bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 23.02.2017 | Name days: Haralds, Almants
LatviaLatvia

Economic Diary of Latvia. Can Latvia become an oil superpower?

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUUnder the influence of mutual sanctions between Europe and Russia, Latvia’s trade-economic activity more and more noticeably leans towards the Near East and Asia.

This week marked the launch of work of Kazakhstan’s Trade Mission in Riga. As part of it, a large business forum took place. For the first time since the establishment of mutual relations between Latvia and Kazakhstan a group of businessmen from Astana Almaty and other towns arrived in Riga without an official visit – there are no representatives from state structures among participants of the mission. This is the first visit of Kazakh businessmen organized by their own initiative. It is also the first such European visit.

Participants of the forum discussed matters related to the expansion of cooperation between the two countries in different areas, mainly in the sphere of investments, development of free economic areas and Latvia’s possible participation in the New Silk Way.

Representatives of 15 Kazakh companies arrived in Riga to participate in the forum and discuss cooperation options. Guests of the forum represented a wide range of economic industries: machine-building, metallurgy, chemical, construction, pharmaceutical and food industry. Businessmen from Kazakhstan held talks with Latvian wholesale and trade and distribution organization on possible supplies of products. Meetings were also held at the Healthcare Ministry and Agriculture Ministry.

Kazakhstan is Latvia’s largest trade partner in Central Asia. Foreign trade volume between these two countries was USD 161.2 million in 2015. Of that amount, Kazakhstan’s exports to Latvia reached USD 121.1 million.

The two countries successfully work together in transit and logistics sector. Kazakhstan is on the third place in terms of import volumes and fifth place in terms of export goods carried by rail. Kazakhstan also has its own terminal at Ventspils port – it is the only Kazakh terminal in Europe that handles grains transports to other countries around the world.

Cooperation is also performed in the sphere of woodworking, pharmaceuticals, food industry and other sectors. Kazakhstan has more than 60 joint companies that employ capital from Latvia. The number of Latvian companies with Kazakh capital has increased four times since 2010.

47% of Kazakhstan’s turnover of goods applies to the European Union. It is the only country that has an agreement with the EU in regards to expanded partnership.

The agreement on development of cooperation and business contacts between Azerbaijan and Latvia was signed this week. The document was signed on the sixth meeting of the inter-governmental commission for economic, scientific, technical and cultural cooperation between the Republic of Azerbaijan and the Republic of Latvia. At this event, Azerbaijan was represented by the country’s Transport Minister Ziya Mammadov. Latvia was represented by Transport Minister Uldis Augulis. While talks continue in regards to enhancement of relations in the sphere of dairy product processing, development of cooperation continues in agriculture and food product production.

Latvian dairy processing company Food Union continues expanding the export network in the Near East. The company has launched exports to Iraq by supplying the first seven ton of ice cream to this country. Dairy products produced in Latvia will be available in more than 200 cities across the country. The current contract with Iraq states that the production plant will be supplying at least 20 tons of dairy products and ice cream every month.

Black gold of the Baltic Sea

In general, Latvia’s efforts to explore countries that have not been active trade partners until now can have a more symbolic meaning. The aforementioned countries produce oil – something Latvia has a lack of. But only for now. Information regarding deposits of high-quality oil under the Baltic Sea has been circulating since the middle of the 20th century. In 1975-1985, survey of oil deposits in the Baltic Sea was being carried out by a joint Polish-German-Soviet company – Petrobaltic. It managed to drill 28 boreholes and find 8 oil and gas deposits. According to estimates of the Latvian government, the Baltic Sea holds deposits worth approximately 250 million barrels of Brent oil worth USD 6 billion.

Russia and Poland already harvest oil from the oil shelf of the Baltic Sea. Lukoil is in charge of that in Kaliningrad Oblast and Lotos Petrobaltic is the company in charge of its in Poland.

This week, Latvia’s government updated the composition of the work group for holding talks with the government of Lithuania in regards to economic cooperation in an exclusive economic area and the continental shelf of the Baltic Sea. All this may sound complicated but it is worth keeping in mind that this work group will perform analysis use of resources, evaluation of regulations and licensing policy in the sphere of production of hydrocarbons in the border zone. This once again actualizes the matter regarding the division of responsibilities between Lithuania and Latvia in regards to oil production in the Baltic Sea. To become an oil-producing country means climbing a whole new level.

The first ambassador

Those are by brave fantasies. One should remain in reality to keep a cool head and a firm grasp on things. It is in this reality and this week that Saeima’s Foreign Affairs Committee approved Latvia’s ambassador to the Organisation for Economic Cooperation and Development Ivita Burmistre. OECD now has to approve her on their side.

Ref: 017.109.109.7982


Leave a reply

EC: Latvia’s tax structure does not contribute to growth

«Latvia’s economic growth will be relatively rapid, but income inequality is a major problem that needs to be prevented,» concluded the European Commission in the latest report on economic development of member states.

Study in schools proves connection between health problems and classroom air

Microbiologists in Finland have extensively analysed the health of school teachers and stated that it has been scientifically proved for the first time that there is a direct connection between the quality of air in rooms and human health.

Only five asylum seekers remain in Latvia

Only five asylum seekers resettled in Latvia as part of the EU refugee resettlement programme currently remain in the country – one family of three and two individuals, one of which intends to leave the country in the near future, said manager of Safe Home asylum Sandra Zalcmane told 900 seconds programme of LNT.

