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Relations Between Latvia and Finland [29 Aug 2008]
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The traditionally friendly and close relations between Latvia and Finland are based on common interests to ensure stability, security and welfare in the Baltic Sea Region and Europe as a whole. Co-operation between both countries is intensive: political dialogue between senior state officials takes place on a regular basis and practical co-operation between sector ministries, local governments and non-government organisations is stable and successful. Mutual contacts between the nations are becoming ever more extensive.


History of Diplomatic Relations 

Finland recognised Latvia's independence de iure on 26 January 1921. Diplomatic relations between the two countries were re-established on 29 August 1991. The Finnish Embassy in Riga was opened on 1 October 1991. Since 28 September 2004, the Ambassador of Finland to Latvia is Pekka Wuoristo. The Ambassador Extraordinary and Plenipotentiary of Latvia to Finland, since 25 August 2005, is Einars Semanis.

Latvia currently has four Honorary Consuls in Finland: Sture Carlson in the Ã…land Islands, Tapio Aho in Satakuntaa, Kai Holmberg in Kymmenlaakso and Timo Levo Oulu.


Latvia-Finland Bilateral Co-operation

Following Latvia's accession to EU, co-operation with Finland continues, primarily within the context of Baltic Sea Region co-operation programmes, EU initiatives and the Northern Dimension, and also at the sector level, based on already established contacts.


Home Affairs and Justice

On 27 June 1996 an agreement was signed between the Government of the Republic of Latvia and the Government of the Republic of Finland on co-operation in crime prevention. The State Police has developed intensive co-operation with similar organisations in Finland to combat trafficking in drugs and psychotropic substances, credit card forgery and money laundering. With support from Finland, Latvian policemen receive training under a programme for police peace-keeping forces, held annually in Tampere.

Staff of the State Police Dog-Handling Centre are participants in the Baltic Sea States' Co-operation Programme directed by Finland and in the framework of which training of dog handling experts and instructors takes place.

Since 1996 Latvia's State Border Guard has had a successful and mutually beneficial co-operation with the Finnish Border Guard.

The Office of Citizenship and Migration Affairs, the State Firefighting and Rescue Service, the Prison Administration, the State Forensic Science Bureau and the State Land Service are also co-operating with their counterparts in Finland.

 

Defence

On 9 June 2001, Latvia and Finland signed an agreement on defence co-operation. Ministries of Defence of both countries have held consultations on such issues as crisis management and mobilisation, co-operation in the area of defence industry, and procurement policy.  It is anticipated that future co-operation between Latvia and Finland will develop in the following areas: consultations and exchange of opinion on the Common European Security and Defence Policy, NATO, environmental protection, civil/military co-operation and mobilisation issues.


Environmental Protection and Regional Development

The Investment Department of the Ministry of Environment co-operates with the Ministry of Environment of Finland within the framework of the Technical Assistance Agreement regarding assistance to the Ministry of Environment in the implementation of projects co-financed by the EU Cohesion Fund and Structural Funds. Due to Finland's support, within the framework of the said agreement more than 70 specialists from the Ministry of Environment and other institutions have been on experience exchange visits to Finland and have acquainted themselves on site with Finnish experience in the implementation of the EU requirements with respect to water management and waste management. In addition regular training programmes are provided for the staff of the Ministry of Environment who are involved in planning and implementation of projects co-financed by EU funds.

Regional co-operation between Latvia and Finland takes place also as part of the VASAB ('Visions and Strategies around the Baltic Sea' - co-operation of ministers of the Baltic Sea Region countries responsible for spatial planning), as well as within INTERREG IIIC (Latvia and Finland have participated in 12 joint projects) and the Baltic Sea Region INTERREG IIIB Programme (63 joint projects).


Culture

Co-operation with Finland covers a broad range of cultural areas: literature, arts, music, archives, cinema, museums and libraries. Several cultural and educational establishments as, e.g. Liepaja Arts School, Riga Dome Choir School, Valmiera Secondary School of Arts, and Riga Design and Arts School co-operate with their Finnish counterparts. Similarly, student and teacher exchange with Finland takes place in the tertiary education establishments of Latvia: the Latvian Academy of Culture and Jazeps Vitols Latvian Academy of Music.

