BONJOUR L'ESTONIE

Russia considers waiving visas for train passengers (up to 3 days)

Foreign visitors traveling to Russia by train may soon be able to enter the country visa-free for up to three days in a measure aimed at opening up the notoriously bureaucratic nation to short-term tourists.

State newspaper Rossiiskaya Gazeta reported Tuesday that parliament is currently discussing legislation that would make the measure possible.

The proposed bill follows a similar law passed in 2009 that made it possible for visitors arriving by cruise ship or ferry to stay in Russia for up to three days without a visa. Industry analysts say the law resulted in a significant boost in tourism numbers to the northern port city of St. Petersburg, which lies near Finland and Estonia.

"Rostourism always supports any easing in visa regulations, as it directly encourages the development of incoming and internal tourism and brings revenue to our economy," tourism agency spokeswoman Irina Shchegolkova was quoted as saying by Rossiiskaya Gazeta.

Britain has just 2.71 doctors per 1,000 people... which is fewer than Latvia, Estonia and Lithuania

Britain has fewer doctors per person than nearly all other European countries, a new report has today revealed. There are an average of 2.71 practising medics for every 1,000 people, compared to six in Greece, which tops the list, five in Austria and just under four in Italy. A report by the European Commission ranks the UK 24th out of 27 countries in the EU, behind some of the poorest countries including Bulgaria, Estonia and Latvia.

Only Poland, Romania and Slovenia have fewer doctors per head.

Health groups and unions last night branded the situation extremely worrying and urged the Government to get a grip on staffing levels. Critics said the shortages have serious implications for patient care. Dr Paul Flynn, Chair of the British Medical Association’s Consultants Committee, said: "Policy makers need to get a grip on NHS workforce planning."

Projected imbalances between different specialties will have serious implications for patient care and we are already seeing the effect of staff shortages in key areas such as emergency care. In addition, despite the pledge to protect front-line services, many employers in the NHS are freezing recruitment in response to financial pressures.

Putin triumphs in 2013 yet tough challenges loom

MOSCOW — Displaying the killer instincts of a chess grandmaster, Vladimir Putin rang out 2013 with an exceptional list of accomplishments.

The Russian president humiliated the United States by sheltering NSA leaker Edward Snowden, brokered a Syrian chemical weapons deal that averted a seemingly inevitable U.S. military strike and outmaneuvered the 28-nation European Union in the wrestling match for influence over Ukraine.

Putin also surprised both his own people and the world by pardoning his old foe, former oil tycoon Mikhail Khodorkovsky, and allowing an amnesty that got two Pussy Riot punk band members and over two dozen Greenpeace anti-oil drilling activists out of prison. “It’s Putin’s moment. He should feel quite happy,” said Gleb Pavlovsky, a political strategist and onetime adviser to the Kremlin.

But as the 61-year-old leader prepares for his pet project – the 2014 Winter Olympics in Sochi – to begin in February, dark clouds are hovering. Two terrorist attacks in the southern city of Volgograd this week raised the specter of continuing violence in the run-up to the games. In addition, the Sochi Olympics are still dogged by fierce criticism over the Russian law signed by Putin that bans so-called “gay propaganda” for minors.

And beyond the Olympics, bigger risks loom. Russia’s ailing economy continues to depend almost entirely on oil and gas. Even though energy prices have remained high, the country is on the brink of recession with growth at just over 1 percent, not enough for Putin to meet his generous social obligations.

New euro member Latvia brings dirty money headache

RIGA — When Latvia adopted the euro on Jan. 1, it brought with it a banking sector that is swelling with suspicious money from Russia and the east — just as the currency bloc is trying to clamp down on such havens.

It was just nine months ago that the eurozone had to rescue Cyprus, a similarly tiny member state that also specialized in attracting huge deposits from Russia. Since then, eurozone leaders have vowed to crack down on financial sanctuaries and improve transparency.

But as the 18th member of the eurozone, Latvia is likely to see a greater — not smaller — influx of dirty money as the country will be viewed as safer than other former Soviet states while financial oversight remains loose.

