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Estonian PM faces backlash over spouse’s Russian business ties

Kallas denies conflict of interest

Estonian Prime Minister Kaja Kallas has defended herself against accusations of having a conflict of interest due to her spouse’s alleged Russian business links. Kallas, who has been a vocal supporter of Ukraine and a critic of the Kremlin, said the controversy was a “witch-hunt” by her political opponents who are calling for her resignation.

Kallas’s husband, Arvo Hallik, is a part-owner of Stark Logistics, a company that continued to do business in Russia after the full-scale invasion of Ukraine in February 2022. The couple claim that the business was helping another Estonian company, Metaprint, to wrap up trade in Russia. However, local media reported that Metaprint sold €17m worth of goods to Russia between February and November 2022.

Estonian PM faces backlash over spouse’s Russian business ties

President and opposition demand accountability

The scandal has damaged Kallas’s standing and credibility, both domestically and internationally. The Estonian president, Alar Karis, has publicly rebuked the prime minister for allowing the scandal to undermine trust in politics and put the “credibility of the Estonian state into question”. In an address at the opening of parliament season on Monday, Karis said democracy “does not end when a majority is received in parliamentary elections”.

The leader of the opposition party Isamaa, Urmas Reinsalu, has also called for Kallas to step down, saying she is a “security threat” and a “moral hazard”. Reinsalu said Kallas’s behaviour was unprecedented and unacceptable, especially given Estonia’s fervent backing of Ukraine’s fight against Russia and its advocacy of sanctions against the Kremlin.

Coalition partners stand by Kallas

Despite the mounting pressure, Kallas has refused to resign and has maintained the support of her coalition partners, the Social Democrats and Estonia 200. The leaders of these parties have said they trust Kallas and do not see any evidence of wrongdoing or corruption on her part.

Kallas, a former lawyer and the daughter of Estonia’s former prime minister Siim Kallas, is credited with boosting the Baltic nation’s international stature and leading a progressive agenda. She came to power in January 2021 as the first female prime minister of Estonia and heads a liberal coalition that holds a slim majority in parliament.

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