According to the national Statistics Department, Estonia's economy grew 7.3%, year-on-year, in the second quarter of 2007, compared to 9.8% in the first quarter, Aripàev said. The decline was especially evident in the manufacturing industry, the wholesale trade sector, transport and logistics.
The paper quoted Tiit Vahi, Estonia's former prime minister and now owner of the Silmet plant, as saying the downturn was predictable, since the economy was affected by a worsening of relations with Russia.
"Russia has used administrative measures, scaling down rail service and limiting exports to Estonia and imports from Estonia," he said.
His view was shared by Tiit Tammsaar, head of Baltic Panel Group, who said his company, which produces plywood, has been experiencing a shortage of raw materials from Russia.
State-controlled railway Eesti Raudtee said earlier the volume of rail shipments fell 35% in July, year-on-year, to 2.5 million metric tons, the volume of oil shipments in July fell 34%, year-on-year, to 1.55 million metric tons, while coal shipments declined 60% in July, year-on-year.
Eesti Raudtee laid off 200 employees due to a fall in the volume of freight traffic to Russia.
Postimees, an influential Estonian daily, said last month the government spent some 70 million Kroons ($6.1 million) to remove the Bronze Soldier monument from central Tallinn and to repair the damage caused by the disturbances that followed.
Estonian authorities exhumed the remains of 12 Soviet soldiers April 26 and moved the monument to a military cemetery on Tallinn's outskirts. The move provoked mass protests in Tallinn and other Estonian cities, during which over 1,000 people were detained, dozens injured and a Russian national killed.
The Estonian Interior Ministry spent about 31 million Kroons ($2.7 million) on overtime compensations for policemen, their food, transportation and uniforms.
The Finance Ministry will pay private owners and local administration between 20 and 25 million Kroons ($1.8-2.2 million) in compensation for damage inflicted by the mass disturbances.
Moscow Mayor Yury Luzhkov and the Leningrad Region legislature previously urged all government institutions and government-run organizations to freeze financial and economic transactions with Estonia, and to boycott Estonian goods.
