Estonia and Lithuania

29.10.2009

Lithuania recognised Estonia on 2 March 1921 and re-recognised the independent Republic of Estonia on 22 August 1991. Diplomatic relations between the two countries were re-established already on 16 June 1991, before the restoration of independence.

The current Lithuanian Ambassador to Estonia Juozas Bernatonis presented his credentials in October 2006. Estonian Ambassador to Lithuania as of October 2008 is Tiit Naber. Estonian Honorary Consul in Lithuania is Virginijus Biskys.

Estonia and Lithuania’s relations have been characterised by similar foreign political priorities for the past decade—integration with the European Union and NATO. Consequently, co-operation and relations between the two countries are very close. The presidents, prime ministers and foreign ministers meet regularly. In addition, meetings between high-ranking state officials of Estonia and Lithuania have taken place in various Baltic co-operation organs and structures and within international formats. Communication is also active on a lower level among various state institutions.

Estonia-Lithuania relations can also be viewed within the context of trilateral co-operation among the Baltic states. However, today most of the trilateral agreements regulating the relations of the Baltic states have been replaced by the corresponding European Union directives, regulations and codes.

Visits

Defence Co-operation

Defence co-operation takes place trilaterally and became active after 12 February 1995, when the defence ministers of Estonia, Latvia and Lithuania concluded a trilateral defence-related co-operation agreement. Trilateral defence co-operation has been an outstanding example of the co-operation capabilities of small countries in the security sector both before Baltic integration with transatlantic and European security organisations and now, when all three countries are full members of NATO.

The following have been established within the framework of Baltic defence co-operation:

BALTNET (Baltic Airspace Surveillance Network) - A system for the co-ordination and distribution of air surveillance data, established in 1998.

Air policing – guarding the Baltic airspace in co-operation with NATO member states
Baltic Battalion in NRF-14 – the joint infantry battalion of the Baltic states

BALTDEFCOL (the Baltic Defence College) - A joint military education institution established in 1998 for the training of senior staff officers and civil servants.

BALTSEA (Baltic Security Assistance Forum) – The programme was established in 1997 to increase military capabilities. BALTSEA co-ordinates the supply of defence-related support to the Baltic States. Estonia, Latvia and Lithuania’s voluntary defence organisations co-operate very actively.

BALTRON (Baltic Navy Squadron) - A naval force with mine countermeasure capabilities was established in 1998 for the purpose of participating in international peace support operations.

Agreements

• Agreement on the Avoidance of Double Taxation of Income and Capital and the Prevention of Tax Evasion (came into force 31.12.93);
• Air Services Agreement (came into force 05.09.95);
• Agreement on the Promotion and Mutual Protection of Investments (came into force 20.06.96);
• Agreement on Social Insurance (came into force 10.02.97);
• Agreement on the Mutual Protection of Classified Information (came into force 15.11.00).

Economic Relations

Economic contacts between Estonia and Lithuania have developed rapidly. Lithuania due to its geographic proximity and its large developing market, offers opportunities in several sectors. Lithuania continues to be Estonia's good economic and trade partner.

TRADE

As of 2008, Estonia’s goods exchange with Lithuania was 22.58 billion kroons. During that period, Estonia sent 7.57 billion kroons’ worth of goods to Lithuania (growth of 2% compared with the same period in 2007) and received goods from Lithuania valuing 15.01 billion kroons (growth of 20%). The trade balance was negative for Estonia by 7.44 billion kroons—this is primarily due to importing automobile fuel from the Mažeikiai petroleum refinery.

In 2008, Lithuania ranked 5th among target countries for Estonian exports (5.7% of Estonia’s total exports were sent to Lithuania). As a source of imports, Lithuania also ranked in 5th place (8.9% of Estonian imports arrive from Lithuania).

