill on sending up to five staff links and common policy concerning electricity officers on a two-year mission to Lebanon, imported from third countries. Israel, Egypt and Syria passed the first reading Both Westerberg and Ansip underlined during in the Estonian parliament. their meeting the countries' wish of continued The standing National Defence Committee enlargement of the European Union. They also found proposes to take a final vote on the bill on Feb. 21. that it was very important to continue sharing Creating stability in the conflict-ravaged Middle experience with countries that see their future in the East is a direct security interest of Estonia, an European Union. explanatory letter to the bill says. Speaking about the European Union's If the resolution is approved Estonia will send to neighbourhood policy the prime minister quoted the the region one naval staff officer to serve in the positive experience he had received from his visit to ranks of the naval contingent of the United Nations- Ukraine in mid-January. led peacekeeping force UNIFIL. "It is a clear wish of the Ukrainian people to go Estonia previously took part in the UNIFIL on with European integration and to turn their mission in 1996-97, contributing a peacekeeping economy westward," Ansip said. company of 135 soldiers. During his visit, Westerberg also met with Since March 1997 Estonia has also had military President Toomas Hendrik Ilves and Speaker of the observers serving on the UN truce supervision Estonian parliament Toomas Varek. mission UNTSO in Israel and Syria. Currently two Varek informed his Swedish colleague about the men are stationed there. developments in the field of energy security and The military participating in the truce monitoring prospects regarding participation in the construction mission have so far been regarded in Estonia as staff of a new nuclear power plant at Ignalina, . officers whose posting does not require a The Estonian speaker spoke at some length parliamentary mandate. But the Israeli-Hezbollah about Estonia's e-election project and the conflict last year showed that the UNTSO force too is expectations connected with it. Westerberg said deployed in an explosive region and therefore staff Sweden followed the process in Estonia with a lot of officers posted there should be treated on an equal interest. footing with soldiers on a military mission. In Westerberg’s meeting with President Ilves, The bill allows sending two more staff officers to issues of energy security were discussed. Ilves the Middle East if the need arises. emphasized that the energy dependence of EU The mission-related expenses will be covered member states on supplies from third countries and from the budget of the Defence Ministry. The mechanisms of solidarity in the event of outside deployment of one officer costs approximately one pressure should be assessed more thoroughly. million kroons (EUR 64,000) a year. "One has to stand against attempts of using The UN Security Council passed in August 2006 a energy supplies as a tool of political pressure," the resolution on ending hostilities in South Lebanon. president said. Under the same resolution, the mandate of UNIFIL was extended and the peacekeeping contingent in Member of Estonian Rescue Team to the region is to be increased to 30,000. Assess Situation in Laos The resolution has been approved by both the Lebanese and Israeli governments, and also Feb 9 - Argo Parts, a member of the Estonian Hezbollah leader Hassan Nasrallah hailed it. Yet rescue team, takes part in a United Nations peace remains precarious in the region and disaster assessment and coordination (UNDAC) therefore increasing the international force is seen mission in Laos. as imperative. The Rescue Board said the team of 12 experts The task of UNIFIL is to ensure security on the must assess readiness of Laos for major disasters 121-kilometer Israeli-Lebanese border. and relief. Laos addressed a respective request to

