The Baltic News Network published the following article on June 9th, 2011.

The Baltic Association of Transport and Logistics (BATL) warns Ventspils Free port administration’s activities against AS Ventspils Grain Terminal clearly suggest once more the changes are necessary within Ventspils Free port administration.
Kazakh investors own 100% of AS Ventspils Grain Terminal, which is a perspective project to strengthen the economic relations between Latvia and Kazakhstan. If the project was implemented successfully, it would be a signal also for other investors to place financial resources in the Latvian economy. The association agrees to Economy Minister Artis Kampars description of Ventspils Free Port activities – irresponsible, mismanaged and anti-governmental, according to BATL statement.

BATL, which is made up by the leading companies operating in Ventspils Free Port, point out they are forced to deal with the methods of its administration and its arbitrary, economically ungrounded and different decisions regarding a number of companies.

Similalry, BATL also stresses the port has turned into a private company run by a small number of individuals and its key aim is no longer to develop the port but to lobby «their» companies and harm others.

Consequently, the-once-famous free port is now lagging behind almost all ports along the eastern cost of the Baltic Sea.

Back in mid 1990s, Ventspils Free Port handled almost as much as Saint Petersburg, Tallinn, Riga, Liepaja and Klaipeda ports, while now each of these ports handles much more than Ventpils.

This clearly calls for intervention of the state, as it is a matter of the responsibility of the state and international reputation, thus, BATL will turn to the Latvian Saeima and Cabinet of Ministers asking to arrange the legislation in terms of Ventspils Free Port, according to the association.

You may read this article in the Baltic News Network in the following languages:

Latvian: BALT: Ventspils brīvostas pārvalde lobē savus uzņēmumus, nevis valsts intereses

Russian: BATL: правление Вентспилсского порта лоббирует свои интересы

English: BATL – Ventspils Free Port lobbies its companies instead of Latvia’s interests

BNN reports, that Uldis Augulis who is the latvian Minister of Transport has called LITASCO and Ventbunkers to a meeting to resolve the current situation - the blocked Ventbunkers terminal and the blocked latvian railway system. LITASCO was represented by Mr. Andrey Polyakov.

The Minister stated, that if LITASCO does not lift their fuel from the Ventbunkers tanks, the merchandise will be nationialized and sold elsewhere. So finally LITASCO agreed to send their ship (waiting outside the harbor) to pick up the oil.

This does not resolve the whole situation as still thousands of - in the mean time fully frozen - railcars loaded with oil are waiting for discharge - distributed all over Latvia.

With the blocking of the Ventbunkers facilites, LITASCO - a daughter company of LUKOIL - has tried to force Ventbunkers to continue their contract for 2011.

Read the full article in Baltic News Network.

Here you can find the original Ventbunkers press release: 20110214-VBU eng 14.02.2011.

The history of this conflict reads like crime novel. In 2010 Ventbunkers requests the payment of 20 mio. $ for services from LITASCO. LITASCO says, they have already paid - but are not willing to disclose where the money went. The money has never arrived on the Ventbunkers bank accounts. Mr. Aivars Lembergs also says, that there might have been special agreements so that the money went "elsewhere".

As Ventbunkers found, that the prices charged to LITASCO have been to low anyway, they started a contract with a new client for 2011 - and told LITASCO that the contract will not be continued. This will cost LITASCO a lot of turnover and profit, as they lose the capacity of the Ventpils terminals.

So LITASCO tried to force Ventbunkers to continue the contract - by blocking their terminal facilities. How this is possible? That was an easy task for LITASCO - they just did not pick up their last deliverey end of December 2010 which was stored in the Ventbunkers tanks and ready for being loaded onto a LITASCO ship. LITASCO kept their ship away from the harbor - and waited. The flow of oil stopped, the Ventbunkers terminal got closed. The thousands of railcars coming from Russia for the next shipment could not be unloaded into the Ventbunkers tanks - as they were still filled to top.