"Immediately after Latvia joins the eurozone, I imagine we're going to see an actual spike in dubious money flowing in," said Mark Galeotti, a professor at New York University who researches organized crime in the former Soviet Union. For years, Latvia's political and financial leaders had hoped to create a mini-Switzerland in Eastern Europe — a place where capital in unstable countries such as Russia or Kazakhstan could either park for a while or channel its way further west to banking meccas like Zurich or London.

Romania records fourth largest wage rise in EU

Hourly labor costs in Romania rose 4.2 percent in the third quarter against the same period in 2012. Romania’s increase in hourly labor costs – which include wages and salaries, social contributions and employment taxes – was among the largest in the EU, behind Estonia (+8.1 percent), Lithuania (+6.2 percent) and Latvia (+5.9 percent).

In terms of wages, Romania’s increase was also 4.2 percent in Q3 this year, compared Q3 in 2012, alongside a 4.2 percent increase in non-wage labor costs, the Eurostat statistics show.

In the business economy, the hourly wages rose 2.9 percent including a 2.9 percent rise in wages, while in the non-business economy they rose 8.5 percent. Breaking the Q3 year-on-year rises down by sector, industry saw a 3.7 percent jump in wages, construction a 3.4 percent increase and services a 2.3 percent.

Hourly labour costs in the euro, EA17 countries, rose by 1.0 percent in the year up to the third quarter of 2013, compared with +1.1 percent for the second quarter of 2013. In the EU28, the annual rise was also 1.0 percent up to the third quarter of  2013, compared with +1.1 percent in the previous quarter. For more information click here

Shaun Turton [email protected]

Russia missile deployment causes concern abroad

Poland and the Baltic states of Estonia, Lithuania and Latvia on Monday expressed alarm at reports that Russia planned to deploy, or already has deployed, Iskander-M missiles close to their borders.

The Estonian and Lilthuanian defense ministers both called the news "alarming," describing it as "cause for concern."

Latvian Defense Minister Artis Pabriks said on Monday that such a move would change the "balance of powers in our region" and "threatens several Baltic cities." The United States also expressed its concern, with State Department deputy spokeswoman Marie Harf saying "we've urged Russia to take no steps to destabilize the region."

Washington said it had received no official word from Moscow about the deployment.

Satellite images

On Saturday, the German mass-circulation Bild newspaper reported that secret satellite imagery showed Iskander-M missiles stationed near the Polish border.

A new use for orange peels : squeezing oil from the Utah desert

A boom in oil production Utah has increased the state’s output to the highest level in 25 years, but that rising tide also is giving a lift to more exotic plays:  petroleum trapped in sand and hard shale rock.

Eastern Utah has the largest oil sands formation in the U.S. as well as extensive oil shale rock resources—not to be confused with the shale oil extracted from the Bakken formation astride the North Dakota and Saskatchewan border. These have never been economically viable in the U.S., but a combination of advances in technology and higher crude prices has led to several new proposals for open pit mines in and around the sagebrush-covered Uinta Basin.

Among the most aggressive proponents are Calgary–based US Oil Sands Inc. and Enefit American Oil, the U.S. unit of Estonia’s state-run utility. But both companies’ projects have triggered fierce opposition from environmental groups and a healthy dose of skepticism from critics who doubt their viability.

Euro-bound Latvia returns to deflation, with strong growth

Latvia returned to deflation in November as consumer prices fell by 0.4 percent on a 12-month basis, official data showed on Monday, just weeks ahead of the Baltic state's eurozone entry. The national statistics office also released data showing that Latvia remained on track to post the strongest growth in the European Union for a third year running.

The Baltic state of two million people will swap its lats currency for the euro on January 1, becoming the eurozone's 18th member.

Alongside this development, Latvia along with the other Baltic states of Estonia and Lithuania is considered by economists to form part of what they term emerging Europe, a region which they say is now well placed for firm recovery provided that the eurozone continues to climb away from recent recession.

In Latvia, shops and services are already displaying prices in both currencies, while post offices will release the first euro-coin starter packs to the public on Tuesday.The 0.4-percent deflation rate in November on an annual basis followed a zero rate in October.