Since 1999, the Rozentals Society headed by philosopher Dr. Marjo Mela is operating in Helsinki.  In turn, the Latvia-Finland Society established in 1998, at the initiative of Anna Zigure and the Rozentals family, is operating in Latvia. It is headed by Atis Rozentals.


Education

Latvia's co-operation with Finland in education and science is regulated by an agreement between the Governments of Latvia and Finland on co-operation in culture, education and science, signed on 10 September 1996.

From a historical perspective, it is co-operation with Finnish scientists that was first to be considered and documented in 1991 after the restoration of Latvia's independence. At the moment two documents signed by the Latvian Academy of Sciences with Finnish research institutions are in force: a memorandum of understanding between the Academy of Finland, the Latvian Council of Science and the Latvian Academy of Sciences (LAS), and a research co-operation agreement between the LAS and the Finnish Academy of Sciences and Letters.


Latvian and Finnish tertiary education institutions actively co-operate within the framework of EU educational and scientific projects. Nearly all of Latvia's public universities and a number of universities established by private persons have co-operation partners in Finland. A number of schools have signed mutual co-operation agreements with Finnish universities of similar nature.

For instance, the University of Latvia has concluded bilateral co-operation agreements with three Finnish universities – of Helsinki, Turku and Joensuu. The Faculty of Modern Languages of the University of Latvia offers a Finno-Ugrian Studies programme. The University of Helsinki teaches Latvian and offers a course of lectures on the culture and history of Latvia.


In the field of education, Finland has provided significant support for the enhancement of the material facilities of the Department of Finno-Ugrian and Nordic Languages at the University of Latvia and the Nordic Gymnasium, as well as for the secondment of Finnish teaching staff to the University of Latvia. Considerable assistance is rendered for the preservation of the Liv language and culture, for Liv language classes at the Riga Estonian Secondary School, and the revitalisation/regeneration of the Liv Coast. The Government of Finland provides methodological and financial support for the implementation of the national programme for the acquisition of the state language.


Welfare, Health

Co-operation with Finnish partners has been developed by institutions such as the National Agency for Health Promotion, the Pauls Stradins Clinical University Hospital, Riga Stradins University (the Chair of Anaesthesiology and Reanimatology, the Institute of Anatomy and Anthropology, the Faculty of Dentistry), the Narcology State Agency, the Centre of Emergency and Disaster Medicine, the State Agency of Sports Medicine, the State Blood Donor Centre, the State Medical Genetics Centre, the children's psychoneurological hospital Ainazi and the AIDS prevention centre.


Local Governments

Multi-faceted co-operation between local authorities of Latvia and Finland is promoted with the support of EU regional development and co-operation programmes (INTERREG). Co-operation agreements have been signed between individual authorities of districts, towns and rural municipalities, resulting in active exchange of experience and information. Co-operation is ongoing in areas such as education, sport, culture, tourism, entrepreneurship, ecology, regional development, social and health care, NGO issues. 

The oldest sister city of Riga is Pori (since 1964). Pori has become a long-term partner in educational, cultural and economic projects, and co-operation also continues in the development of new projects. 

 

Economic Relations

Economic co-operation between Latvia and Finland is successful. Finland is a significant foreign trade partner for Latvia and trade volumes are increasing year on year.


Trade statistics

(according to data of the Central Statistical Bureau of the Republic of Latvia)


First half of 2008:

For the first half of 2008, Latvia had a negative trade balance with Finland:

-141,685,212 EUR. The balance for 2007 was also negative, at – 333,077,911 EUR.

  • Exports:

1. Lithuania – 468, 760,197 EUR or 16.24 % of total exports from Latvia

2. Estonia – 362,588,017 EUR or 12.56 %

3. Russia –312,967,084 EUR or 10.84 %

4. Germany – 250,705,977 EUR or 8.68 %

5. Sweden – 209,495,056 EUR or 7,26 %

âÀ¦.

