Estonia and Sweden

08.06.2009

The Kingdom of Sweden re-recognized the Republic of Estonia on 27 August 1991, being the first country to appoint its Ambassador to Estonia. Swedish Ambassador Lars Arne Grundberg commenced his assignment in Tallinn in August 1991.

Sweden's current Ambassador, Jan Palmstierna, has been in office since September 2008. Since February 2007 is Estonian Ambassador to Sweden Alar Streimann.

Estonia also has five Honorary Consuls in Sweden: Veljo Pärli in Visby, Lars Johan Söderström in Malmö, Lars Werner in Karlskrona, Harriet Lagebo Eskilstuna and Lars-Eric Boreström in Gothenburg. Sweden has two honorary consuls in Estonia – Ahti Puur in Narva and Madis Kanarbik in Tartu.

Bilateral relations

Estonian-Swedish bilateral relations have traditionally been very good and close in the areas of economic affairs, defence and culture. Openness, mutual understanding, trust and goodwill characterize these relations. As countries of the Baltic Sea region, Estonia and Sweden also promote active co-operation in the area of environmental protection.

Already in July 1990, Sweden started providing state assistance to various fields in Estonia. Swedish aid represents 14.2% of the total aid Estonia has received to date.

A significant dimension was added to the bilateral relations in the year 2000, which was named as the year of the Baltic countries. The main objective of this initiative was to introduce the Baltic countries to the European Union and to inform the public in the three Baltic countries of European Union-related matters. Sweden was also one of Estonia's greatest supporters in its integration process with the European Union.

Defence co-operation between the two countries is also important. In 1998, an arms purchase agreement was signed; co-operation is conducted in the fields of counseling-, logistics-, training- and environment. In the course of the visit of Swedish Defence Minister Björn von Sydow in October 2001, Estonia was handed over equipment for an infantry battalion and a new study room called the hall of Björn von Sydow was opened at the Defence College in Tartu.

Also, upon Estonia’s joining NATO, Sweden continued to render military aid to Estonia. But closer co-operation is conducted in the framework of the European Union’s Common Security and Defence Policy (ESDP). In the first half of 2008, Estonia participated in the Swedish-led Nordic Battle Group.

Visits of importance

In April 1992, King Carl XVI Gustaf of Sweden and Queen Silvia visited Estonia. This was the first royal visit to the restored Republic of Estonia. In June 1995, Princess Lilian visited Estonia. In May 2002, King Carl XVI Gustaf of Sweden and Queen Silvia paid a private visit to Estonia.

In addition to bilateral visits, the members of Estonian and Swedish cabinets often meet at different international and regional forums; especially close is communication in the framework of EU and NB8 (Nordic-Baltic). Co-operation and exchange of information at the level of specialists of state agencies of both countries has turned out to be regular and business-like.

Economic relations

ECONOMIC CO-OPERATION

Since the restoration of Estonia's independence in 1991, Sweden has rendered significant economic support to Estonia. Co-operation continues at bilateral and multilateral levels within SIDA's (Swedish International Development Co-operation Agency) programmes, in the Council of Baltic Sea States and in various EU projects.

Direct contacts between the regions and the local governments play a significant role in economic co-operation and have become very extensive (there are more than one hundred co-operation projects between Estonian and Swedish local governments).

To actively promote Estonia's economic interests in Sweden, Enterprise Estonia opened its representation in Stockholm in March 2002. In May 2008, Prime Minister Andrus Ansip opened the Sweden-Estonia Chamber of Commerce in Stockholm.

TOURISM

In terms of the number of foreign tourist coming into Estonia, the Swedish rank in third place after the Finnish and Germans, although the number of Swedes has declined in the past few years. In 2005 the number of guests that used lodging establishments broke one hundred thousand (108 117 Swedish tourists ), in 2006 nearly 106 000 Swedish tourists stopped in Estonia, in 2007 it was 90 221 Swedish tourists, and in 2008 there were 86 308 tourists from Sweden.

TRADE

* Pre and post 1 May 2004 data are incomparable. After accession to the EU, the import is calculated on the basis of the sending country, earlier this was based on the country of origin.

From the Estonian side, Sweden is still among the most important trade partners — in 2008, our total trade turnover with Sweden remained behind in Finland in second place. Sweden’s relative importance in Estonian foreign trade is now remaining stable after a long period of growth — in 2007 trade with Sweden made up 11.4% of total turnover, in 2008 it was 11.7%, and in the first quarter of 2009 it was 11.4%.