This is business the russian style. Brute force in dealing with business partners. Also these undisclosed payments shed a strange light onto LITASCO and LUKOIL. If these payments were really made - as black payments to some "agents", then LITASCO really is in trouble.

If they disclose where the money went, they will bring their "agents" into trouble. The only solution we can see, is , that they now say "oops, we forgot to pay - and did not notice until now" - and pay the missing 20 mio. to Ventbunkers. But where will the money come from? Would LITASCO pay twice - or reclaim the amount from their "agents"?

An interesting story. We will see what happens.

Read the article in Baltic Course.

According to the seasonally adjusted data at constant prices, December 2010 (excluding the pre-celebration shopping) the total retail trade turnover decreased by 1.4%, compared to November. The retail trade of non-food products declined by 1.9%, but the retail trade of food products plummeted 1.2%, the Central Statistical Bureau indicates.

Read the full article in bnn-news.com. There is also a latvian version available of this article.

Construction work

The BNN news network report in their article dated January 14, 2011 about a forecasted salary increase in the trade and construction industry.

The registered unemployment rate will drop in 2011 for sure – first and foremost due to the fact because jobless persons have already made use of all types of support programmes. It will not be beneficial for them to continue being unemployed, considers the Latvian Employers’ Confederation.

Construction work

The employment indicators could fall by 2 to 3 percentage points this year – respectively, the number of the unemployed could drop from 14% to 13%, which is about 150 000 jobless persons.

The employment growth will not be fast, because it is a characteristic of a post-crisis period that growth is mainly based on productivity boost, the experts indicate to the business news portal BNN.

The full article is available at the BNN news network.

All three Baltic States reported similar price changes at capitals’ stores – in late 2010 the prices were higher than at the end of 2009; yet lower than in late 2008.

The price level differs from country to country, each having products that are the most expensive or cheapest in the Baltics.

However, it should be recognised that Vilnius shops have more products with the lowest prices in the region, indicates the AMPC Director Ingūna Gulbe.

This article about food products trade in Vilnius is available on BNN in english and in latvian version.

BNN reports Increase in producer prices

In their article dated from January 5th, 2011 the Baltic News Network reports about the producer price growth in Latvia.

BNN points out that producer prices in Latvia surged 0.2% in November 2010, when compared to the previous month, forming the EU second slowest growth.

Furthermore BNN states, that the fastest climb of producer prices was found in Ireland and Greece - with a growth rate of 1.3% comparing November and October 2010.

Also Bulgaria, the UK and Hungary are facing an increase by 1.1% in this period.

Visit Baltic News Network to read the full article in latvian or english.

Ingūna Gulbe head of the Agriculture Market Promotion Center

On January 4th, 2011 the Baltic News Network published an article about expected price increases for poultry.

BNN states, that in December 2010 poultry price amounted to 14% more in shops and 7% more in markets, compared 2009, forming 1.87 LVL/kg and 1.82 LVL/kg respectively.

Due to BNN poultry traders in Latvia have significantly increased their prices in December 2010 - probably to take advantage of the holiday season.

The poultry prices seem to be closely related to grain prices. Grain forms a major cost in poultry production.

Read the full article on the Baltic News Network. Article also available in latvian on the BNN platform.

As BNN expresses, the manufacturing of non-metallic minerals had the biggest output in industrial production.

11.4% of increase from November 2009 to November 2010 is quite an increase.

Read the full article on BNN in english. You may also be interested in the Russian Version - or the Latvian Version of this BNN article.

Microsoft supports the unemployed

On December 28th, 2010 - right before the end of the year, the Baltic News Network reports on a new activity of the software company Microsoft:

Microsoft has granted 827 870 US dollars to the Latvian Information and Communication Technology Association to support the unemployed and develop their computer skills, as well as provide professional career development.

The article of BNN points out, that the new framework of Microsoft will help at least 300 job seeking persons to find a new job in 2011.

The full article is available at BNN in english, latvian and in a russian version.