bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 27.01.2020 | Name days: Ildze, Ilze, Izolde
LatviaLatvia

LNT Chairman Rudolf Meroni: the Latvian State must protect its national interests

FaceBook
Twitter
Draugiem
print
(+3 rating, 3 votes)

Rudolf Meroni, the Chairman of the Supervisory Board of Latvija naftas tranzīts (LNT) the second biggest Ventspils Nafta shareholder cannot understand, why the Latvian government does not defend the national interest and resources in the case of the LatRosTrans crude oil pipeline.

BNN News from Baltic and Latvia: Rudolf MeroniLNT was for many years and continues to be one of the major players in the Latvian oil transit industry. Beside Vitol with 49%, LNT owns 39% of Ventspils Nafta. However, 11% of the Ventspils Nafta shares, formerly owned by LNT, are still in dispute. In 2006 disloyal managers defrauded these shares from LNT. 7% of the defrauded shares miraculously re-appeared in the Vitol portfolio. A criminal investigation is still going on in several countries, even though without much tangible results so far. In case LNT is successful in these proceedings, it will regain its position as the controlling Ventspils Nafta shareholder.

Over the last few weeks, LNT was unpleasantly surprised by the unilateral actions of Vitol. The LatRosTrans management, directed by Vitol, decided to empty the crude oil pipeline and, thereby, turning it practically into scrap. Vitol took this decision without even a single consultation with LNT. LNT vigorously resists these actions, even more because the ownership of the crude oil in the pipeline is not resolved. LNT believes, the oil in the pipeline does not belong to LatRosTrans, as it never figured in its balance sheet. Alvis Haze, Member of the LNT Supervisory Board pointed out: “If you want to earn money by using your truck for transportation, you will not sell its engine to get some short term cash to distribute dividends. Before we can even dream of using the pipeline again, somebody will have to invest 80-100 million USD to replace the missing oil, beside all the unresolved technological problems.”

The failure of the Latvian government to take appropriate action in the context of the oil pipeline issue is difficult to understand for LNT. The LNT Chairman Rudolf Meroni stated: “We are surprised that the Latvian state has not even begun to address the situation of the pipeline. The crude oil pipeline is one of Latvia’s strategic assets, which the country should protect with all forces. And even more so, because Belarus, one of Latvia’s key strategic partners in the transit business, is opposing the current activities regarding the pipeline. Moreover, neither the management of Ventspils Nafta nor LatRosTrans approached LNT to determine the view of the second-largest shareholder regarding steps of crucial strategic importance. Vitol’s unilateral actions significantly change the opportunities of Ventspils Nafta in the oil transit business. “Nobody asked our view about these steps. LNT, one of the largest shareholders in Ventspils Nafta, interested in the Ventspils business development, has been ignored by Vitol, to take such a significant and strategic decision.” said Rudolf Meroni.

The Latvian authorities must address the current situation and the resulting future consequences. Vitol’s actions are not based on a wise long-term business strategy. Only greed can lead to such unreasonable actions. The restoration of the crude oil transit through Latvia in the future will involve huge investment. “The question is simple: does Latvia want to participate in the crude oil transit or not? Belarus is ready to co-operate with Latvia in the oil transit, moving a part of Venezuela’s crude oil through Latvia. Nothing, however has been done about it from Latvian side – to the contrary, it seems that one of the major Latvian trumps in the competition for the Venezuela – Belarus oil transit has been given away for a shortsighted financial advantage” said Aivars Gobins, the LNT PR Director.

LNT calls on all parties to return to the negotiation table and try to resolve the situation according to normal business practice in the strategic interest of Latvia and Ventspils’ oil transit business.


Leave a reply

  1. Piter says:

    Has Latvia ever protected its national interests?

  2. Tiger says:

    Your awnesr shows real intelligence.

Swedbank: 27% of Latvian residents believe they are aware of tax benefits

Only every fourth Latvian resident believes they are fully aware of taxes and benefits applied to their wage, according to results of a study performed by Swedbank Institute of Finances.

On Auschwitz liberation anniversary, calls for memory of victims, survivors

In the former Auschwitz concentration camp, where 1.1 million people have been exterminated, a memorial event was held on Monday, January 27, to honour the camp’s liberation and its survivors.

Court maintains KNAB decision on Dienas Bizness’ penalty over hidden campaigning in force

Riga City Vidzeme Suburb Court has decided to maintain the decision made by Corruption Prevention and Combating Bureau in relation to penalizing LLC Dienas Bizness for hidden political campaigning prior to 13th Saeima unchanged, as LTV was told by the court, writes public media portal lsm.lv.

Baltic Express: transit situation would benefit from a change of Latvian Railway’s policy

It is possible to reduce the freight volume decline in Latvia by rapidly and significantly reducing Latvian Railway’s service prices, which is possible by improving the cost effectiveness of LDz operations, says Baltic Express board chairman Māris Bremze.

Minister: the state may have to invest in port terminals to secure freights

It is possible state should invest in port terminals to secure, for example, freights from Belarus, said Latvian Transport Minister Tālis Linkaits in an interview to LTV programme Rīta Panorāma, commenting on potential cooperation with Belarus in transportation of oil products.

