Latviski English По-русски
Monday 19.03.2018 | Name days: Jāzeps

BNN summary of the week: minister threatened with dismissal; ABLV Bank scandal

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUBNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Court; Problem; Decline; Commentary; Future; Proposal

CHANGE: Entrepreneur: many small and medium-sized businesses could drown in stagnation this year

2018 will be very intense for Latvia’s economy. It is predicted that thanks to exports and European Union funds, money will slow into the country, unemployment will decline and wages will grow. Predictions seem rather positive. However, the picture will likely be rather different for small and medium-sized businesses, says Turība University’s Business Management faculty dean, businesswoman and board member of SIA Sky Port Zane Driņķe.

Small and medium-sized businesses’ dynamics not expected to experience major fluctuations in 2018

The expert notes that medium-sized businessmen, looking at the current situation in the country’s economy, may become curious as to where positive predictions may come from.

She says that there are several aspects to consider – the number of active small and medium-sized companies has been growing lately, especially in production sectors. The number of newly-founded businesses has been growing steadily since 2003. This trend will continue in 2018.

Full article here

FIGHT: Economy Minister asked to fix increasing electricity bills; parties threaten with dismissal

Latvian Economy Minister Arvils Ašeradens has to fix the mistakes that have caused electricity bills to increase, said chairman of Free Trade Union Confederation of Latvia Egils Baldzēns in an interview to 900 seconds programme of LNT.

He believes the government should give in to the needs of households and farmers, as well as electricity consumers with a seasonal electricity consumption, to make the fee for connection that remains unused no higher than a couple of euros.

Baldzēns adds that the trade union does not intend to request the minister’s dismissal, because the goal is not punishing someone. Everything depends on how well or poorly mistakes are fixed.

Latvian Association of Regions (LAR) asks Economy Minister Arvils Ašeradens to resolve the situation with unjustifiably high electricity bills within two weeks. If nothing is done, ten members of LAR intend to request the minister’s dismissal at the 1 March meeting of the Saeima.

Full article here

COURT: Lembergs once again rejects court composition in his criminal case

Ventspils Mayor Aivars Lembergs, who is accused of serious crimes, rejected the composition of the court on Monday, 12 February. He said that judges are unable to provide an objective and fair viewing of the criminal case.

Lembergs claims his fundamental rights were breached during the viewing of the criminal case. This includes, according to him, his participation in inspection of each piece of evidence was not allowed, and that he was not provided with sufficient information regarding the charges presented to him.

In his statement, Lembergs referenced several court hearings that have taken place so far. He mostly focused on cases when the court declined questions raised by the defence.

Full article here

PROBLEM: sex clients sustain prostitution network in Latvia

Prostitution in Latvia is legal. Nearly anyone can be a sexual thrill-seeker or sex client and remain unpunished. Women who were forced into the life of prostitutes, on the other hand, are the ones who pay the price.

BNN spoke with MARTA Centre’s legal expert Zane Zvirgzdiņa to learn of the tricks and schemes recruiters use to lure women to live as prostitutes and what legalization aspect means for Latvia.

Prostitution is legal in Latvia

The lawyer explains that Prostitution Restriction Regulations are in force in Latvia. Those regulations were developed by the Cabinet of Ministers. Regulations do not prohibit prostitution as a whole. Instead the document introduces certain restrictions. «With that, as far as the state is concerned – prostitution is legal. Otherwise there would be no need to introduce restrictions,» explains MARTA Centre’s lawyer.

Have you ever dreamed of becoming a prostitute?

If prostitution is a legal service, one might ask ironically if prostitutes pay taxes and if they are registered as ‘self-employed’. When asked, the lawyer said no – prostitutes do not pay taxes. «The moment the state starts collecting taxes from prostitution, the state becomes a pimp, because the budget would thereby benefit from prostitution,» says lawyer Zvirgzdiņa, adding that prostitution itself is not illegal. Nevertheless, there are specific restrictions put in place by the Cabinet of Ministers.

