Latviski English По-русски
Sunday 23.10.2016 | Name days: Daina, Dainida, Dainis

Ventspils nafta expects justice and larger support from the government

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUHaving acquired 99% of Ventspils nafta stock, Vitol has been in a favourable position. The company can now consider optimization, notes Ventspils nafta Chairman Robert Kirkup. At the same time, he admits the company wishes there was more government support and protection. «I would like the government to help deal with the recent attacks we have suffered. These attacks do a considerable amount of damage to both business and Latvia’s economy,» – said Kirkup.

He admits the company would like to see an open and transparent tax system that would apply taxes to all companies in accordance with an equal system. «Why does a real estate tax rate of one company differ from that of another? Why do we have to pay more than other companies? Why do some companies have advantages and benefits and others don’t? This should not be acceptable. Even though the government sometimes tries to change this situation, it does not work all the time,» – said Kirkup.

The company’s head would like to see the process of issuing permits is carried out fairly. «Ventspils naftas terminals is the largest terminal in Ventspils and Baltic States. Why don’t we receive all the necessary permits? Why can’t we receive permits and build what we plan? Why are there active attempts to interfere with our business? It only hurts the state economy. Why cannot possible change this situation on our own. Why don’t want to enter politics. The government should help resolve these problems,» – said Kirkup.

Ventspils nafta also feels there is no support from Ventspils Municipality and Ventspils Freeport. «The government provides support in many situations. However, it would seem Ventpsils does not take national interests into consideration. This kills Latvia’s investment climate and impedes international investments. Latvia eagerly invites foreign investors to invest more money in our country, but it is very hard to convince the board of directors if investors do not receive support,» – said the head of Ventspils nafta. According to him, combating these problems is a major challenge. It is one of the reasons why Vitol has decided to acquire the second half of stock in Ventspils nafta. It was not done for financial reasons. «We don’t think the price was exceptionally favourable for us as many say,» – noted Kirkup.

As previously reported, it was reported in the middle of September that VN’s largest co-owner – Vitol Group’s owned Euromin – procured 43.25% of VN stocks for EUR 79.98 million thereby acquiring 93.24% of all stocks in the company. According to information provided by sides involved in the transaction, the price of individual stocks was EUR 1.77.

Kirkup notes that the price was much higher than the stock market’s price shortly before the deal.

He says Vitol looks at these investments as long-term business – in a 10, 20 or 30 years perspective. Looking at potential commitments in a situation where it is no longer possible to sustain the pipeline, dismantling costs would be enormous. Environmental costs and costs for pipeline management and terminal are also enormous. «We shouldn’t even mention the risk Vitol has taken by acquiring Ventspils nafta. But Vitol management had nonetheless considered these matters. In addition, Vitol has bought out minority shareholders’ stock. This is why the stock price should be viewed in the following context – commitments and minority shareholders’ stock,» – explained Kirkup.

He admits that Vitol’s advantage as a result of this deal is the opportunity to restructure the group and sell certain portions of the business. The negative aspect of the deal is the attacks made against the company in the press.

Ventspils nafta is one of the largest company groups in Latvia. It works in the field of oil product transport, shipping and storage. Ventspils nafta is the parent company. It manages investments in companies part of its group and assess the total value and growth potential of each individual company.

Ventspils nafta owns 51% of stocks in Ventspils nafta terminals, which is the largest oil and oil product handling terminal in Baltic States; 66% of stocks in LatRosTrans, which is a joint Latvian-Russian company in Baltic States; 49.94% of stocks in Latvian shipping company, which is one of the largest ship owners in the medium and handy-type tanker segment in the world.


Leave a reply

Week in Lithuania. Lithuania unveils new tourism brand

Lithuania will until 2020 use a new tourism brand to market itself to foreign tourists. The new brand, unveiled by the State Tourism Department on October 19, features the words «Lithuania. Real is beautiful» printed on a pastel mint postage stamp

Economic Diary of Latvia. The richer the people, the better the security

A very interesting matter was voiced in Latvia this week. The matter addresses the link between the overall level of welfare of the country’s residents and the country’s national security.

Four teachers in Latvia are paid wages that exceed EUR 2,000

In September 2016, the biggest teacher’s salary paid in Latvia with bonuses was EUR 2,260.27, as LETA was informed by Education and Science Ministry.

Producer price level down 1.6% in Latvia’s industry

Compared to August, the level of producer prices in Latvian industry increased by 0.3% in September 2016.

SRS Tax Debt Enforcement Office director Cerneckis steps down

On Friday, 21 October, director of Latvian State Revenue Service’s Tax Debt Enforcement Office Kaspars Cerneckis submitted his resignation.

