OREANDA-NEWS. On January 29, 2007 Prime Minister Andrus Ansip met with Chairman of the Latvian Seim Gundarz Daudze, and his accompanying delegation. The main topics of discussion were the possible developments of the two countries in the field of energy, and the ratification process of the Lisbon Treaty, reported the Official website www.valitsus.ee.

When speaking about the ratification of the Reform Treaty for the host contracts of the European Union, i.e., the Lisbon Treaty, both parties stated that the approval of the treaty is moving along at a similar pace. The Prime Minister noted that in the Estonian government, the draft Act to ratify the treaty will be discussed already at this week’s session and the government hopes that the Riigikogu can ratify the document in the spring.

Daudze noted that according to estimates the ratification of the Lisbon Treaty in Latvia will take place this year in May, when the anniversary of accession to the European Union is celebrated. In Estonia, the outlook of the people after accession to the EU has been moving towards Euro-optimism, whereas in Latvia the support for EU membership has remained at around one third through the years.

When speaking about the decisions on energy that both countries are facing, both parties noted that the diversification of the energy production portfolio is important. Prime Minister Andrus Ansip said Estonia would like to cover 25-30% of its energy need with nuclear energy in the future, and the potential participation in the establishment of the new Ignalina nuclear power station or the sixth nuclear reactor in Finland are choices that are not mutually exclusive.

Both Estonia and Latvia wish to move forward with the Ignalina project as quickly as possible. On a positive note, the Prime Minister cited the ongoing environmental impact assessment, the results of which will determine the capacity of the station that can be established at Ignalina.

Daudze stated that next to the Ignalina project, the establishment of a combined station producing electricity on the basis of coal in Kurzeme, Liepaja or Ventspils has been taken into account. A more immediate solution being discussed in Latvia is the increasing of opportunities for the production of electricity from gas. The security of provision of gas in Latvia is ensured by the underground storage facility located in Incukalns, which also holds the reserves of Eesti Gaas.

During the meeting, both parties appreciated the good cooperation between Latvia and Estonia both in the Ignalina nuclear power plant project and in economic cooperation in general. “The close communication and good cooperation between the Baltic States are not mere words, but economic reality,” said Prime Minister Andrus Ansip.

Latvia continues to be one of the top five trade partners of Estonia, being an important export market for both Estonian products and services. In 2007, the economic relations between Estonia and Latvia became even closer. According to the Bank of Estonia, as at 30 September 2007, 34,1% of all direct investments made abroad were directed to Latvia in a total sum of MEEK 19 702l. Since summer 2006, Estonia has been the number one investor for foreign investments in Latvia.