Identifier
Created
Classification
Origin
07TALLINN27
2007-01-16 06:09:00
UNCLASSIFIED
Embassy Tallinn
Cable title:
ESTONIA: BUYBACK OF THE RAILWAY COMPLETE
how-toVZCZCXYZ0001 RR RUEHWEB DE RUEHTL #0027 0160609 ZNR UUUUU ZZH R 160609Z JAN 07 FM AMEMBASSY TALLINN TO RUEHC/SECSTATE WASHDC 9428 INFO RUEHWR/AMEMBASSY WARSAW 0833 RUEHHE/AMEMBASSY HELSINKI 5147 RUEHRA/AMEMBASSY RIGA 2840 RUEHVL/AMEMBASSY VILNIUS 6601
UNCLAS TALLINN 000027
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ETRD PREL EINV EN
SUBJECT: ESTONIA: BUYBACK OF THE RAILWAY COMPLETE
REF: 06 Tallinn 1014
UNCLAS TALLINN 000027
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ETRD PREL EINV EN
SUBJECT: ESTONIA: BUYBACK OF THE RAILWAY COMPLETE
REF: 06 Tallinn 1014
1. (U) The buyback of the Estonian Railway by the
Estonian government was completed on January 9, 2007.
Representatives of the GOE and Baltic Rail Services
(BRS) signed documents under which the state again
became the owner of 100 percent of the shares of Eesti
Raudtee (Estonian Railways). The state paid USD 194
million for BRS' 66 percent majority shares. The two
sides also signed an agreement to abandon the claims
each has in cases currently pending in international
arbitration courts.
2. (U) An entirely new Supervisory Council was
appointed according to the GOE's coalition agreement,
including two representatives each from the People's
Union Party, Reform and Center parties. The new
Council then appointed Eva Vanamb, head of the Ministry
of Economy and Communication's Legal Department, as its
chairwoman. At the Council's first meeting on January
9, it appointed Kaido Simmermann to be CEO and chairman
of the railway's separate management board, which
controls actual daily operations. Mr. Simmermann has
been working for the railway since 1995 as Director of
Infrastructure. The GOE has announced that it plans
roughly USD 68 million in infrastructure investments
into the railway in 2007. To that end, Economic
Affairs and Communications Minister Edgar Savisaar and
others have suggested that once the railway is back in
state hands, EU structural funds could also be used to
fund upgrades.
US Role Down, but Not Out
--------------
3. (U) While BRS is no longer a U.S. investment, the
chance for a future role for U.S. companies in this
sector remains. Edward Burkhardt, chairman of the
former railway majority owner BRS, reportedly plans to
continue his involvement in the region by seeking
investors and working with the EU on a Rail Baltica
project to link the freight lines of Finland, the
Baltic states, and Poland.
GOLDSTEIN
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: ETRD PREL EINV EN
SUBJECT: ESTONIA: BUYBACK OF THE RAILWAY COMPLETE
REF: 06 Tallinn 1014
1. (U) The buyback of the Estonian Railway by the
Estonian government was completed on January 9, 2007.
Representatives of the GOE and Baltic Rail Services
(BRS) signed documents under which the state again
became the owner of 100 percent of the shares of Eesti
Raudtee (Estonian Railways). The state paid USD 194
million for BRS' 66 percent majority shares. The two
sides also signed an agreement to abandon the claims
each has in cases currently pending in international
arbitration courts.
2. (U) An entirely new Supervisory Council was
appointed according to the GOE's coalition agreement,
including two representatives each from the People's
Union Party, Reform and Center parties. The new
Council then appointed Eva Vanamb, head of the Ministry
of Economy and Communication's Legal Department, as its
chairwoman. At the Council's first meeting on January
9, it appointed Kaido Simmermann to be CEO and chairman
of the railway's separate management board, which
controls actual daily operations. Mr. Simmermann has
been working for the railway since 1995 as Director of
Infrastructure. The GOE has announced that it plans
roughly USD 68 million in infrastructure investments
into the railway in 2007. To that end, Economic
Affairs and Communications Minister Edgar Savisaar and
others have suggested that once the railway is back in
state hands, EU structural funds could also be used to
fund upgrades.
US Role Down, but Not Out
--------------
3. (U) While BRS is no longer a U.S. investment, the
chance for a future role for U.S. companies in this
sector remains. Edward Burkhardt, chairman of the
former railway majority owner BRS, reportedly plans to
continue his involvement in the region by seeking
investors and working with the EU on a Rail Baltica
project to link the freight lines of Finland, the
Baltic states, and Poland.
GOLDSTEIN