Bookmakers predict Sadurskis’ remainder in his post for the rest of the year

Latvian Education Minister Karlis Sadurskis has been forced to distance himself from political opponents and teacher trade unions because of criticisms regarding reduced wages caused by the teachers’ pay reform. Nevertheless, political support will keep the minister in his post, bookmakers believe.

Lithuanian military discussing deployment of long-range missiles

A senior Lithuanian military officer has on October 20 stated that Lithuania is considering the deployment of long-range missiles in the country in the framework of hosting a multinational NATO battalion in 2017.

Ukraine in joint declaration with Lithuania, Poland condemns WWII aggressors

The Vekhovna Rada of Ukraine has this week adopted a joint declaration with Lithuania and Poland attaching responsibility for World War II to Germany, the USSR and the international community’s «appeasement policy».

Saeima Budget Committee conceptually approves 2017 budget project

On Thursday, 20 October, Saeima’s Budget and Finance Committee supported the state budget project for 2017, the medium-term budget contents for 2017, 2018 and 2019 and 57 legal drafts associated with the project.

Facebook sorry for removing breast cancer informative video

Facbook has expressed apologies for the removal of a breast cancer informative video shared on the social network by a Swedish foundation.

Two of the last twenty three first refugees have left Latvia

The last two of the first twenty three refugees resettled in Latvia have left for Germany, as reported by LTV.

Pregnant woman in Italy dies after doctor allegedly refused to perform abortion

Police in predominantly Catholic Italy is investigating a case of a woman pregnant with twins dying after miscarriage.

Russia applies discount on transit from Belarus

Russian Railways has applied a 25% discount on petrol, diesel fuel and crude cargo transports from oil processing plants in Belarus to Russia’s north-west ports. With that, Russia has basically provided Belarus with tariffs equal to tariffs in Baltics.

The first container train headed for Riga departs from China

On Thursday, 20 October, Latvian Transport Minister Uldis Augulis, representatives from LDz and YXE International Container Train, multiple Chinese officials and Latvia’s ambassador in China Maris Selga saw off the first test container train from China to Riga.

Customs officials intercept hashish shipment worth EUR 2 million

Latvian State Revenue Service’s Customs Police intercepted and confiscated a shipment of more than 200 kg of hashish worth EUR 2 million, as journalists were informed by SRS Customs Police Director Kaspars Podins on Thursday, 20 October.

SA: Riga Freeport has only realized one of five of our recommendations

Latvian State Audit follows the development of the largest investment projects especially carefully, because the state does not seem to handle them all that well. Krievu Island project is one of the largest investment projects, because there is European Union finances invested in it...

Job seekers in Lithuania want Western salaries, employers dumbstruck

Although Lithuanian labour market is in desperate for workforce, but those willing to toil will nod to a job offer only if the pay is really big. So big that the country‘s hirers feel like grabbing their heads upon hearing the candidates‘ salary expectations.

Overall government budget decreased in 2015

In 2015, the general government budget deficit amounted to EUR 309.0 million or 1.3% of the gross domestic product, whereas the general government consolidated gross debt amounted to EUR 8 846.3 million or 36.3% of the GDP.

SP: claims about Motorola’s murderer are an attempt to show Latvia as the enemy

Latvian Security Police views claims that Donetsk military commander Arseny Pavlov, aka Motorola, was allegedly killed by a hired killer from Latvia named Marks Ozolins is nothing more than yet another attempt at information war aimed to demonstrate Latvia and its citizens and enemies.

Estonian President Kaljulaid not to ask state to pay rent

Estonia’s new President Kersti Kaljulaid will not ask the state to pay rent for using her home unlike the former head of state Toomas Hendrik Ilves did.

Every third coin with Milda’s image has made its way to Europe

Every third euro coin with Milda’s image has found its way to Europe. The proportion of those coins in Latvia is 71% of all euro coins in circulation, according to monitoring data compiled by Citadele Bank’s CBL Cash Logistics service.

Estonia plans to increase female proportion in military

Estonia has announced plans to triple female involvement in the country’s Defence Forces and to expand the list of units accessible to woman soldiers by 2018.

Pre-paid mobile card users to be registered as part of a plan to reduce grey economy

At the meeting of state secretaries on 20 October, a proposal was presented from the transport ministry to begin registration of mobile pre-paid card users.

Next year’s budget plan and other decisions viewed by Saeima this week

On Thursday, 20 October, the Saeima will gather for an extraordinary meeting, during which deputies will discuss the next year’s budget plan and 57 associated legal drafts.

European Space Agency attempts to re-connect to its Mars probe

The European Space Agency has lost contact with its Mars probe on October 19 shortly prior to its planned landing on the planet.