Summary

The economic condition of the Estonian state does not allow to provide direct support to shipping companies. Nevertheless, it is in the state’s power to create for ships sailing under the Estonian flag as favourable conditions as for ships flying the flags of major sea states. Also, the Republic of Estonia should provide effective protection for Estonian ship owners and seafarers abroad and create conditions for shipping companies to conclude shipping contracts subject to the jurisdiction of Estonia.
The author highlights the most acute problems from the viewpoint of Estonian law of the sea. As a shortcoming, the author points out that Estonia is not party to the 1994 UN Convention on the Law of the Seas, accession to which is also a precondition for joining the European Union. Another problem raised by the author is the low level of liability of ship owners which is not favourable for subjection of contracts to the jurisdiction of Estonia. Further, issues concerning seizure of vessels are not regulated sufficiently. It is a serious problem for Estonia that it not party to the 1968 Brussels and the 1988 Lugano Conventions pertaining to the recognition and enforcement of foreign judgments. All this accounts for the loss of interest of shippers in the jurisdiction of Estonia. The Republic of Estonia should make efforts to improve the situation.