«If we look at prostitution as a system, we have to understand that there are people involved in prostitution and sex clients. Without the latter, the system would not exist. The real situation is that as long as there is demand, there will be supply. One major problem in Latvia is that no one punishes sex clients,» says the legal expert of MARTA Centre.

The centre’s representative refrains from calling it a profession, backing her views with a rhetorical question: «Have you ever dreamed of becoming a prostitute when you were a child? Has any person ever said they would like their children to pick up this profession? Let’s not forget about the kinds of psychological and physical consequences this kind of activity can bring.»

Full article here

DECLINE: ABLV Bank was used to bribe and influence officials

Until 2017, the management of ABLV Bank had been using bribes to influence officials in Latvia to prevent legal measures and reduce threats to its high-risk activities, as mentioned in the statement released by US Finance Ministry’s Financial Crimes Enforcement Network (FinCEN).

FinCEN notes that the business practice employed by ABLV Bank ensures provision of financial services to clients who wish to avoid attention from regulators. The bank’s management and employees are also guilty of their clients’ illegal financial activities, including money laundering and using proxy companies to hide the identities of the true recipients of the bank’s illegal services.

ABLV Bank is considered creative and groundbreaking when it comes to the approach used to circumvent requirements of financial systems, as detailed in the report. The bank constantly improves money laundering methods and circumvention of regulations and ensures forged documents support the financial system. Some of the forgeries produced by the bank’s employees are of high quality.

Full article here

COMMENTARY: RB Rail CEO says interference «from above» has been in line with the law so far

We have seen interference «from above» in RB Rail’s activities. The law was not breached, however. With that, there was no need to report anything to law enforcement institutions, RB Rail CEO Baiba Rubesa told Ir magazine.

She says it is far more important to resolve matters, not «publicly shout in every direction». Rubesa says she did not turn to the police all this time because the law was never breached. «Nothing has been breached so far, and no one has threatened me with death.»

Rubesa admits that there are powers that want to delay the project’s realization. However, such a situation is common for all cross-border projects.

At the same time, she explains that cooperation has been good with both RB Rail council members from Latvia – Edvīns Bērziņš and Vineta Rudzīte. «We sometimes have disagreements, but we are nonetheless able to resolve matters together,» said RB Rail CEO.

She adds that there has been no opposition from Transport Ministry’s state secretary Kaspars Ozoliņš. «We can definitely thank Prime Minister Māris Kučinskis, because he backs the company in word and action,» said Rubesa.

RB Rail CEO, whose term ends in October, is certain that if she is dismissed the next head of the company will not be from Latvia. According to her, representatives of other Baltic States have zero interest in having a joint company. «They want 20 people obedient people, not a strong and capable team that would perform all work within five years,» Rubesa said in an interview.

Full article here

FUTURE: Czech Republic and Slovakia may add to NATO’s battalion in Latvia this summer

The Czech Republic and Slovakia may add to the NATO battalion stationed in Latvia at the beginning of summer 2018, as confirmed by Latvian Defence Minister Raimonds Bergmanis.

The minister said that Czech and Slovak troops will expand the combat group, not replace any of the represented countries.

He refrained from mentioning any precise number of troops, saying that this matter is for the aforementioned countries to clarify.

During his visit to Brussels, Bergmanis participated in a meeting of NATO Defence Ministers and the dialogue organized by Canadian Minister of National Defence Harjit Sajjan for member states of the expanded NATO combat group in Latvia.

Aside from Canada and Latvia, this meeting was also attended by Albania, Italy, Spain, Slovenia, Poland, Czech Republic and Slovakia. The sides discussed the presence of the multi-national battalion in Latvia and future steps in strengthening combat capabilities.

Full article here

PROPOSAL: Latvia ought to increase productivity to sustain predicted economic growth rate

Latvia’s Fiscal Discipline Council has approved Finance Ministry’s macroeconomic outlook for 2018-2021. This document will be used by the government as the foundation for consultations with European Commission to establish next year’s budget estimates, BNN was informed by the council.