3 Estonia to Give Top National Award to DEFENCE NEWS German Member of the European Estonian Reconnaissance Platoon Was Parliament Elmar Brok Sent to Kosovo Feb 7 - President Toomas Hendrik Ilves has Feb 10 - An Estonian reconnaissance platoon, awarded the Cross of , Estonia's ESTRIF-1, was sent to Kosovo where it will highest state award, to 28 foreign nationals on serve as part of a Danish battalion (DANBN). the occasion of the 89th anniversary of the The unit will serve in Mitrovica, carrying out Republic of Estonia. reconnaissance patrols and searches and providing The Cross of Terra Mariana, 2nd class, was the safety of various sites. Commander of ESTRIF-1 awarded to MEP Elmar Brok from Germany for his is Lt. Lauri Kriiska. help to Estonia's accession to the European Union. Before leaving on the peacekeeping mission the The same award, 3rd Class, goes to member of platoon passed a training cycle at the Peace the French Senate Denis Badre, promoter of Franco- Operations Center in Paldiski. Management Estonian ties; Georgian Foreign Minister Gela procedures were coordinated, cooperation with other Bezhuashvili, promoter of ties between and units and operations in densely populated areas Estonia; UK Comptroller and Auditor General John were trained, and weapons, communication and Bourn, promoter of ties between Britain and Estonia; transport equipment of the Danish battalion were Robert E. Hunter from the United States, for help to studied. Estonia's accession to NATO; Estonia's honorary Earlier there was an Estonian military police consul in Amman Shafik Farhan Jumean, organizer platoon serving in the NATO-led KFOR peace of ties between Jordan and Estonia; and Estonia's keeping operation in rotation with and honorary consul in Islamabad, Malik Ghulam Arbi Lithuania and a reconnaissance company. The last Khar, organizer of ties between Pakistan and military police unit returned from its mission in Estonia. Kosovo last December. At present there are four 3rd Class also goes to Lithuanian MP Andrius Estonian staff officers and non-coms serving in Kubilius, promoter of Baltic cooperation; Mark A. Kosovo. More than 300 members of the Estonian Pekala, promoter of US-Estonian cooperation; and defence forces have served in Kosovo since 1999. Timo Rajala, promoter of energy cooperation between Estonia and . Jürgen Ligi Attended NATO Defence The other recipients of 3rd Class are promoter of legal cooperation between Estonia and Finland Kirsti Ministers Meeting Rissanen; promoter of judicial cooperation between Feb 9 - Estonia's Defence Minister Jürgen Ligi Estonia and Sweden, President of the Supreme took part in an informal two-day meeting of Court of Sweden Bo Svensson; promoter of NATO defence ministers in . Ukrainian-Estonian ties, Ukrainian MP Gennadi International operations in Afghanistan and Udovenko; promoter of Polish-Estonian science and Kosovo were the main topic of the meeting in the cultural ties Stanislaw Wilk; and promoter of US- southern Spanish city of Seville. Estonian ties Damon M. Wilson. The NATO ministers also met with the defence Classes 4 and 5 of the same award go to a minister of Afghanistan, Abdul Rahim Wardak. further 13 foreign nationals. On the second day of the meeting matters Estonia marks its Independence Day on Feb. 24. related to NATO transformation were discussed, first and foremost the development of the NATO Estonia Opens New Embassy Building in Response Force and possibilities of its deployment. Paris Within the framework of the same meeting an informal dinner of the NATO-Russia Council and Feb 13 - Foreign Minister Urmas Paet countries of the Mediterranean Dialogue was held. inaugurated the new building of the Estonian embassy in Paris. Joint Baltic Battalion to Be Equipped With The embassy is situated at 17 Rue de la Baume, in the 8th arrondissement in the centre of the Armoured Vehicles French capital, only a few blocks from embassies of Feb 13 - A joint infantry battalion of the Baltic the United States, Britain and and the states that is to be combat ready by 2010 will residence of the French president. according the preliminary information be Paet underlined at the opening ceremony that named BALTBAT-2 and equipped with besides acting as intermediary in political and armoured personnel carriers. diplomatic contacts, an embassy's task is to connect Each Baltic state will contribute around one-third people of two countries and promote cultural of the unit's personnel and the battalion will have exchanges. armoured vehicles, the chief of the Estonian defence Estonia and enjoy very good and close forces, Maj. Gen. , said. political and cultural ties, the minister noted, voicing "Estonia and Lithuania already have the vehicles, the hope that person-to-person contacts will become Estonia the Finnish-built Pasi and Lithuania, M-113 closer and also economic relations will deepen. of US origin," the general said. Ambassador Margus Rava thanked all Estonian Latvia plans to purchase Pandur-II type and French people whose assistance and cooperation armoured carriers from Austria in coming years made the opening of the new home of the embassy which will enter the army's armaments in 2009. possible. Laaneots said the national subunits of the The inauguration was attended by Catherine battalion will start training at home but would gather Colonna, the French minister for European affairs. for tactical exercises and combat shooting the best The renovation of the building cost more than 35 place for which is probably the Adazi training centre million kroons. in Latvia.