Major export articles to Lithuania i2008 (% of total export to Lithuania):

• Transport vehicles, other vehicles – 22.1%
• Prepared foods; drinks; tobacco – 10.8%
• Machinery and equipment – 9.6%
• Metal and metal products – 8.5%

Major import articles from Lithuania 2008 (% of total imports from Lithuania):

• Mineral products – 55.4%
• Machinery and equipment – 8.9%
• Chemical products – 7.5%
• Prepared foods; drinks; tobacco – 6.9%

All economic figures originate from the Statistical Office of Estonia

INVESTMENTS

Estonian investments in Lithuania

Lithuania has been one of the most important investment countries for Estonia for years—as of 30 June 2009, 28.0% of all Estonian direct investments abroad were made there. The total value of Estonian investments in Lithuania was 20.23 billion kroons at the end of the first half of 2009. According to the data of Statistics Lithuania, as of 1 April 2009 Estonian direct investments made up 7.5% of all direct investments in Lithuania, which means Estonia placed 4th among investors.
Currently the largest investments made in Lithuania are Hansapank, the Vakaru Laivu Gamykla owned by Balti Laevaremonditehas (BLRT), and the successful activities of the subsidiaries of Olympic Casino and Merko Ehitus.

Lithuanian investments in Estonia

The total value of Lithuanian direct investments in Estonia was 2.27 billion kroons at the end of the first half of 2009. The greatest investment of note is the purchase of the Paljassaare fish processing industry by fish manufacturer Vičiunai. Other investments of note are the owner of the largest chain of stores in Lithuania Vilniaus Prekyba entering the Estonian market (working under the Maxima brand name), Lietuvos Energija’s participation in the Estlink sea cable project, the acquisition of Tallinna Külmhoone by Lithuanian investors, and the establishment of a factory of the CD and DVD disc manufacturer Baltic Optical Disc in Estonia.

Cultural Co-operation

Cultural relations between the two nations continue to develop. The embassies in Vilnius and Tallinn are active in introducing the culture of their nations to others. Lithuanian and Estonian artists engage in close co-operation, and working contacts exist between musicians as well.

In October 2004, the rector professor of Vilnius University and the ambassador of Estonia to Lithuania signed a co-operation agreement between the university and the embassy regarding the use of the Estonian-language room at the school. The classroom was fixed up and was given a more modern interior thanks primarily to Estonian companies operating in Lithuania, who financially supported the renovation or donated their products to the class. From 2004-2008, there were 14 students studying Estonian within the Lithuanian-Estonian philology programme at Vilnius University, and upon completion they received theirs BAs. The language instruction at Vilnius University was provided by the Estonian Ministry of Education and Research and Tiina Kattel, an instructor sent by the council of the Estonian Language and Culture in the World programme.

In 2008, the embassy in Vilnius organised two concerts by the bell choir Arsis to mark the 90th anniversary of the Republic of Estonia. In April, Estonian Language Day was observed at the embassy. Representatives from the Estonian Language Institute, the Ministry of Education and Research, and the Estonian Mother Tongue Society gave presentations. Thanks to the co-operation of the embassy and the honorary consul, an exhibit of Hiiumaa paintings opened in Palanga in July. In October, the Estonian Engineers’ Choir performed for local Estonians at the embassy.

Close cultural relations between the countries have continued in 2009. As a 2009 European Capital of Culture, Vilnius has endeavoured to give a better overview of the culture of its neighbours as well. The opening event was the the exhibit “Beauties of Suburbia” by younger generation Estonian artists Kaido Ole and Marko Mäetamm, organised in co-operation by the Estonian Embassy and the gallery Vartai.
Wonderful music with classical guitars was presented by the Tallinn Guitar Quartet in various concerts in February 2009. The quartet consisted of Heiki Mätlik, Julia Kahro, Kristo Käo and Jorma Puusaag.
In May the VAT Theatre participated in the children’s and youth theatre festival “COOL” with their production of “The Misanthrope”, which had a warm reception.

To observe Victory Day, the exhibit “Estonian diplomacy—90 years” was opened in the embassy, after which young Estonian jazz musicians Piret Tatar and Andrus Rannaääre performed for the guests.
In November the Lithuanian translation of A.H. Tammsaare’s “Truth and Justice” will be unveiled at the embassy through the co-operation of the embassy and a Lithuanian publisher.