The council views the ministry’s macroeconomic outlook as realistic. Nevertheless, there are concerns about the economic growth potential – it could turn out weaker than the ministry expects. This means economic growth may become slower and there may be less money to spend.

«Currently Latvia’s economy is growing rapidly. Nevertheless, it is necessary to follow development of the situation very carefully to make sure this rapid growth does not cause an overheating,» says Fiscal Discipline Council’s Chairman Jānis Platais. «This trend would be undesirable, because it could cause macroeconomic instability and worsen the country’s financial state in a long-term perspective the same way we witnessed it during the economic crisis.»

Finance Ministry’s developed outlook for macroeconomic indexes for the period until 2021 shows that actual GDP growth will be 4% this year and close to 3% in the next couple of years. Inflation, on the other hand, may grow more rapidly than expected.

Full article here


Leave a reply

Latvian cosmetics producers exports goods worth approximately 20 million euros

Cosmetics producers in Latvia export products worth EUR 20 million every year. Volumes increase 5% every year. The main export partner states are located in Europe. Still, there has been a significant increase of export volumes to third countries – to some countries this increase was as large as 60% -70%, according to data from Latvian Cosmetic Manufacturers Association.

US Chamber of Commerce worried that Latvia’s political culture has not changed since Ridzene talks

American Chamber of Commerce in Latvia (ACCL): «We are concerned that Latvian society’s and its government’s political culture has not changed much since the publication of information detailing events associated with Ridzene talks in 2009-2011. The state capture detailed there may still be possible...

Latvia’s prime minister open for talks regarding MPC system’s liquidation

Prime Minister Māris Kučinskis is prepared to discuss the possible liquidation of the mandatory procurement system, but not for all businesses at the same time.

Air temperature in Latvia to remain mostly positive throughout the week

On Monday, 19 March, weather in Latvia will change, as a low atmospheric pressure area together with an atmospheric front will approach the country from the north. The day will be sunny for the most part, but the amount of clouds will increase as hours go by, as reported by State Environment, Geology and Meteorology Centre.

Ukraine: British diplomats expelled from Moscow could work in Kyiv

In a reaction to Russia's announcement that it would expel 23 British diplomats from Moscow as part of the UK-Russia argument over poisoning of double-agent in an English city, Ukrainian Foreign Minister has suggested to his British counterpart that the 23 diplomats could now work in Ukraine.

UGF leader confirms: Lembergs will not be proposed for prime minister post

Aivars Lembergs, who is accused of serious crimes and is currently suspended from his post as chairman of Ventspils City Council, had proposed his candidacy for the post of prime minister of Latvia multiple times in the past. The moment has come at long last when Lembergs will not be an official candidate for the aforementioned post, as BNN was told by the leader of Union of Greens and Farmers’ Saeima faction Augusts Brigmanis.

NATO's defence spending benchmark met by three EU member states

Despite the current demanding security situation, in the NATO military alliance, no more than three member states of the European Union have reached the recommended defence spending sum in 2017 and Estonia is one of them.

In fight for northern Syria, Turkish-backed forces take city from Kurds

In the fight for northern Syria between forces led by Turkey and Kurdish fighters, Turkish-backed units had gained control of the heart of the Syrian-Kurdish city of Afrin.

Russian presidential election pronounced won by Putin

Russian President Vladimir Putin been announced as the winner of the Sunday, March 18, presidential election, as the politician has pledged to devote his new term in office to strengthen Russia’s defences against the West and to improve the quality of life.

Week in Lithuania. Some 5,000 gather in protest rally outside Lithuania's Parliament

Some 5,000 people gathered outside the Lithuanian parliament in Vilnius on Thursday, March 15, to express discontent with the failed parliamentary vote to impeach MP Mindaugas Bastys and the performance of the ruling Lithuanian Farmers and Greens Union.