9. Finland – 87,651,391 EUR or 3.04%

  • Imports:

1. Lithuania – 744,722,788 EUR or 25.80 % of total imports to Latvia

2. Germany – 636,044,174 EUR or 22.03 %

3. Russia – 525,418,285 EUR or 18.20 %

4. Estonia – 335,546,838 EUR or 11.62 %

5. Poland – 312,417,009 EUR or 10.82%

âÀ¦.

6. Finland – 229,336,603 EUR or 7,94%

 

 Main exports from Finland by type of goods, 2008 Q2, million EUR

Type of goods

Million EUR

% of total exports

Total

87.65

100%

Base metals and their products:

- ferrous waste and scrap; scrap ingots of iron or steel(20%)

- bars and rods, of iron or non-alloy steel(16%)

28.57

32.6

Wood and wood products: 

- wood in the rough(53%)

- plywood, veneered panel and similar laminated wood(18%)

25.47

29.05

Vegetable products:

- cereal flours (excl. wheat) (44%)

7.25

8.3

Machinery and mechanical appliances; electrical equipment:

–lifting, handling, loading or unloading machinery (lifts, escalators, conveyors, etc.) 18%

5.69

6.5

Miscellaneous manufactured goods

5.01

5.7

Textiles and textile articles

2.90

3.3


Main imports from Finland by type of goods in 2008 Q2, million EUR

Type of goods

million EUR

% of total imports

Total

229.34

100%

Machinery and mechanical appliances; electrical equipment:

- telephone and fax (16%)

- automatic data processing machines (9,5%)

71.33

31.1

Motor vehicles:

- motor cars and other motor vehicles (61%)

45.98

20.0

Products of chemical and allied industries:

- photographic plates, film, x-ray film (11,4%)

18.17

7.9

Pulpwood, paper and cardboard

17.11

7.5

Plastics and articles of plastic; rubber and articles of rubber

16.58

7.2

Base metals and articles of base metals

12.77

5.6

Textiles and textile articles

9.97

4.3

Articles of stone, gypsum, cement, glass and ceramics

9.52

4.1


Trade dynamics between Latvia and Finland for the period of 2002-2007, million EUR

Year

Exports

imports

Total turnover

Trade balance

2002

56.2

343.3

3995

-287.1

2003

68.6

342.1

410.7

-273.5

2004

78.0

353.2

431.2

-275.2

2005

142.7

401.0

543.7

-258.3

2006

130.7

478.1

608.8

-347.4

2007

172.3

510.4

682.7

-338.1

2008 Q2

87.65

229.34

316.99

-141.7

 

Trade dynamics between Latvia and Finland for the period of 2002-2007, million EUR

 

 

Finland's direct investment in Latvia

Finland is the fifth largest investor country in Latvia. At the end of the first quarter of 2008, Finnish direct investments amounted to 336.9 million LVL (source: The Bank of Latvia). The major part of investments has been made in the wholesale and retail trade sector (39%).

Balance of foreign direct investment in Latvia (positions) at the end of 1st quarter of 2008:


As of 15 April 2008, 365 Finnish - Latvian joint companies were listed with the Register of Enterprises of the Republic of Latvia (9th place). The ten largest Finnish investors in equity of companies registered in Latvia, in million LVL, are:


  1. YIT Construction Ltd. (100% of SIA "YIT celtniecÄ«ba") – 9.43
  2. maxit Oy (100% of SIA "Maxit") – 7.00
  3. Fazer Bakeries (100% of SIA "Fazer maiznÄ«cas") – 4.68
  4. Maatalouskesko Oy (100% of "Kesko Agro Latvija") - 4.63
  5. Stora Enso Oyj (100% of SIA "Stora Enso mežs") - 4.00
  6. Rautakirja Oy (50% of "Narvesen Baltija" and 37% of "Stockmann Centrs") - 3.80
  7. Consolis Oy Ab (100% of SIA "Consolis Latvija", construction) - 3.13
  8. Metsaliitto Cooperative (100% of SIA "Metsaliitto Latvia", forestry) – 2,78
  9. Ramirent Europe Oy (100% of SIA "Ramiteh", 100% of SIA "Ramirent") - 2.63
  10. OY Rudus Ab (100% SIA "Rudus") – 2,51