Finns flock to Estonian private health care

Because of long queues for surgery and expensive private health care at home, more and more Finns are turning to private hospitals in Estonia. However, in cases of malpractice, seeking compensation may prove difficult.

The affordable rates at Estonian dental clinics have long attracted Finns. Now More Finns are also crossing the gulf for outpatient surgery at Estonian private hospitals. New businesses in the Estonian health care sector are increasingly challenging the Finnish private sector. One such business is Medimatkat.

Among services offered by the Estonian company are operations for varicose veins, gall bladders and knee joint keyhole surgery.Konstantin Fleidervis, a General Surgery Specialist with Medimatkat, has worked in Finland, and says that patients here suffer from an inefficient health care system and surgery queues. 

Kela compensates for Estonian services

Maxima moved management to Estonia over internal dispute

Lithuania’s richest businessman, a 46-year-old Nerijus Numavičius, is managing the activities of Maxima Grupe, a chain of more than 500 stores, from Tallinn, wrote Ärileht.

Maxima Grupe belongs to Vilniaus Prekyba in which Numavičius owns two-thirds of the shares. The reason for the move to Tallinn seems may have been internal dispute among the shareholders of Vilniaus Prekyba.

According to media sources, the internal disputes started several years ago when the company’s former business partner Julius Numavičius who is based in Florida filed an EUR 120m lawsuit against the company and requested that the court seizes EUR 9m worth of assets belonging to Nerijus Numavičius.

The court in Vilnius ruled last week that no seize was necessary because Nerijus Numavičius has sufficient assets to cover the claim.

Ärileht reported this week that Lithuania’s richest businessman, a 46-year-old Julis Numavičius is claiming, among others, that Vilniaus Prekyba entered into several fictious transactions in 2010 as a result of which holdings in several related companies ended up at the ownership of Vladislavas Numavičius, his father.

Nerijus Numavičius is the richest businessman in the Baltic states who is estimated to be worth more than a billion euros.

Toomas Hõbemägi

Balticconnector gas pipeline sea bottom studies start in Estonia

Finnish gas concern Gasum plans together with Estonian gas distribution grid EG Vorguteenus the Balticconnector gas pipeline which would link natural gas grids of Finland and the Baltic states, LETA/Public Broadcasting reports.

The sea bottom studies for evaluating the environmental effects and planning of the project start in the Estonian territorial waters tomorrow and will continue next week in the Finnish territorial waters. After the studies, all the necessary data to start the environmental effects evaluation (EEE) have been collected, said Gasum.

The Balticconnector project requires EEE in both Finland and Estonia and the current sea bottoms study supplements data needed for EEE. The data is also used to optimise the location of the pipeline and in installation of pipes safely.

Balticconnector is a project costing more than 110 million EUR, where a gas pipeline passing through the Gulf of Finland will link natural gas grids of Finland and the Baltic states. Linking the gas grids coincides with the plan of Gasum to build an LNG terminal in Inkoo Joddböle.

Estonia and Russia plan to tackle drug smuggling

Plans to launch an Estonian-Russian anti-drugs task force have been revealed.

Estonian Interior Minister, Ken-Marti Vaher met with Viktor Ivanov, the director of the Russian Federation's Federal Drug Control Service on Nov. 7 to discuss plansm, reports ERR.

 "We clarified our respective countries' drug problems and current situation both regarding the area of circulation of specific substances, as well as the discovery of the possible production locations and trafficking routes of the synthetic drugs causing the most deaths," said Vaher. 

In recent years Estonia has served as a transit zone for smuggling drugs into Europe. The country has seen a sharp rise in the use of deadly synthetic drugs, largely coming from Russia.

In 2012, fentanyl was the cause of 80 percent of drug-related deaths in Estonia.

During his two-day meeting, Ivanov also met with officials from the Foreign Ministry, the Tax and Customs Board and the Estonian Forensic Science Institute. He also met with the head of the Russian Orthodox Church in Estonia.

