Economy / Estonia
Russia Rift
May 2007 | Ratings UpdateRelations between Estonia and Russia have reached a new low following Tallinn's decision to press ahead with the relocation of a Soviet-era war memorial known as the Bronze Soldier. The upper house of the Russian parliament in late April passed a motion urging the government to severe diplomatic relations with Estonia. Some Russian lawmakers have also called for trade sanctions. While officially the Kremlin is not in favour of such measures, many Estonians expect it to use its influence over state-owned or government-linked companies to strike back and, in this context, view as suspicious the sudden drop in rail exports
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