BNN summary of the week: oligarch talks’ ownership; scandals in Lithuania; Estonia wants direct democracy

BNN offers a summary of this week’s topical news in a variety of categories: Progress; Scandals; Invitation; Fight; Opinion; Decline.

Remembrance day of Latvian Legionnaires passes with shouts and two arrests

The Legionnaires’ remembrance procession in Riga on Friday, 16 March, passed peacefully. Nevertheless, several conflicts did take place among differently-minded people near the Freedom Monument. Two individuals were arrested by police.

Influenza intensity in Latvia – moderate when compared to other European nations

A comparison of influenza activity in Europe shows that it is high or very high in several countries. Latvia’s influenza intensity is considered moderate, as noted by epidemiologist Raina Nikiforova.

Hourly labour costs in Latvia grew 7.3% in 2017

Compared to Q4 2016, in Q4 2017 hourly labour costs rose by 54 cents or 7.3 %, reaching EUR 8.02. Seasonally adjusted data show identical changes – rise of 7.3 %.

Rietumu Banka claims it has not worked with high-risk clients for years

Rietumu Banka has been steadily rejecting high-risk clients for years and has significantly reduced the volume of transactions, as mentioned by the bank’s representatives.

Lithuanian and Estonian businessmen are ahead of Latvia in terms of investments

In Latvia, 36% of small and medium-sized companies have plans to invest in the development of their business this year. In Estonia and Lithuania, on the other hand, the proportion of businesses with development plans is 42% and 46%, respectively, according to results of a recent study performed by SEB Bank.

Russia pledges maximum pressure on UK amid ex-spy poisoning row

Russian top diplomat in the UK has envisaged on Friday, March 16, that the Kremlin would use maximum pressure on London as Moscow insists it has not been involved in the poisoning of a former Russian-British double agent with a Russian-made chemical weapon, as has been found by British investigators.

Latvia’s ministry: Crimea’s annexation is illegal

18 March 2018 will mark four years since the Russian Federation violated Ukraine’s sovereignty and territorial integrity by annexing the Crimean Peninsula and causing military aggression in the country’s eastern region. With its actions the Russian Federation has violated international law and basic principles of international relation, says Latvia’s Foreign Affairs Ministry.

Building gas pipe to Finland, Estonia to organise works for EUR 135 million

Continuing the works on the Balticconnector gas pipeline between Estonia and Finland, the Estonian natural gas network company Elering has stated that around 135 million euros, including a 98-million-euro funding from the European Union, will be invested in the project.

Replacement of cash registers rejected by SRS would cost half a million euros

The State Revenue Service has declined 18,000 cash registers as unfitting for requirements established by the Cabinet of Ministers. Fixing the problems found in them would cost half a million euros, as reported by LNT News.

Latvian Anti-Nazi Committee presented with protest restrictions on 16 March

Administrative District Court has compiled a shortened ruling, in which it rejected Latvian Anti-Nazi Committee’s application and preserved the decision imposed by Riga City acting CEO on 13 March 2018 on establishing restrictions on the planned gathering and protest act for 16 March unchanged.

U.S. introduces Russian sanctions for election meddling and cyber-attacks

Washington has introduced sanctions against 19 Russian individuals and five entities blaming them for attempts to sway the 2016 U.S. election and perceived cyber-attacks.

Slovakian PM Fico replaced with fellow party member

Slovakian head of government Robert Fico has stepped down after the murder of a journalist shed light on corruption in Slovakia, prompting nationwide protests. The long-standing Prime Minister had offered to resign earlier this week if the ruling coalition was allowed to finish its term.

Weekends will be cold and sunny in Latvia; next week will have volatile weather

Starting with Sunday, 18 March, air temperature in Latvia will rise above zero in most of the country, as reported by State Environment, Geology and Meteorology Centre.

Lithuania’s ruling LFGU party remains unscathed by scandals

It seems that, for now, Lithuania‘s ruling Farmers and Green Union has been nearly damage-proof despite the lambasting.

Newest comments