Between 1995 and 2008 Estonian export to Sweden grew from 140 million euros to 1.16 billion euros and imports from Sweden in that same period grew from 150 million to 1.08 billion euros. In 2008, Estonian export to Sweden grew by 10% and import from Sweden declined by 10.5%. In the first quarter of 2009, Estonia exported goods valuing 220 million euros to Sweden (25.1% less than in QI 2008); imports in the first quarter totalled 150 million euros (50.8% less that QI 2008). The Estonia-Sweden trade balance for QI 2009 was positive for Estonia by 70 million euros. Export to Sweden was 14.8% of total exports and imports made up 8.6% of the total value of imports.

Estonian – Swedish trade 2000-2008 (in millions of EUR)

Main export articles in 2008:

• Machinery and equipment - 43.4%
• Wood and wood products - 11.8%
• Metals and metal products - 8%
• Other manufactured goods - 6.4%
• Textiles and textile products - 6%
• Transport/automotive products - 6%

Main import articles in 2008:

• Machinery and equipment - 32.2%
• Transport/automotive products - 22.8%
• Metals and metal products - 12.4%

Export and import structure has been relatively stable throughout the years.

All economic figures originate from the Statistical Office of Estonia

Among Sweden’s trade partners, Estonia was in 2008 in terms of the turnover the 25th largest export partner with 8.87 billion SEK or 0.8% of total exports. Estonia’s share in Sweden’s total imports in 2008 accounted for 0.7% (7.9 billion SEK), with which Estonia took 23rd place among import partners.

INVESTMENTS

As of the end of 2008, Bank of Estonia data showed that about 11.6 billion euros’ worth of foreign direct investments had been made in Estonia. Sweden is Estonia’s greatest foreign investor, whose investments as of 31.12.2008 totalled 4.65 billion euros (39.9% of total investments, 4.4% more than it was as of 31.12.2007). Most of the investments are made in the Estonian banking and real estate sector.

As of February 2009, the companies with the greatest Swedish participation in Estonia are AS Hansapank, AS Eesti Telekom, AS SEB Pank, AS Kunda Nordic Cement, Arco Vara AS, AS If Eesti Insurance, Rimi Eesti Food AS, AS Norma, AS Põltsamaa Felix.

Among destinations for Estonian direct investments, Sweden holds the modest 14th place (total volume of investments as of 31.12.2008 is 31.5 million euros [0.7% of Estonia’s total direct investment volume, 3.4 times more than 31.12.2007]).

AGREEMENTS

After accession to the European Union, Estonia’s free trade agreements with EU member states were terminated. The economic relations are governed by the regulations of the EU's internal market.

All the important bilateral economic agreements have been signed:

• Environment-related Co-operation Agreement (came into force 30.03.92);
• Agreement on the Promotion and Mutual Protection of Investments (came into force 20.05.92);
• Agreement on the Organizing of International Highway Transportation of Passengers and Goods (came into force 30.07.92);
• Agreement on Mutual Assistance in Customs Matters (came into force 30.10.93);
• Agreement on Rendering Medical Aid to Temporary Visitors (came into force 01.11.93);
• Aviation Agreement (came into force 30.11.93);
• Convention on the Avoidance of Double Taxation of Income and Capital and on the Prevention of Tax Evasion (came into force 31.12.93);
• Agreement on the Abolition of Visa Requirements (came into force 01.05.97)
• Co-operation agreement in the field of maritime and air search and rescue (came into force 06.03.2007).

Cultural relations

The beginning of a new era in the cultural ties between Estonia and Sweden was marked by the establishment of the Estonian Institute in Stockholm in 1999, which was opened by Foreign Minister Toomas Hendrik Ilves on 3 November 1999.

Estonia has become richer thanks to Swedish assistance given to renovate several valued architectural sites. In the framework of a Swedish governmental project, “Österled” , Kadriorg Palace, the Swedish St Michael's Church and a wooden house in the Kalamaja district on Väike-Patarei tänav were renovated.

In September of 2007, Estonia was the main guest at the popular Göteborg book fair. In conjunction with this, a series of Estonia-themed cultural events took place all over Sweden, which introduced not only Estonian literature and language but also culture more generally—through art, music, theatre and film. The book fair was opened by President Toomas Hendrik Ilves. Altogether the fair saw over 100 000 visitors, and most of those also visited the Estonian pavilion, also called the “black cube”. A large number of the close to 20 works by Estonian writers that were especially produced for the fair and the almost 250 works that were put out altogether were sold out during the fair. One very popular selection was Imbi Paju’s “Memories Denied” („Tõrjutud mälestused”), along with Jaan Kross’s “Treading Air” („Paigallend”), and Eeva Pargi’s “Lõks lõpmatuses”.

