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Sunday 23.10.2016 | Name days: Daina, Dainida, Dainis

Saeima agrees to increase airBaltic’s base capital

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUOn Thursday, 3 December, the Latvian Saeima made the decision in accordance with which the parliament agreed to increase the base capital of Air Baltic Corporation. 45 deputies voted in favour of this decision, 13 voted against and 2 abstained from the vote.

According to the Saeima’s decision, Finance Ministry is allowed to increase appropriations for Transport Ministry worth up to EUR 80 million to help increase the base capital of Air Baltic Corporation following the signing of the shareholders agreement. This money is necessary to secure further development of the airline, as reported by Saeima press-service.

The Saeima emphasizes in its decision that this measure is necessary to ensure the deal does not have any negative impact on the state budget balance. It is also noted in the decision that airBaltic and its subsidiaries are prohibited from procuring, leasing or using equipment produced by industrial military complexes faced with European or international sanctions.

This project was submitted to the Saeima by the parliamentary Budget and Finance Committee based on a letter from Finance Minister Janis Reirs.

BNN had previously reported that loud scandal around the possible procurement of Sukhoi aircraft from Latvia’s national airBaltic airline is possibly a sly aimed manoeuvre to distract everyone from a bigger and nastier scheme. It is possible that this scheme is meant to create an opening for an inflow of state fresh funds into airBaltic and the subsequent acquisition of that money by potential investors, among which are Andris Skele and multiple figures close to the Russian Kremlin.

According to information provided to by reliable sources, the management of airBaltic had never considered procuring aircraft from Sukhoi. All announcements leaks that point toward plans to procure Sukhoi aircraft had been carefully prepared and leaked intentionally to enthusiasts and ‘target media’.

This leak may have been carried out with a single purpose only – to distract everyone from the size of financial investments for airBaltic and the special German investor found for airBaltic by Prudentia. This has been done to prepare the stage for the ‘public backlash in regards to airBaltic’s plans to procure aircraft from Sukhoi’ and make it look like a ‘victory of state interests’. With everyone distracted from Sukhoi, no one would think twice about government plans to invest EUR 80 million in airBaltic and the attraction of the German investor under undisclosed conditions.

Information published by the portal suggests that this distraction plan has close ties to Andris Skele and/or his associates. Sources say Skele’s handwriting is found all over this deal, as it is based on a single principle – find whatever in the country is in dire need of an owner and acquire it using half-legal means and third parties. It is widely known that this particular oligarch has had indirect financial interests in relation to airBaltic for years.

Multiple sources point to Skele directly, saying that he has had a hand in the previous ‘saving’ of airBaltic four years ago. Sources mentioned Skele as one of the main financial consultants of all financial schemes and the main author of most ideas. The goal of the most recent scheme, according to sources, is to use the Sukhoi scandal as a smoke screen to cover the defrauding of the EUR 80 million loan provided by the Latvian government to airBaltic.

According to sources, those behind the ‘smoke screen’ had gambled that in the current geopolitical situation Latvian politicians, media and society would believe the allegedly planned procurement of Sukhoi aircraft and spend considerable efforts to prevent it. Following this ‘victory’, no one would oppose the main goal of those behind this scheme – investment of state funds into airBaltic. Pietiek was provided with multiple potential amounts that could potentially surface as requests of airBaltic’s potential and currently unknown creditors – from EUR 30 million to EUR 100 million.


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