4 It is yet open where the battalion will be based had flown into its ballast tanks but the fuel tanks after its inclusion in NATO's rapid response force were intact. NRF but before being assigned a mission, the The tanker had left from the Russian port of commander of the said. Primorsk and was on its way to Great Britain. BALTBAT-2 will be part of NRF-14 that must in The double-hull 250-meter-long tanker was the first half of 2010 be ready for deployment in a launched last year. The ship has a crew of 25, the crisis area within five days of receiving the order and officers being Greeks and the rest of the crew independent action there during a minimum of 30 coming from the Philippines. days. Estonian Parliament Adopted Research and Development Strategy DOMESTIC NEWS Feb 7 - The Estonian parliament endorsed with Overwhelming Majority of Estonian 54 votes a research, development and People Back NATO Membership innovation strategy for 2007-13. Feb 8 - The latest survey of people's attitude The purpose of the action plan is to secure toward NATO membership shows 75 percent of competitive quality and growing scope of research residents of Estonia as being in favour of the and development activities, development of country's membership of the alliance. innovative enterprise creating new value, and an In the pro-NATO camp, firm supporters of innovation-friendly society oriented toward alliance membership made up 29 percent and those development in the long term. rather in favour of membership, 46 percent. Those The principal agencies in charge of implementing firmly against membership made up five percent and the strategy are universities and other scientific those rather against it, 12 percent of the population, institutions, the Estonian Science Foundation, the according to the survey by Turu-uuringute AS. foundations Archimedes and Innove, and the Support for NATO membership has been stable foundation. lately, fluctuating by no more than a few percentage According to the strategy paper, the monetary points. volume of research and development should by Of ethnic , 88 percent were in favour of 2014 rise to 3 percent of gross domestic product. NATO membership, compared with 44 percent of Outlays on research and development made up non-Estonians. Estonians' support for NATO 0.88 percent of GDP in 2004 and should rise to 1.5 membership has been stable in recent years. percent in 2008. Support among non-Estonians has changed more The action plan stipulates that public spending on over the years. Compared with 44 percent in the the implementation of the strategy rise from 1.4 latest survey, the rate of supporters among non- billion kroons (EUR 89.46 mln) earmarked for the ethnic Estonians was 51 percent in the previous next year to 5.2 billion kroons by 2013. Private- similar survey, and 43 percent in the survey before sector expenditure should according to the action that. plan match public spending. Support for NATO membership among ethnic In 2013 Estonia should have eight researchers Estonians was slightly higher than average among and engineers per 1,000 workers. Two years ago the men and more educated respondents. Among non- ratio was 5.0 in Estonia compared to the European Estonians the rate of supporters was higher in the Union average of 5.5. younger segment and rural respondents. Among citizens of Estonia, Estonian-speakers and Statistics Suggest Decline in Crime Rate Russian-speakers alike, support for NATO Feb 12 - By the 2006 crime statistics of the membership stood at 82 percent, with firm Estonian Justice Ministry, a drop in the number supporters making up 33 percent. of killings and robberies suggests a decline in Turu-uuringute AS conducted interviews for the crime rate. survey with 1,000 residents aged 15 to 74 from Last year 51,843 crimes were registered in Nov. 30 to Dec. 20 last year. The survey was Estonia, 3,752 or 7 percent fewer than a year commissioned by the Defence Ministry. earlier. Crimes in the first degree numbering 2,688 made up 5 percent of the total, down by 10 percent Divers Find No Oil Leak in Tanker from 2005. Propontis Hull Criminal offences against property accounted for the largest part or 63 percent of all registered Feb 9 - After an inspection of the hull of the crimes, the ministry's deputy secretary-general for tanker Propontis that scathed the sea floor in criminal policy Martin Hirvoja said. the Gulf of Finland, divers found no leak in it. "It's a pleasure to observe that the number of According to the Finnish STT news agency the robberies has decreased substantially," Hirvoja said. ship is now riding at anchor waiting for permission "At the same time, of course, the growth in crimes to move to the Neste oil port at Kilpilahti. The involving causing of serious bodily harm, Finnish ship Merikarhu is standing guard at the embezzlement and environmental crimes is tanker. worrying." The Propontis, a Greek-flagged tanker loaded Justice Minister Rein Lang stressed that a falling with 100,100 tons of crude scathed the sea floor in trend could be observed especially in crimes which the Gulf of Finland. According to the Estonian border usually serve as the basis of crime rate evaluation, guard the ship, which has a 15-meter draught, or killings and robberies. touched the sea floor at a place where the depth is "There can of course be situations where one 14 meters. concrete kind of crime suddenly shows a drop but in The contact tore two holes into the hull and such instances it's usually a case of implementation according to a representative of the company water of a new law or setting a new priority. It's the

5 number of killings and robberies that best characterizes the crime level in a country," the Eesti Telekom's Quarterly Profit Soared minister said. 29 Percent Residents of the Harju County and the capital city Tallinn are still most endangered by criminal activity. Feb 7 - Eesti Telekom, the largest Those territories have the highest crime rate per telecommunications group in Estonia, netted resident. In the Harju County comprising Tallinn 404 million kroons (EUR 25.81 mln) in the 27,233, in the Ida-Viru County 6,222 and in the fourth quarter of 2006, an increase of 28.8 County 4,973 crimes were registered in 2006. percent in comparison with the same period a The number of registered crimes was the smallest in year earlier. the island county of Hiiumaa at 131. The group's revenues in Q4 2006 totaled 1.55 As of Jan. 1, there were 4,310 inmates in billion kroons, up by 11 percent year-on-year, Eesti Estonian jails, including 41 minors. This makes Telekom reported to the stock exchange. roughly 333 prisoners per 100,000 population. Eesti Telekom's net profit in 2006, at 1.33 billion The average length of imprisonment was five kroons, was 21.9 percent bigger than in 2005. years. Only 13 percent of the prisoners were serving Last year's revenues added up to 5.77 billion their first sentence. kroons, which is 11.7 percent more than in 2005. made up 50 percent, ethnic Estonians 42 percent, and members of other ethnic groups the Estonian Owners Buy out Belgian Interest remaining 8 percent of inmates in 2006. in Motor Portal

