Latvia raises fees on Russian transit shipments through year-end

Latvia’s outgoing parliament has decided to raise fees on transit shipments arriving from Russia and passing through the country until the end of the year, ERR reported. The increase could reach 300 percent under a government proposal, but the final decision will be made by the state-owned infrastructure company LatRailNet.

Latvia has been seeking a legal basis to stop grain shipments from Russia travelling through Latvian ports to Europe and beyond. Imports for domestic use have already been banned, and the government is now looking for a way to restrict transit.

“Our preference is Latvia’s farmers. Their large grain volumes must be exported through Latvian ports. There must be no restrictions here,” Prime Minister Andris Kulbergs said.

The government agreed weeks before parliamentary elections that the quickest way to limit transit would be to raise infrastructure fees enough to remove the economic incentive for transporting grain through Latvia. The proposed tariffs are not included in the Railway Law, and LatRailNet, a subsidiary of Latvian Railways, would set them after assessing their economic justification.

It remains unclear whether the proposed 300 percent increase will be implemented. The government has also ordered Latvia’s Food and Veterinary Service to take grain samples to determine the origin of agricultural products. The process is time-consuming because the tests are carried out by a laboratory in the United Kingdom. The aim is to establish whether the railcars arriving from Russia contain grain stolen from Ukraine.

“All money raised from the tariff increase must be sent to Ukraine so that it can fight the Russian occupiers,” said Edmunds Jurevics, head of the New Unity faction in Latvia’s parliament.

Companies involved in the transit have declined to share information publicly. In parliament, however, Kristaps Krištopans of the Latvia First party argued against the fee increase together with the pro-Russian Stability! party. He said a company operating at the Port of Riga had paid the Latvian state 5 million euros this year as grain transit increased, while Latvian Railways Cargo paid 50 million euros annually.

Farmers also protested in the streets of Jekabpils. They said eastbound transit should be banned immediately and completely, arguing that Latvia otherwise supports Ukraine with one hand while supporting Russia with the other.