In China, number of corona virus victims reaches 81, cases confirmed – 2 800

In China, the number of people, who have been killed by a serious outbreak of anew coronavirus have reached 81. The number virus cases, however, is much higher – 2 827.

Life in UK after Brexit day to stay the same for transition months

The United Kingdom will on Friday, January 31, begin its way out of the European Union. For the 11-month transition period, everyday is expected to stay the same as as British government negotiates an agreement on future relations with the bloc.

Officials avoid giving a clear answer in regards to state grants for Latvian Railway

State officials avoid giving a clear answer as whether or not Latvian Railway could end up in a situation when the company may require state budget assistance, as reported by LTV programme De Facto.

NBA star Bryant’s helicopter flew in poor weather conditions

The U.S. helicopter crash, which took the lives of NBA basketball legend Kobe Bryant, his daughter and seven other people, took place in conditions that the local police considered too dangerous for flying.

Economic Police may investigate Olainfarm’s council’s operations during Rebenoks’ term

Latvian State Police Economic Crimes Enforcement Unit may have commenced a criminal process over operations of pharmaceutical company Olainfarm’s council for the time when Pāvels Rebenoks and lawyer Mārtiņš Krieķis were in charge of it, as reported by TV3 programme Nekā personīga.

Weather in Latvia to remain warm and rich with precipitation in last days of January

Weather in Latvia will be dictated by several cyclones this week. This means rain, snow and wet snow. Wind will draw in from the south, making it so that air temperature at the end of January remains uncharacteristically high for the winter month, as reported by Latvian Environment, Geology and Meteorology.

After Turkey earthquake, 45 people saved from rubble

Rescue workers in Turkey are starting to reduce the scale of their efforts to find survivors after an earthquake on Friday, January 27, took the lives of 36 people.

VDD official: no new office would mean slowing the service’s development

Not constructing a new office building for the Latvian State Security Service on the chosen territory in Teika – the former cycling track Marss – would delay the service’s development, VDD vice-chief Ēriks Cinkuss told Latvijas Radio on Monday, 27 January.

Week in Lithuania: Transport Minister breached law, Vilnius University elects new rector, Polish bank invited

In Lithuania, the top news stories were Transport Minister being found guilty over the violation of law, President Nausėda inviting Poland’s Pekao bank to Lithuania and Vilnius launching its ecological initiative.

BNN summary of the week: Moneyval report. Scandal over VDD building. Žagars and Kairišs at the helm of Dailes theatre

It seems the repair efforts for Latvia’s financial market have paid off. Moneyval published its report this week, which concludes Latvia has successfully completed recommendations for tidying its finance sector. There are still areas in need of improving, but there is room for hope Latvia will not be grey-listed.

Development of areas along Rail Baltica line will require investments worth EUR 300 million

In order to implement infrastructure development projects along Rail Baltica line in Riga, it will be necessary to secure investments up to EUR 350 million in the next ten-year period, as reported by Riga City Council chairman Oļegs Burovs.

Olainfarm shareholders fail to convene due to lack of quorum

Because of the lack of quorum, the extraordinary meeting of Olainfarm shareholders originally scheduled for Friday, 24 January, did not take place. It was planned to discuss changes to the company council during this meeting, as reported by the company’s representative Ieva Lapiņa-Ennīte.

EY: investors more optimistic about Latvia’s economic competitiveness

Last year, investors’ opinion of the competitiveness of Latvia’s economy improved for nearly all indexes, as reported by EY Latvija representatives.

Bulgaria accuses three Russian citizens for poisoning of arms producer

Three Russian citizens have been charged by Bulgaria over the attempted murder of an arms producer and another two Bulgarians using a poison. One survivor believes there is a link with the poisoning of the Skripals in the United Kingdom.

Ignoring sanctions, Ventspils City Council approves budget created under Lembergs’ watchful eye

In spite of sanctions imposed by USA, Ventspils City Council approved the city’s budget for 2020, which came to be under absolute influence from Aivars Lembergs, on Thursday, 23 January, BNN was told by opposition deputy Aivis Landmanis.

Estonia eyes one-year prison sentence for first-time drunk drivers

Estonian government ministers have proposed harsher sanctions for drunk driving. Their initiative comes after three people got killed in a crash, where a heavily intoxicated driver was involved.

Latvian residents trust National Armed Forces the most and the Saeima the least

Latvia’s residents trust the country’s National Armed Forces and the president the most and the Saeima the least, according to the survey performed by Latvian National Security Academy’s Security and Strategic Research Centre.

In China, coronavirus claims more lives as transport limitations put in place

The Chinese outbreak of a new strain of coronavirus has reached the death toll of 26 people, meanwhile, authorities are trying to keep it from spreading introducing transport movement limitations in at least 10 cities.

Information about VDD new office building’s construction costs is a state secret

Although some media have mentioned different amounts of money the construction of a new office for the State Security Service at the location of former Marss cycling track may cost, the service reports that this information is considered a state secret.

Kariņš: Latvia is no longer the younger brother – our country’s voice is heard

Latvia is no longer the younger brother on the international arena – our country is heard and its opinion is taken seriously, said Latvian Prime Minister Krišjānis Kariņš at annual foreign policy debates on Thursday, 23 January.


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