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Estonia, like the rest of the European Union, considers Azerbaijan a partner with great potential and is seeking to boost both economic and political relations with the country, President Toomas Hendrik Ilves said in a meeting with his counterpart Ilham Aliyev in Baku on Tuesday.
At the meeting, President Ilves, who is the first Estonian leader to visit Azerbaijan in the history of the two countries, focused on the future of relations between the 27-member bloc and the fast-growing South Caucasus republic, according to the Estonian president`s website.
"The Caspian Sea region, and Azerbaijan, as one of the leading countries in the area, has an important role to play in increasing the energy security of the European Union. During the recent gas dispute between Russia and Ukraine, it again became clear how important the diversity of energy [supply] routes is for the EU," said Ilves.
"This is why we greatly appreciate Azerbaijan`s readiness to participate in the implementation of the South Energy Corridor projects-the NABUCCO gas pipeline and the Odessa-Brody-Plock oil pipeline," he said.
The NABUCCO project, worth 8 billion euros, is designed to deliver Azerbaijani and Turkmen gas to European markets through a 3,300-kilometer pipeline traveling through Azerbaijan and Turkey to Romania, Bulgaria, Hungary and Austria. Six shareholders - German RWЕ, Turkish Botas company, Romanian Transgas, Bulgarian Bulgargas, Austrian OMV, and Hungarian MOL - hold equal stakes in the project consortium. So far, only Azerbaijan has agreed to transport its gas via NABUCCO. The conduit is to be commissioned in 2013.
President Aliyev stressed that, in the case of the NABUCCO gas pipeline, the activities and responsibilities of each of the parties must be clarified.
President Ilves encouraged Azerbaijan to make extensive use of the opportunities provided by the Eastern Partnership initiative prepared in the European Commission.
"The EU is convinced that the success of our eastern partners depends on the readiness of each country and their will to truly converge with the Community and its values," President Ilves emphasized. "This means democracy, the rule of law, respect for human rights, as well as increasing the pace of justice reforms and administrative capabilities."
The Eastern Partnership program, initiated by Poland and Sweden, envisions cooperation between the EU and East European countries, including Azerbaijan, Georgia, Armenia, Ukraine, Moldova, and Belarus. Agreements to be signed with the countries participating in the program envision creating free trade areas. The ex-Soviet states are also required to adopt a set of EU regulations, along with simplifying visa regulations. Furthermore, such key issues as democracy, respect for human rights and the rule of law should be top priorities for the signatories. The implementation of joint projects on student exchange, environmental protection and energy supplies is planned as well.
According to President Ilves, Estonia does not presume to be a teacher for any country or to teach it how to shape its future.
"However, if a country declares its wish to intensify relations with the EU, it is natural that Estonia, as a member of the union, can provide recommendations on how to successfully achieve Euro-integration," he said.
The Estonian head of state also spoke about the freedom of the press and the freedom for journalists and the media to operate, which are inherent to and important for Europe.
Ilves also stressed the importance of closer economic ties between Azerbaijan and Estonia, and cited information technologies as an example of a field where close and businesslike ties could be developed between the entrepreneurs of the two countries.
"Estonia and Estonian entrepreneurs are interested in Azerbaijan and its developing economy as an investment environment as well as a market," President Ilves said. "We want our investors to have a secure entrepreneurial environment, characterized by a functioning justice system, transparency, and the lack of excessive bureaucratic obstacles."
Speaking about the Armenia-Azerbaijan Upper (Nagorno) Garabagh conflict, Ilves confirmed the necessity of respecting the principle of territorial integrity and said the conflict poses a risk for the security and stability of the entire region, and inhibits the economic, political and social development of the involved parties.
"Estonia is thoroughly convinced that permanent solutions for such conflicts can only be achieved at the negotiating table by diplomats and politicians. I am glad that the Azerbaijani leadership is of the same opinion."
Presidents Aliyev and Ilves also looked into ways of expanding cooperation between Azerbaijan and NATO. The Estonian leader acknowledged Azerbaijan`s participation in the missions led by the alliance in Kosovo and Afghanistan, as well as in the international coalition in Iraq.
"Estonia feels that respect for common values, flexible cooperation and dialogue based on the needs of security policy are important to the development of NATO partnership relations," the Estonian president said.
A declaration on cooperation was signed in conclusion of talks between the two presidents.
Further, Presidents Aliyev and Ilves participated at the opening of a joint ICT forum in Baku.
"The 21st century has served up challenges along with risks. One challenge is to make extensive use of the possibilities provided by modern information and communications technology for the benefit of our people," Ilves told the opening ceremony.
According to the president, both countries will benefit from cooperation between Estonian and Azerbaijani entrepreneurs.
"This is the way for Estonia and Azerbaijan to reach their hands out to each other in order to become reliable partners. We both have the goal of being modern countries that are worthy of the 21st century," Ilves said.

`Important oil producer`
Azerbaijan is an important oil producer in the Caspian region and its significance as a gas producer is growing, President Ilves said at a meeting with Prime Minister Artur Rasizada on the same day.
"At the same time, it is an important energy partner for the EU, with 90 percent of its oil and gas exports going to the Community states," he said.
The Estonian president went on to say that Azerbaijan "has demonstrated impressive economic growth, and the increase in self-confidence based thereon is understandable."
Since oil and gas comprise 90 percent of the Azerbaijan`s exports, the discussions included opportunities for diversifying the economy, by using the country`s oil and gas revenues for easing poverty, regional development and developing the rest of the economy.
President Ilves emphasized that Estonian entrepreneurs are interested in investing in Azerbaijan, in both the information and communications fields as well as in real estate and infrastructure development projects.
"Currently, Azerbaijan`s volume of trade places it 54th among Estonia`s trading partners and this is clearly too modest a position," Ilves said.
To date, Estonia has made direct investments totaling $26.5 million in Azerbaijan, the largest of which- almost $22.1 million-is a real estate project planned by 24 private Estonian investors near Baku.
Also active in Azerbaijan are Estonian ICT companies that provide e-state applications such as X-Road, e-police, e-tax board, etc.

Protest ahead of visit
A group of Baku residents staged a protest just hours ahead of the Estonian president`s visit against the arrest of two Azerbaijani businessmen in the Baltic state.
About 30 people taking part in the action demanded that Ahliman Zeynalov and Mirza Jamalov be released, charging that the two entrepreneurs had been illegally held in detention in Estonia for over a year.
Jamalov`s mother, Tebiet Jamalova, said during the protest that her son was engaged in restaurant business in this country. She claimed that no information is available concerning the reasons for his apprehension. Jamalova pledged to launch a hunger strike and appeal to the European Court of Human Rights if her son is not freed.
Zeynalov`s defense lawyer, Javanshir Suleymanov, said his client had been arrested on charges of drug sales a year ago, dismissing the charge as unfounded. The indictment said he had brought the narcotics to Estonia from the Netherlands. Zeynalov`s trial has been scheduled for April, Suleymanov added.
The protest was dispersed by the police due to its being unsanctioned.