Ascendum: the country needs a strong NGO sector

Non-governmental organizations do not wish to play the role of a guard dog in the work with the government and state administration, because Latvia’s civil society is mature enough to the an equal cooperation partner for the government, states Ascendum association.

State has to register adoptions by same-sex couples, Estonian court rules

According to a ruling by the Tallinn administrative court, the Estonian Interior Ministry should have made entered in the population register adoptions made by a same-sex couple that has registered its partnership.

Dobeles dzirnavnieks: organic animal feed – Latvia’s potential export product

Latvian grains processing company Dobeles dzirnavnieks has commenced production of organic animal feed, adding that it is a potential export product.

CAMART2 – most massive project in Latvia’s scientific history

The biggest project in Latvia’s scientific history – CAMART2 – has been opened in a positive atmosphere. «Commencement of the largest international scientific project in our country’s history once again proves the high level of competence of our scientists. With CAMART2, Latvia becomes a Baltic Silicon Valley,» says Latvian Education and Science Minister Karlis Sadurskis.

EUR 1.8 million to be invested in Estonian new e-Police

With the development of Estonia’s new e-Police system continuing, it is planned to invest 1.8 million euros in its third stage, as police expect a faster and more practical revamp of the current software and procedure.

Latvia to procure nearly fifty used howitzers; first ones to be supplied in autumn

Latvian National Armed Forces will sign an agreement with Austrian Defence and Sports Ministry for the procurement of M109 series 155mm self-propelled artillery system. This agreement includes not only the procurement of howitzers, but also fire support centre and driver training platform procurement, as reported by Latvian Defence Ministry.

Credit institutions in Latvia to secure payment accounts for all residents

From now on all residents will be provided with the option to use payment account service in credit institutions, as reported by Saeima press-service.

90 years – such average life expectancy forecast for women in South Korea

Women in South Korea would be the first among other countries to reach an average life expectancy of over 90 years, scientists conclude.

Industry experts wish to reduce VAT on food in Latvia

During the first meeting, industry experts began considering opportunities for reducing value added tax rate on food or certain food product groups.

Swedish police investigate riot in Stockholm

Police in Sweden has started an investigation into a riot that broke out this week a mainly immigrant part of Stockholm.

Expert: Latvia still has the highest unemployment level among Baltics

«Tendencies on the labour market will become more positive this year. Queues of unemployed people are expected to decline more quickly. Unemployment will be reduced by negative demographic trends too, but there will not be any sharp changes.

Augulis: Pasažieru vilciens has to resolve the matter with procurement of 32 trains

The greatest challenge for Pasažieru vilciens this year will be the continuation of the procurement procedure of new trains. This project is expected to conclude with the successful procurement of 32 new trains by the end of the year, says Latvian Transport Minister Uldis Augulis.

EU: Privacy settings in Windows 10 are concerning

Representatives of EU’s member state data protection watchdogs have stated that concern remains about privacy settings on Microsoft Windows 10 operating system, although the software firm has announced some changes to its installation.

Non-declaration of cash to be applied with fine equal to 5% of the amount

In the event of non-declaration of cash money when crossing the border of the Republic of Latvia, a fine equal to 5% of the amount will be applied. This was decided by the Cabinet of Ministers during the viewing of Finance Ministry’s amendments to the Law on Declaration of Cash at the State Border.

KNAB commences criminal process against state environmental inspector

Corruption Prevention and Combating Bureau has commenced a criminal process against the senior environmental inspector of the Nature Protection Office’s North-Vidzeme Biosphere Reserve for requesting a bribe, KNAB reports.

Oil prices around the world have no unified tendency

Oil prices around the world had no unified tendency in the morning on Tuesday, 21 February. Optimism regarding the ability of oil exporter organizations and oil producer countries to realize the agreement on reduction of oil volumes does remain on the market.

Estonian anti-humantrafficking helpline contacted by 420 people last year

As human trafficking-related crime is on the rise in Estonia, a special helpline, received calls from 420 people last year, with people reporting mostly, when they are already in trouble not preventively.

Viewing of Lembergs and For Latvian and Ventspils criminal case continues

On Tuesday, 21 February, Riga Regional Court will continue reviewing the criminal case involving Aivars Lembergs and For Latvia and Ventspils. In it, Lembergs is accused of bribery, document forgery and other crimes.

State Border Guard apprehend 32 perpetrators

On Monday, 20 February, officers of the Latvian State Border Guard apprehended 32 perpetrators attempting to illegally cross the state border.

Trump calls Estonia «valued ally and friend» in letter to Kaljulaid

In letter to Estonian President Kersti Kaljulaid on the occasion of the upcoming 99th anniversary of the independence of Estonia, U.S. President Donald Trump has referred to the Baltic country as «a valued ally and friend».

Caksa: low wages cause deficit of doctors in many places

Because of low wages, tension and concern are felt in many fields of medicine, said Healthcare Minister Anda Caksa in an interview to Rīta panorama programme of LTV.

Authorities to perform in-depth assessment to prevent existing problems in legislation

Court Administration, Organisation for Economic Co-operation and Development and Directorate for Public Governance and Territorial Development will perform an in-depth assessment to identify existing legislative problems that create an administrative burden for businesses.

Newest comments