Latviski English По-русски
Monday 17.02.2020 | Name days: Konstance, Donats

Foreign investment volumes in Latvia reach EUR 7.03 billion in 2019

(No Ratings Yet)

investments, Latvia, counties, economy, sectorsThe volume of foreign investments in Latvia reached EUR 7.03 billion at the end of 2019. However, when compared to 2018, this amount has declined EUR 125.42 million, according to information compiled by Lursoft.

When compared to 2015, when the volume of foreign investments was EUR 7.54 billion, the amount has reduced by EUR 502.33 million.

13 300 transactions with investors were registered in Latvia last year. 4 200 of them were positive – investments were made to capitals of Latvian companies, according to data from Lursoft.

Arnis Sauka, the author of the latest study about foreign investment environment index of the Foreign Investors Council in Latvia, has concluded that in the past two years Lithuania has also been able to attract foreign investments worth approximately EUR 2.7 billion. Estonia has attracted approximately EUR 3.1 billion, whereas in Latvia the amount is only EUR 1.1 billion.

Estonians invest more than withdraw

Only investments from Estonia had increased in Latvia in 2019. The volume of investments from Russia had reduced by EUR 183.21 million and investments from Lithuania had reduced by EUR 17.43 million.

Five cases when Estonian citizens had invested in Latvian companies more than EUR 10 million were registered last year. There were also three cases when the volume withdrawn investments had exceeded EUR 10 million. At the same time, not a single case when Lithuanians invested EUR 10 million or more in Latvian companies was registered last year, as reported by Lursoft.

The most rapid increase was observed for German representatives’ investments in Latvian-based companies last year – by EUR 365.32 million. This happened thanks to the EUR 288 million investment of German construction materials manufacturer Schwenk in Cemex (now known as LLC Schwenk Latvija).

Read also: Latvia is doing everything to avoid getting grey-listed, says Kazāks

The company reports that the sold assets in Baltics include cement production plant in Brocēni, which has a production output of approximately 1.7 million tonnes annually, four aggregates quarries, two cement raw materials quarries, six ready-mix plants, one port terminal and one land transport terminal in Latvia. The deal also covered Cemex’s indirect participation of 38% in one cement plant in Akmene, Lithuania.

This deal also explains that the most rapid decline is observed for investments from Spain, because the previous owner of Schwenk Latvia that had invested EUR 288 million came from there.

A decline for investments from Sweden is explained by Lursoft with Luminor Bank’s last year’s reorganization, as a result of which Latvian-Lithuanian Luminor Bank handed over all of their property to Estonian Luminor Bank. Now Estonian Luminor Bank works in Latvia and Lithuania through branch offices. The base capital of the reorganized Luminor Bank in Latvia was EUR 191.18 million.

Four counties left without foreign investments

In 2019 the volume of foreign investments had increased in 48 municipalities, of which Saulkrasti County had the most rapid increase. In 2018, foreigners had invested EUR 145.35 thousand in companies registered in the county. At the end of 2019, this amount had increased more than 180 times, reaching EUR 26.26 million.

This happened thanks to an increase of base capital of LLC SCA Mežs Latvija, with Swedish SCA Graphic Sundsvall Aktiebolag investing several million euros into the company.

Lursoft data shows that the volume of foreign investments in eight counties had remained unchanged last year, whereas other municipalities had experienced a decline. Among them are Alsunga, Rugāja, Vārkava and Baltinava. Although the four of them were among municipalities on the list of foreign investment recipients, in 2019 all four of them were taken out.

The lion’s share of foreign investments is concentrated among companies registered in Riga. Although over the course of the year their volume has decreased 3.39%, companies in Riga still have managed to attract more than 75% of all foreign investments received by Latvian companies.

Companies registered in Riga, Ķekava, Ventspils, Liepāja amd Garkalne managed to attract the biggest foreign investments in 2019.

One-fifth of foreign investments attracted by real-estate companies

Lursoft statistical data shows the most rapid increase was observed in healthcare and social care sectors last year. Over the course of the year the volume of foreign investments in companies of these sectors had increased 27.31% or EUR 2.41 million, reaching EUR 9.96 million.