Neeme Järvi has served for a long time (1982-2004) as principal conductor of the Gothenburg Symphony Orchestra.

In the spring of 2005, as an outcome of a long-lasting and thorough co-operation between Estonian and Swedish experts, the long-expected most voluminous Swedish-Estonian Dictionary of all times containing 100,000 key words was published.

In June 2006, a separate section of the Läänemaa Museum in Haapsalu was openened for a permanent exposition of the works of Ilon Wikland, an artist born in Estonia, but raised in Sweden. Ilon Wikland won fame for her illustrations of Astrid Lindgren’s books. The Gallery’s name is Iloni Imedemaa (Ilon’s Wonder Land). From this has developed the Ilon Wikland Centre, which will open on 1 July 2009.

In May 2008 a formal concert took place in Stockholm’s Berwaldhallen, during which Estonia presented a musical gift to Sweden in honour of the 90th anniversary of the Republic of Estonia. The performers at the concert were the Estonian National Symphony Orchestra, conducted by Olari Elts, the Estonian Dream Big Band, and Swedish electric guitarist Mattias Torell. The gift was Toivo Tulev’s new piece ‘Future Continuous’; works by Erkki-Sven Tüür and Igor Stravinski were also performed at the concert.

In August of 2008, Sweden awarded Mart Laar the Order of the North Star – Commander with Grand Cross for his contribution as both a politician and a historian to ensuring the independence of Estonia and the development of democracy, for close co-operation with Swedish politicians from his first term as prime minister, and for prioritising the development of good relations between the two countries. The Order of the North Star was established by Swedish King Fredrik I in 1748. Today it is given to honour members of the Swedish King’s House and foreigners that have done a service for the country of Sweden.

Estonians in Sweden

Unlike the coastal Swedes, who lived on the Estonian Islands and on the west coast for centuries, the significant Estonian communities in Sweden were established in the 20th century. However, Estonians have travelled throughout Sweden and taken up residence there for centuries.

The 20th century cardinally changed this situation. If pre-World War II, only a few hundred Estonians lived in Sweden, then Estonians fleeing the war in 1943-1944 swelled the number to some 20,000 after the war. With the birth of new generations in the 1950s and 1960s this figure rose to 30,000. All 7 000 coastal Swedes fled from Estonia to Sweden.

Estonians and coastal Swedes organised several events in the spring and summer of 2004 commemorating the 60th anniversary of the escape from the Soviets. Among other things, on the coast of Dalarö in Haninge commune, a monument for WW II boat refugees "Departure and Homecoming" was unveiled; in the Museum of Occupations in Tallinn an exhibition dedicated to the massive flight from Estonia was exposed, opened by the Swedish Minister for Policy Co-ordination (current Minister for Finance), Pär Nuder, who is also the descendent of an Estonian boat refugee.

During the past few years a very relevant topic has been the re-burial in Estonia of famous Estonians who passed away in Sweden, which has been mare more acute by the lack of descendants, neglected graves, and other such issues. Towards the end of the summer in 2008, the remains of Jüri Uluots were buried in Kirbla in Läänemaa. Also in 2008, former Minister of Education Jaan Lattik and his wife were brought to Estonia and buried in Viljandi. In August 2006 the remains of former Head of State August Rei and his wife Therese Rei were brought back to Estonia and buried in a formal ceremony in the Metsakalmistu in Tallinn. Early, in August 2002, the remains of worthy diplomat and prime minister in the Exile Government Aleksander Warma, along with those of his wife, were brought over from Sweden and re-buried in the Metsakalmistu.

Presently, more than 10,000 Estonians live in Sweden, and most of them have located in the larger cities or their suburban neighbourhoods – 4,000 in Stockholm, 2,000 in Gothenburg.

From the post-war years onward, the Estonian community successfully integrated into the Swedish community. The Estonian community also worked actively to preserve its national heritage and to raise awareness about Estonia through its many associations, societies and unions (the Estonian Committee, the Union of Estonians in Sweden, the Estonian Culture Society, the Estonian Committee (liquidated in 2006) etc). During the peak period, some 400-500 Estonian organizations had been active in Sweden. Today approximately 100 are still functioning. Also, many Estonian language periodicals are published – as the newspaper Eesti Päevaleht and the journal Rahvuslik Kontakt. In Stockholm, an Estonian kindergarten and Estonian school with ca 180 students function (from 1st-9th form). In Gothenburg, Estonians are planning to re-open its school alongside the Estonian nursery school.

Estonian Houses function as important centres for preserving and developing the Estonian heritage in Sweden.

Estonians in Sweden: www.rel.ee