Summed up

PIRELLI ROLLS INTO THE BALTICS: One of the world's leading tire manufacturers, Pirelli, will extend its retail network to the Baltic countries and Russia. Pirelli will invest more than $1.8 million into its Baltic dealer network. The firm's Russian director, Victor Stepanov, said Oct. 8 that eight Pirelli Key Point shops will be opened in Estonia and Latvia to compete with Bridgestone, which moved into Eastern Europe this spring.

ESTONIA TO SELL TIMBER SURPLUS: Estonia's state forestry management, Riigametsa Mahandamise Keskus, will sell 2.9 million cubic meters of state forests in 2000, according to RMK's general director, Andres Onemar. The timber sale will comprise 1.2 million cubic meters of standing stock and 1.7 million cubic meters of round wood. RKM will use the services of the private sector to fell most of the timber, as state labor and machinery is sufficient to handle only 0.6 million cubic meters.

TIPPLING TO CONTINUE ON FERRY LINE: The Tallinn city government has refused to renew a liquor license for the ferry line Estline, but passengers cruising between Tallinn and Stockholm will be able to slake their thirst anyway. Estline operates two liners on the run, the Baltic Kristina and the Regina Baltic. At issue is an unpaid tax of 1.1 million kroons ($75,500). Although the license for alcohol sales on the Baltic Kristina does not expire until Feb. 9, the Regina Baltic's license is invalid, say city officials. But Andres Laar, Estline's manager, said liquor would still be available on the Baltic Kristin. Validity of the license is a matter of legal interpretation, he reportedly said, and the company will pay up its debt soon.

KEEP ON TRUCKING: Russia has granted Latvian truckers an additional 3,500 transit permits this year for transportation of cargo through Russian territory, the Latvian Transport Ministry's press service said Oct. 4. Julijs Vaituzs said the Transport Ministry began intensive negotiations with Russia earlier this year when it became clear the number of transit permits granted - 10,000 - was insufficient and would run out in August.

LATVIAN AGRICULTURE TO HARVEST EUROS: The European Union's SAPARD fund will provide Latvia 21.8 million euros ($23.44 million) annually from the year 2000 through 2006 to implement pre-accession policy in agriculture and for rural development. In return, Latvia's government will have to allocate 4.42 million lats ($7.62 million) in 2000 to the fund as cofinancing for the program. The money is to come from resources earmarked for agriculture subsidies. Beginning in 2000 Latvia will also receive money for environmental and transportation projects.

OIL!: Latvia's Economics Ministry is drafting documents to tender licenses in the first quarter of 2000 to search for and extract oil. Maija Vimba of the ministry said that the project targets oil fields not in areas disputed with Lithuania, so research can be started at any time. Several oil deposits near the Baltic Sea near the border have generated disputes over ownership. Vimba said that the deposits have sparked interest in research among several smaller U.S. companies and one Russian company.

LITHUANIA RAISES CAPITAL FOR OIL INVESTOR:

The Lithuanian government will have to borrow $353 million to cover the working capital shortfall in the country's oil concern Mazeikiu Nafta (Mazeikiai Oil), according to press reports. Lithuania's top officials and the president of Williams International, the U.S. company taking a 33 percent strategic stake in Mazeikiai Oil, reportedly agreed on that amount Oct. 6. Williams' Lithuania spokesman Darius Silas and the Lithuanian Finance Ministry refused to confirm the amount. Ricardas Sartatavicius, consultant to the Finance Ministry, said Williams would help the government to raise a 75 million dollar loan this year which will be immediately loaned to Mazeikiai Oil. The deal will be inked by Oct. 29 if the capital shortfall is resolved.

OIL PRODUCER AND FUEL RETAILER FOR SALE: The Lithuanian State Property Fund is set to privatize the sale of Geonafta, operator of 11 oil wells, and Ventus Nafta, owner of 20 filling stations, by the end of the year. The state holds 90.3 percent of Ventus Nafta's share capital of 69.1 million litas ($17.27 million). Geonafta has a registered share capital of 24.3 million litas of which the state holds about 81 percent. The privatization agency was expected to OK the sale Oct. 13.

SHIPPING FLEET ON THE BLOCK: Lithuania's privatization agency hopes to sell 81 percent of shares in Klaipedos Transporto Laivynas to a strategic investor by the end of 1999. Face value of the block is 105.8 million litas with the registered share capital at 130.9 million litas ($26.45 million). Liabilities stand at 29.08 million litas. It turned a profit of about 20 million litas in 1998. The fleet of 16 ships will be privatized by public tender.