Lithuania and Estonia saw substantial increases in air passenger volumes in 2012

In 2012, Riga International Airport suffered one of the largest reduction in passenger numbers amongst European Union airports, according to the EU's statistical office Eurostat, cites LETA. Meanwhile, Lithuania and Estonia saw substantial increases in passenger volumes in 2012.

Overall, passenger volumes in the EU in 2012 increased by 0.7% to 826 million, Eurostat informs.

Latvia saw a 6.7% reduction in passenger numbers last year to 4.76 million, which was the fourth largest reduction in the EU. Riga International Airport registered the sixth largest reduction in passenger numbers in 2012 amongst EU airports.

Meanwhile, Lithuania and Estonia saw substantial increases in passenger volumes in 2012 – Lithuania saw a 17.6% increase to 3.17 million, while Estonia registered a 15.5% increase to 2.2 million passengers.

The largest decrease in air passenger numbers in the EU last year was registered in Slovenia and Slovakia – by 14.1%, and 13.5% respectively.

According to Eurostat, London's Heathrow Airport had the largest passenger turnover in 2012 – 69.9 million passengers, followed by Paris' Charles de Gaulle Airport – 61 million passengers, Frankfurt Airport – 57 million passengers, Amsterdam Schiphol Airport – 50 million passengers, and Madrid Airport – 45 million passengers.

UK "2nd worst for fuel poverty"

The UK is second only to Estonia among European nations for the number of people who are struggling to pay their energy bills, according to research by the fuel poverty alliance Energy Bill Revolution.

The fuel poverty alliance said "woeful" levels of insulation have led to Britain's homes falling "way behind" those of comparable European countries such as Sweden, Germany and the Netherlands. The alliance said the wholesale cost of gas in the UK was much lower than in most European countries but households paid much higher bills due to the amount of heat lost from homes.

There are more than five million UK households living in fuel poverty, defined as spending more than 10% of their income on energy. The Energy Bill Revolution said it wanted to see carbon tax spent on an ambitious programme of home insulation, claiming that it could save up to £500 a year on a family energy bill and eliminate fuel poverty in the UK "once and for all".

The groups warned party leaders that focusing on "short-term solutions" to the energy bill crisis, such as price caps, windfall taxes and cutting green subsidies, they were "ignoring the only way to truly solve the energy bill crisis".

 

Dual citizen of US and Iran charged in NYC with trying to acquire surface-to-air missiles

NEW YORK — A dual citizen of Iran and the United States is being held for trial in Manhattan on charges that he conspired to acquire Russian-built long-range surface-to-air missiles for the Iranian government, authorities announced Friday.

Reza Olangian of Los Gatos, California, was arrested in Tallinn, Estonia, in October 2012 and extradited to the U.S. in March, prosecutors said as they released a criminal complaint and an indictment charging him with multiple crimes including conspiracy to attempt to acquire and transfer surface-to-air missiles as well as violations of the International Emergency Economic Powers Act.

In a release, Derek Maltz, special agent-in-charge of the DEA Special Operations Division, said: "Mr. Olangian's conspiracy could have put American lives at risk, as well as those of our friends across the globe."

According to court papers, Olangian first tried unsuccessfully to obtain about 100 missiles for the Iranian government in 2007. The documents alleged that he began negotiating a new deal for missiles in early 2012, unaware that he was dealing with a confidential source for the U.S. Drug Enforcement Administration, who posed as a weapons and aircraft broker from Russia.

Only 11% of Romania’s internet users shop online, lowest share in the EU

Only 11 percent of Romanian internet users are online shoppers, this being the lowest share in the European Union, according to the recent data provided by Eurostat.

Romania is followed by Bulgaria, with a share of 17 percent and Estonia and Italy – both 29 percent.

The highest shares of online shoppers were registered in the United Kingdom, with 82 percent of the internet users shopping online, followed by Denmark and Sweden – both 79 percent and Germany with a share of 77 percent.

In the EU28 in 2012, 75 percent of individuals aged 16 to 74 used the internet in the previous 12 months, and 60 percent of them were online shoppers. “Ordering clothes & sports goods and booking travel & holiday accommodation are the most common online purchases amongst internet users,” according to Eurostat.