Feb 7 - Owners of the motor portal Auto24 Elmo

Sarapuu and Marko Milius have bought out a ECONOMIC NEWS Belgian-owned stake in Autoajalehtede Kirjastus (Motor Newspapers Publishers) which publishes the Currency rates in kroons print version of the website. () Sarapuu and Milius so far owned 50 percent of the company and the other half belonged to the Estonian Car Seat Belt Maker Norma's Brussels-registered company Interinfo Holding SCA. The firm had Belgian shareholders with a small Sales up 7 Percent at Over EEK 1 Billion Finnish holding. Feb 7 - Consolidated net sales of the Estonian Sarapuu, co-owner of the Autoportaal company car safety equipment manufacturer Norma that runs the Auto24.ee website, said he and his grew last year 7 percent from 2005 to 1.05 partner bought the Belgian stake because there was billion kroons (EUR 67 mln). no point in sharing the company any more. The group's net profit increased by 2.9 percent to "As the newspaper is so closely bound with the 85.7 million kroons. A year earlier Norma netted Auto24 trademark, there was no point in carrying on 83.3 million kroons. like that, 50-50," Sarapuu explained the buyout of Sales to Russian customers rose by 15 percent the free newspaper appearing since November 2005. and sales to the parent company Autoliv, by 9 Sarapuu declined to reveal the price of the percent to 646.3 million kroons. newspaper. "No, I don't think I'm prepared to tell. In the final quarter of last year Norma earned a This was probably even written into the agreement. net profit of 30.1 million kroons, nearly half more But it's always like this that what's expensive for the than during the same period a year earlier. buyer is cheap for the seller," was all he said. Q4 sales increased by a fifth against the same Nor would he talk about the sale of the portal period of 2005, reaching 286.9 million kroons. which was established in 2002 and became hugely Sales to Russian customers swelled 36 percent popular very fast. The website has since last year due to increased orders from AutoVAZ and GAZ, and been on offer through the investment bank LHV. sales to Autoliv, at 172.8 million kroons, showed a growth of 23 percent. Estonian Builder Eesti Ehitus Boosts Export accounted for 98.4 percent of sales like a Revenue by Half in 2006 year earlier, with 53 percent of exports headed to Sweden, 38 percent to Russia and 5 percent to Feb 9 - According to preliminary unaudited Germany. results, revenues of the Estonian construction Norma invested last year 38.4 million kroons of company Eesti Ehitus reached 2.5 billion which 15.6 million kroons was ploughed into kroons (EUR 160 mln) in 2006, a 49.5 percent bolstering production capacities in the final quarter increase year-on-year. of the year. Net profit was 190.3 million kroons compared to The group employed 947 people at the end of 94 million kroons a year ago. 2006, 12 more than a year before. The number of The profit attributable to equity holders of the employees averaged 912 during the year. parent company amounted to 176.9 million kroons. Accounts receivable at the end of December The construction segment accounted for 54 and totalled 125.6 million kroons of which 47 percent the civil engineering segment, for 46 percent of related to Russian and Ukrainian customers. During revenues. In geographical terms, 91.5 percent of the 12 months the sum of accounts receivable the group's revenue was earned in Estonia and increased by 18.4 million kroons. Autoliv owed Ukraine contributed 8.5 percent. A year ago Norma 57.3 million kroons and Norma's payables to Ukraine's share was 6.5 percent. the parent company were 15.8 million kroons. The actual revenue structure now corresponds to The group's main field of activity is production the group's long-term revenue structure objective and sale of car seat belts and their components. according to which the two segments ought to Norma also manufactures car components and dies generate more or less equal revenue to maintain and molds for stamping machines. competitiveness and presence in every main

6 segment of the construction market, Eesti Ehitus said. Compared to 2005, the commercial buildings sub segment has become the biggest one in the residential and non-residential segment whereas the residential buildings sub segment has shown the biggest growth rate. At the end of 2006 the group's order backlog totalled 2.7 billion kroons compared to 1.2 billion kroons a year earlier.

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