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Tuesday 16.10.2018 | Name days: Daiga, Dinija

Vitol could claim 64 million lats compensation from Latvia

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AS Ventspils nafta (VN) major shareholder Vitol Group has filed a letter to the Prime Minister Valdis Dombrovskis, where it is emphasized that Latvia and Swiss’ agreement on the investment protection has been violated and Vitol intends to request from Latvia a compensation at the extent of 130 million US dollars (64 million lats).

The letter also stresses the compensation sum could even amount to 300 million US dollars (148.5 million lats), reports LETA.

If within a half-year’s time Latvia does not take relevant steps, documentation will be initiated at the international level.

Moreover, the letter referred to several Swiss and Latvian investment protection contract clauses that have been breached. Consequently, the company claims monetary compensation because Latvia has violated its obligations regarding Vitol’s investments in VN and its subsidiaries, explained the company.

It was also pointed out Latvia has an obligation to ensure acceptable, transparent, predictable, consistent and stable business environment without any ambiguity or discrimination, as well as its duty is to protect the company’s legal confidence regarding investments by the Latvian legal system and carrying out other measures.

Moreover, it was also emphasized that in October 2006 the company made a major contribution to Latvia by purchasing through its owned subsidiary Euromin Holdings (Cyprus) Limited 34.75% of VN shares.

Vitol afterwards increased their part in VN to 49.5%. In the letter, the enterprise’s contribution is referred to as considerable, and among one of the biggest foreign companies’ investments in the history of Latvia.

Furthermore, the letter also asks Latvia to enter into consultations on the breach of contract.

The letter was also sent to the World Bank’s International Centre for Settlement of Investment Disputes, the European Union (EU) Commissioner for Economic and Monetary Affairs, the Latvian Investment And Development Agency (LIDA), and to Latvia Ministry of Finance.

The company’s representative, the Chairman of VN Management Board Simon Boddy, previously explained that in case of AS Latvijas Kuģniecība (LK) the rights of foreign investors have been violated, and this is an infringement of the EU regulations.

The Chairman also reminded that Latvia is one of the EU member states and this imposes an obligation to provide investment security for foreign investors. However, LK has not ensured its shareholders rights to express their views, discuss and affect the course of events at the company.


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  1. esti says:

    The letter also stresses the compensation sum could even amount to 300 million US dollars (148.5 million lats), – I guess this would quite destroy Latvia economy..

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