At the same time, in monetary terms the biggest foreign investment increase was noticed among companies engaged in real estate operations. According to information from Lursoft, the volume of foreign investments received by companies working in this industry in 2019 had increased by EUR 235.82 million. At the end of 2019, investments had reached EUR 1.38 billion, which is nearly one-fifth of all foreign investments in Latvian companies’ base capitals.

The most rapid capital increase was experienced by LLC Lidl Latvija, whose base capital had increased EUR 71 million and LLC Joom, whose base capital increased EUR 81.53 million.

Not all industries have had an easy time with foreign investment attraction. In certain industries the volume of saved foreign investments had decreased in 2019. For example, this is applicable for transport and storage sectors. While in 2018 the saved foreign investment volume in base capitals of these companies was EUR 538.31 million, last year the volume was EUR 381.53 million. The annual decline was 29.13%.

Leave a reply

Denmark plans to have Latvian citizen Misāne handed over to South African Republic

On Friday, 14 February, the Danish court ruled not to release Latvian citizen Kristīne Misāne from custody. In the South African Republic the woman is accused of kidnapping her own child, as LTV was informed by Misāne lawyer.

Week in Lithuania: retailer Maxima got in trouble, Turkish firm’s assets frozen, New Agency set up

Lithuania's concessions provided to the Polish business group Orlen, operating an oil refinery in Lithuania's Mažeikiai, have helped to improve bilateral relations but were not the key element in their thaw, Lithuanian President Gitanas Nausėda said this week.

BNN summary of the week: Levits urges protecting officials. Riga City Council toppled. Tax changes planned

The BNN gives you a summary of the key events of the past week, told in news stories of the following topics: Serious signals; Perseverance; Dismissal; Tax changes; Media supervisors; Inflation; Slower over the bridge and Belief protectors.

Prime minister orders development of proper government MPC monitoring rules

Latvian Prime Minister Krišjānis Kariņš has ordered Economy Minister Ralfs Nemiro to immediately commence work on a new mandatory procurement component monitoring project and submit it as soon as possible to ensure efficient control over the system, as confirmed by the prime minister’s office.

1 700 medics infected with coronavirus in China; six dead so far

More than 1 700 medics in China are confirmed infected with the new coronavirus. Six of them have already died, as confirmed by healthcare officials.

Number of foreign guests hosted in Latvian places of accommodation up 1.6%

2.85 million foreign and Latvian visitors stayed at Latvian tourist accommodation establishments in 2019, which is 1.6 % more than in 2018. Compared to the previous year, the number of nights spent by visitors increased by 2.6 %, reaching 5.51 million in 2019.

Experts approve Riga Central Station’s Rail Baltica regional train reception solution

A solution has been found to install a four-lane railway section at Riga Central Railway Station to replace the existing two-lane section. This will help secure not only international and airport connectivity for Rail Baltica trains but also further improve intercity and suburban train services, as reported by the project’s representatives.

Beness Aijo asks Vladimir Putin for political asylum; claims Russia has released him

Beness Aijo, who fled Latvia to avoid criminal prosecution for calls of a violent overthrowing of the government, has asked Russian President Vladimir Putin to provide him political asylum. He also claims Russian authorities have released him from custody.

Share prices plummet on stock markets over concerns for coronavirus

On Thursday, 13 February, share prices around the world plummeted as concerns over the Covid-19 coronavirus epidemic in China. London Stock Exchange index declined shortly after British Finance Minister Sajid Javid’s sudden resignation.

Saeima to add considerable amendments to Criminal Procedure Law

On Thursday, 13 February, Latvian Saeima approved amendments to the Criminal Procedure Law that provide the duty to provide truth in testimony if a person uses the right to testify.

Week’s end in Latvia will be snowy, rainy and windy

Strong wind, which may reach a speed of 25 m/sec along the coast, is expected at this week’s end in Latvia. Air temperature, however, will remain mostly unchanged, as reported by Latvian State Environment, Geology and Meteorology Centre.

National Alliance and New Unity may run in Riga City Council elections separately

Following the decision made by the New Conservative Party to run in upcoming Riga City Council snap elections separately, a similar decision will likely be made by the National Alliance «All for Latvia – For Fatherland and Freedom/LNNK» and New Unity.

