Russian fuel oil exports via Estonia shrink

The September figure represented a 20% improvement from the same month last year. But Tallinn's oil product exports, which are mostly made up of Russian fuel oil, have dropped by 12.1% in the first nine months of 2008. Tallinn handled 15.273 million mt of oil products in the first nine months of 2008 compared to 17.38 million mt for the same period of 2007, according to the port's data.

Russia used to export around 25 million mt of fuel oil a year via Tallinn, as well as light products, according to Reuters. Following a diplomatic dispute between Russia and Estonia in April 2007, Russian railways began to divert most of the light products to its own ports.

Estonia believes it is only a question of time before Russia also begins to divert more of its heavy fuel oil shipments to its own ports in the Baltic, principally to Ust Luga port. Estonian Railways Chairman Kaido Simmermann told Reuters last month that he expected there would be no Russian oil shipments through Estonia within three or four years. Ust Luga would probably be ready to handle heavy fuel oil shipments coming from the Kirishi refinery "at the beginning of next year or in the middle of next year," he said.

Russian oil products make up a large share of Tallinn's cargo throughput. Tallinn handled a total of 21.87 million of cargo in the first nine months of 2008, a 23.7% drop compared to the same period of 2007. Simmermann told Reuters that Estonia had been expecting Russia's gradual shift to exporting its energy products through its own ports, but said last years diplomatic clash had accelerated developments. He said Estonia would focus on shipping non-strategic cargoes for Russia in the future, including container traffic.

Source http://portworld.com/news/2008/10/73465

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Lufthansa: Tallinn Airport

German airline Lufthansa named the service of passengers and aircraft of Tallinn Airport subsidiary as the most punctual in the world, the Baltic Business News Channel reported

Services rendered by Tallinn Airport was the best among the 960 airports in the world where Lufthansa is flying to.

The criteria for evaluation was the punctuality of flights, speed and accuracy of registering the flights, boarding conveniences, compliance with safety requirements and traits of serving the passangers.

Rein Loik, the CEO of Tallinn Airport, said that the most positive is that the result was achieved in an environment with limited opportunities – at the time when the new terminal was not completely ready for serving the passengers.

Steve Woodward, the manager of Lufthansa Nordic and Baltic countries, said that giving the certificate to an Estonian company is extraordinary since it is the first time during his 30-year service.

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Estonian state owned companies to lose hundreds of millions kroons

The new state budget draft act tightens state companies’ chubby dividends and the state isn’t ashamed to take dividends even form companies in loss.

According to the draft act, all state companies have to pay dividends. Estonian State Forest Management Centre RMK has to pay the largest dividends. “RMK earns a profit which undistributed part can be taken out, EEK 680 mln of that money is planned in 2009 state budget,” press representative of Estonian Ministry of Environmental Affairs said, Postimees writes.

Also the postal company Eesti Post has to give the state EEK 10 mln next year even despite the fact that the company has been in loss for the last years. Chairman of the supervisory board, Meelis Atonen, said that such plan came for him as a surprise. “Eesti post is a company that is fighting with loss,” he said. “Taking dividends in such situation is very wrong. A proper owner wouldn’t do that.”

State owned energy company Eesti Energia has to pay the state EEK 123 mln in dividends, AS Lennuliiklusteenindus EEK 75 mln and Port of Tallinn EEK 100 mln.

In addition, Estonian central bank should to pay the state EEK 200 mln, Eesti Loto EEK 102 mln and Eesti Telekom EEK 300.125 mln.

Source http://balticbusinessnews.com/default2.aspx

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