Find the entire Eurostat report here.

Russian figure skater seeks Estonia switch for Sochi dream

TALLINN – Russian figure skater Alexander Zaboev is seeking Estonian citizenship, in part in order to compete in the Sochi Olympic Games in February.

Yekaterinburg-born Zaboev, 24, has been skating with Estonia’s Natalja Zabijako since October 2012 and the pair managed to qualify for the Olympics after taking ninth place at the Nebelhorn Trophy in Germany last month.

“I want to get Estonian citizenship not only to participate in Sochi, but to continue represent the country in the future,” Zaboev said on Estonian TV. “I want to represent Estonia and contribute to the development of figure skating in this country.”

Mixed-nation pairs are allowed to skate on the Grand Prix circuit, but Olympic rules require both to be from one nation, and Zaboev will be the one to switch because Russia’s Sochi slot is occupied by gold medal favorites Tatyana Volosozhar and Maxim Trankov. 

The Estonian figure skating federation has already petitioned the government to fast-track Zaboev's application “for special merits,” and a final decision is expected by January 11. If Zaboev doesn’t get citizenship in time, then Estonia will only be represented in the singles by Jelena Glebova and Viktor Romanenkov.

In May, two other figure skaters left Russia – Polina Shelepen switched to Israel and Ivan Bariev to Italy. The Olympic figure skating competition is scheduled for February 6-20.

Alexandr Vilf

Rumors of child-snatching ring debunked

ANCHORAGE - Authorities are debunking rumors going around parts of Alaska about Russian mobsters targeting children.

The Anchorage Daily News (http://is.gd/tkTq25) says the real story is that one or two people from Estonia are selling educational materials door to door with enough information about the children inside to make parents uncomfortable. The sellers started in Fairbanks and are now working in the Mat-Su Valley.

Authorities said there is no criminal gang of Russian-speaking people using school-supply sales as a ruse to steal children.

Alaska State Troopers spokeswoman Megan Peters says the salesmen apparently got the information about the children from other neighbors as they made the rounds.

The rumors started this month and posters appeared warning about strange men showing up at homes with detailed information about the children.

Russian MP admits owning a 440,000-euro apartment in Tallinn Old Town

Member of the Russian Federation Council Sergei Mamedov owns an apartment in Tallinn OId Town which costs approximately 444,500 euros, reported media.

Mamedov wrote in the obligatory statement of economic interests that he owns an apartment of 88.9 square meters in the so-called historic Jegorow apartment building on Tallinn's Town Hall Square.

While Mamedov’s apartment costs 5,000 euros per square metre, the average price per square meter of apartments in Tallinn is 1,292 euros.

The Jegorow building was acquired and renovated in around 2002 by Pro Kapital, the real estate company owned by Italian financier and property developer Ernesto Preatoni. At that time, Pro Kapital was selling apartments in the building for around 2,500 euros per square metre. Most of the apartments were snatched up by foreigners, many of them using it as an investment. It is one of the most exclusive buildings in the Tallinn Old Town which has about 60 luxury apartments.

Toomas Hõbemägi

 

Estonian entrepreneurship in Finland doubles in last 2/4 years

The number of Estonian-founded businesses in Finland has more than doubled over the last few years, but estimates of their exact number vary between 1,000 and 5,900.

Finnish daily Helsingin Sanomat said on Sunday that the norm is a small construction company, janitorial company or beauty salon, employing up to four people.

Finnish tax authorities put the number of businesses with an Estonian background at 3,500, more than double the number of only two years ago, while the Estonian embassy in Helsinki said the figure is closer to 1,000.

The Finnish Business Information System said 5,900 companies in the country have been founded by Estonians, but that figure includes dormant companies. Four years ago, that figure was less than 3,000.

The daily said the reasons for leaving Estonia to set up ventures in Finland are higher salaries, a larger market, a lower level of black market activity and the reliability of the economy. Some Estonians made the move for family reasons, it said.