Airbnb and Vilnius sign «historic» agreement, taxmen to zero in on short-term rentals

Long chastised for little regulation, Airbnb, a popular short-term rentals platform, was praised this week in Lithuania after capital city Vilnius and Airbnb inked an agreement, envisioning that from February 1 onwards Airbnb will automatically collect Vilnius city tourism tax due per night and per person and transfer the sum directly to the City of Vilnius on behalf of hosts.

Latvian parliament dissolves Riga City Council

The Saeima has decided to dissolve Riga City Council. The city council remains active, however, because the law on its dismissal will come to force the next day after its promulgation. Now President Egils Levits has ten days to make his decision on the promulgation.

Tallinn residents reject proposal to limit driving speed to 40 km/h

Residents of Tallinn have rejected mayor Mihhail Kõlvart’s proposal to limit driving speed within city limits to 40 km/h, forcing the municipality to look for other ways to control road traffic speed, as reported by Estonian public media ERR.

Journalists Kalderauska and Eglītis approved as members of National Electronic Mass Media Council

On Thursday, 13 February, Latvia’s Saeima approved journalists Ieva Kalderauska and Jānis Eglītis as new members of the National Electronic Mass Media Council.

European Parliament urges putting an end to illegal pet trade

To protect animal welfare, pet owners and public health, the European Parliament urges the European Union to come up with an action plan to put an end to illegal pet trade, BNN was informed by EP press-secretary in Latvia Jānis Krastiņš.

Kariņš: Baltic and Nordic region should become Europe’s leader

«Baltic and Nordic countries region will be a leader in Europe when it comes to climate policy, innovations and hybrid-security matters. It is in our interest to enhance this commitment by implementing a reasonable and ambitious policy in these sectors,» said Latvian Prime Minister Krišjānis Kariņš during his meeting with Finnish Prime Minister Sanna Marin.

Animal rights activists show footage of cruel treatment of animals at Lithuanian fur farm

Animal rights activists have made a video recording depicting unacceptable conditions in which minks are kept in some fur mark in Lithuania, as reported by Lithuanian public media LRT with reference to Daily Mail.

Latvian government proposes increasing state family benefits

In the context of expected tax changes it is proposed to increase the family state benefit for children, estimating that this may cost an additional amount from EUR 81 to EUR 97 million a year, according to information available to LETA in regards to the offer for tax policy guidelines for 2021 to 2025.

Lawyers: Olainfarm talks should be analysed by law enforcement institutions

Analysis of recorded Olainfarm talks should be entrusted to law enforcement institutions, and all lawyers should distance themselves from people like Mārtiņš Krieķis. «This would be fair,» said board member of United Multidisciplinary Trade Union, lawyer Alvis Pīlāgs and chairman of Latvian Lawyers Association Rihards Bunka about Krieķis as «person without ethics» in an interview to BNN.

Latvia to request Russia to hand over detained National-Bolshevik Beness Aijo

Latvian office of the prosecutor will ask Russia to hand over the recently detained National Bolshevik Beness Aijo, who had fled Latvia several years ago to join Moscow-supported militants in Eastern Ukraine.

Non-taxable minimum and PIT rates proposed to be changed in context of tax changes

In the context of upcoming tax changes in Latvia it is proposed to change the differentiated non-taxable minimum and PIT, as stated in tax policy guideline changes for 2021 to 2025 available to LETA.

Fox News misinterprets facts by calling Lithuanian cities «the deadliest», LRT says

Although Lithuania stands out among other EU member states with its negative statistics with murders, it is wrong to call Lithuanian cities «the deadliest», as reported by Lithuanian public media fact-checking project LRT Facts, which has called the news reported by American media a «Manipulative/sensationalist headline».

SPRK: level of dissatisfaction with electronic communication services up in Latvia

Compared to 2018, the level of dissatisfaction with service contracts among Latvian consumers had increased 20% last year, whereas complaints over the quality of services had increased 9%, according to information compiled by the Public Utilities Commission on complaints received about electronic communication services.

Do NOT follow this link or you will be banned from the site!