 

Important mutual visits during recent years

Visits of Latvian officials to Finland:

14-16 July 2008

Working visit to Finland (Pori) by President Valdis Zatlers

6-7 April 2008

Working visit to Finland (Ruka) by Prime Ministre Ivars Godmanis

22 August 2007

Working visit by President Valdis Zatlers of Latvia

24-26 April 2006

State visit by the President of Latvia Vaira Vike-Freiberga

30 June 2005

Working visit by the Minister of Foreign Affairs of the Republic of Latvia, Artis Pabriks

23-24 April 2005

Visit by the President of Latvia, Vaira Vike – Freiberga (to participate at the conference on Europe and Globalisation

8-10 March 2005

Working visit by Prime Minister Kalvitis of the Republic of Latvia

1 April 2004

Working visit by the Minister of Foreign Affairs of Latvia, Rihards Piks

1-2 June 2003

Working visit by President Vaira Vike-Freiberga (to address the conference Stop Child Trafficking: Modern-Day Slavery)

14 March 2003

Working visit by the Speaker of the Saeima, Ingrida Udre

29 November 2002

Working visit by the Minister of Foreign Affairs, Ms Sandra Kalniete

26-27 September 2002

Visit t by the President of Latvia, Vaira Vike-Freiberga (to participate in a business women's forum)

21 March 2002

Working visit by the President of Latvia, Vaira Vike-Freiberga (to deliver a lecture at University of Helsinki)

12 October 2001

Working visit by the Minister of Foreign Affairs, Mr Indulis Berzins (informative presentation by Latvia on EU-related matters)

19-21 February 2001

Official visit, by the Speaker of the Saeima, Mr Janis Straume

30 November 2000

Working visit by the President of Latvia, Vaira Vike-Freiberga


Visits by Finnish officials to Latvia:

12- 13 July 2008

Informal visit to Latvia by President Tarja Halonen, to attend a Song and Dance Celebration concert

3-4 June 2008

Visit by Prime Minister Matti Vanhanen for the CBSS Summit

4 September 2007

Official visit by Prime Minister Matti Vanhanen

17-18 April 2007

Working visit by the Minister of Foreign Affairs of Finland, Erki Tuomioja

29-30 August 2006

Official visit by the Chairman of the Finnish Parliament, Paavo Lipponen

9-11 May 2006

Visit by the Latvia - Finland Parliamentary co-operation group of the Parliament of Finland

11 April 2006

Working visit by the Minister of Foreign Affairs of Finland, Erki Tuomioja

18-20 May 2004

Visit by the delegation of the Eduskunta (the Parliament of Finland) Foreign Affairs Committee

29 April 2004

Working visit by Finland' s Minister for Foreign Trade and Development, Paula Lehtomäki

15 September 2003

Working visit by the President of Finland, Tarja Halonen

29 August 2003

Working visit by the Prime Minister of Finland, Matti Vanhanen

9-10 May 2001

State visit by the President of Finland, Tarja Halonen

4-5 February 2001

Working visit by the Prime Minister of Finland, Paavo Lipponen

27-29 September 2000

Official visit by the Speaker of the Parliament of Finland, Riitta Uosukainen

12 June 2000

Working visit by the Minister of Foreign Affairs of Finland, Erki Tuomioja


Links to Finland

General information on Finland http://www.virtual.finland.fi

President: http://www.president.fi

Parliament: http://www.eduskunta.fi

Government: http://www.governmet.fi

Ministry of Foreign Affairs: http://www.formin.fi

Embassy of Finland in Riga: http://www.finland.lv

Tourism information centre: http://www.mek.fi


K.Valdemara street 3 +371 67016201