Estonia
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Estonia (Estonian Eesti) is republic in northeastern Europe, bounded on the north by the Gulf of Finland, on the east by Russia, on the south by Latvia, and on the west by the Baltic Sea. It was formerly the Estonian Soviet Socialist Republic of the Union of Soviet Socialist Republics (USSR). Estonia has more than 1500 islands; the largest, Saaremaa and Hiiumaa, separate the Gulf of Riga from the Baltic. The area of the country is about 45,100 sq. km (about 17,400 sq. mi). Tallinn, the capital and largest city, is the country's chief port.

Land and Resources
Estonia is a low-lying plain with numerous streams and lakes. The average elevation is about 50 m (about 165 ft), with the highest point in the republic reaching only 318 m (about 1043 ft). Wetlands cover more than 20 percent of the country's territory. Lakes and reservoirs cover an additional 5 percent, with the two largest lakes, Lake Peipus on the eastern border and Võrtsjärv in the south central part of the country, accounting for nearly four fifths of the total lake surface area. The climate is moderated by marine influences, although more continental conditions exist in inland portions of the republic. Precipitation is moderate, with mean annual rainfall ranging from 500 to 700 mm (19.5 to 27.3 in). Elongated hills arrayed from north to south are evidence of former glaciation, as are the glacial boulders found in the south and southeast. The mainland has a coastline about 1160 km (about 720 mi) long. About one fourth of the land is forested, mainly with pine, birch, aspen, and fir. Elk, deer, and wild boar are common wildlife. Several species have been protected by legislation because of their small numbers, including the beaver, red deer, and willow grouse.

Population
The population of Estonia, estimated at 1,571,000 in 1995, is the smallest of any republic of the former USSR. About 62 percent of the people are Estonians. They are ethnically and linguistically close to the Finns, speaking a Finno-Ugric language. Russians are the largest minority with 30 percent of the total population. Other minorities include Ukrainians, Belorussians, Finns, Jews, and Latvians. Before Soviet annexation in 1940, Russians comprised only 8.5 percent of the total population. They arrived in Estonia during the period of large-scale industrialization after World War II (1939-1945). Russian employment is confined largely to the industrial sector in Estonia. Lutheranism is the traditional Estonian religion. Other forms of Christianity are also practiced in the country.
In 1992 laws were passed that greatly restricted Estonian citizenship. According to the laws, which are based on a 1939 law, all residents who lived in Estonia before 1940 and their descendants are automatically granted citizenship, regardless of ethnicity. Other inhabitants are required to meet a residency requirement and pass a proficiency exam in Estonian, although language restrictions may be waived for the aged and disabled. In 1995 the residency requirement was extended from two years to five years.
Estonia is highly urbanized. About 72 percent of the population lives in urban areas, with nearly one third of the total population residing in Tallinn. Other important cities include Tartu and Pärnu. Russians reside in urban areas, especially in the east. Narva, a city in the northeastern corner of the country, is inhabited almost exclusively by Russians.

Economy
In 1994 Estonia had an estimated gross domestic product (GDP) of $4.6 billion. Industry accounted for more than one third of both GDP and total employment in 1993. Engineering and metalworking are the chief industries, followed in importance by oil shale mining. The shale processing industry produces artificial gas and chemicals; oil shale is also used to generate electricity. Other manufactures include cement, textiles (cotton, linen, and wool), automobile components, and leather goods. Forestry provides material for the paper, lumber, plywood, and furniture industries.
Industrial output is highly dependent on a small number of large-scale enterprises, most of which are located in the north. One fifth of all factories accounted for two thirds of total industrial production until 1992. That year the disruption of trade ties with the former Soviet republics resulted in a 30 percent decline in Estonia's industrial production. Smuggling and reselling underpriced raw materials from Russia has become widespread. Agriculture and forestry together account for 10 percent of total GDP and about one eighth of total employment. Livestock raising and dairy farming are the chief agricultural activities. Oats, potatoes, and flax are the leading crops. Estonia's service sector provides more than half of its GDP. Western tourism and investment have prompted dramatic growth in services since 1992.
In the early 1990s Estonian economic independence was challenged by energy price demands from Russia. Estonia relies on Russia to fill about half of its energy needs, a smaller proportion than either of the two other Baltic states, Latvia and Lithuania. Nevertheless, the Estonian economy suffered greatly from Russian demands that fossil fuel shipments be paid for at world prices, and several large factories in Estonia were forced to close because of fuel shortages. Estonia followed Russia's example and required hard currency payment on electricity deliveries to Latvia and Lithuania beginning in 1992.
In 1992 Estonia became the first former Soviet republic to issue its own currency, the kroon (EEK) (8 EEK equal 1 DEM). In 1992 Estonia became a member of the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (World Bank), and the European Bank for Reconstruction and Development (EBRD). Estonia became an associate member of the European Union (EU) in mid 1995.

Government
The present republic of Estonia is a legal successor to the independent republic of the same name that existed from 1918 to 1940. A new constitution, approved by referendum in 1992, allows for a unicameral national legislative body, the Riigikogu. The 101 members of the Riigikogu are elected by direct popular vote to four-year terms. The head of state, the president, is elected by parliament and is granted limited executive authority. The country is not a member of the Commonwealth of Independent States (CIS), which is comprised of most of the other former Soviet republics.