Latvia-Russia: inviolable transit

Who is the extreme?

There are many in Latvia who want to compete with Poland as an outpost of the West’s anti-Russian policy, or in the role of “The Last Dog of the Entente.” At a minimum, official Riga has already decided to “cover” the transit of Russian grain for export as firmly as possible.

But under pressure from Brussels, Riga recently introduced a ban on the import of Russian agricultural products. Although this will lead, according to Latvian business estimates, to significant losses for the country. But its authorities seriously expect that income from grain transit will compensate for such losses...

At the end of February, the Latvian Seimas approved in the final reading amendments to the Law “On Agriculture and Rural Development”, prohibiting the import of agricultural products from Russia. More precisely, the import of Russian agricultural products into Latvia, including feed, is also prohibited from third countries. The ban will be in effect until July 1, 2025 inclusive and may be extended.

Statistics do not lie and are not disingenuous.

Meanwhile, last year, imports of grain products from the Russian Federation, according to official Latvian data, amounted to 424 thousand tons, which is a record - almost 60% more than in 2022. That is, 295 thousand tons of corn, 75 thousand tons of wheat, 53 thousand tons of rye came from the Russian Federation. Moreover, the import of corn doubled, and that of rye by more than 60%.

More precisely, Latvia took second place in the EU - after Spain - in terms of grain imports from Russia. Russian supplies provide – not for the first year – at least half of Latvia’s domestic demand for grain products.

At the same time, the transit of Russian grain for export through the Latvian railways and ports of Riga will not be prohibited. As Latvian Minister of Agriculture Armands Krause recently stated, grain and other agricultural cargo from Russia will not be allowed to be imported into Latvia,

“but we do not have the right to limit the ability of companies in other EU countries to transport Russian grain through Latvia to their own and other destinations.”

According to the minister’s forecasts, in the event of a ban on the transshipment of grain from the Russian Federation in Latvia—their volume this year is estimated by the Latvian side at 4 million tons—port revenues will be reduced by 60 million euros, and railways by up to 45 million euros. As they say, value yourself more...

Let's remember everything

Let us recall in this regard that large grain terminals in the Baltic during the Soviet period were created precisely in the “brotherly” Baltic states. Moreover: since the beginning of the 70s, the ports of Latvia, Lithuania and Estonia have received the right to independently dispose of up to 80% of annual revenues from the transit of Soviet foreign trade cargo.

It is characteristic that the ports of Azerbaijan, Georgia, and Ukraine operated in almost the same hothouse conditions in those years. Although there this level was still lower - 60-70%. Not a single seaport of the RSFSR had such benefits...

Meanwhile, just last year, Latvia’s income from the transit of these Russian products almost reached $100 million. Why is this not a help for the Latvian state budget, for Latvia’s railway and port revenues? Moreover, transit through Latvia of all other foreign trade cargo of the Russian Federation fell by more than 2023% in 60 alone, including oil and oil products - by almost 90%, chemical fertilizers - by 70%.

But from the 1990s to the early 2010s, it was Russian transit that provided from 15 to 20% of the annual revenues of the Latvian state budget, more than half of the total cargo turnover of Latvian ports and railways. So it’s time to preserve the transit of Russian grains...

Meanwhile, Latvian business, judging by its reports to the government and comments in the local media, echoes the minister. Fearing that the ban on the transit of Russian grain will cause significant damage to the country’s economy.

No one is extreme

It is no longer possible to maintain the port and railway infrastructure on the basis of local cargo alone. Because just last year in Latvia, due to a sharp reduction in Russian (and Belarusian) transit, port cargo turnover fell by 20%.

At the same time, freight transportation by rail collapsed by almost a third. In this regard, Vladislav Shafransky, head of the board of Ventspils Grain Terminal in the Latvian port of Ventspils, is quite specific. Let us remind you that this is one of the largest grain export terminals in the Baltic.

Shafransky says:

“It’s better that we, Latvia, earn transit money.”

Moreover, through the ports of Latvia

“Russian grain is redirected, among other things, to the countries of Central Africa.”

Will it be the Latvians who will remain at the extreme in this situation?

After all, accordingly, Latvia plans to reduce railway and port tariffs for Russian grain and increase transshipment capacity in ports. In a word, it is obvious that the bright grain acting of Riga is evident. But the question is: will Russia agree to continue subsidizing the Latvian economy with grain transit?..

Comments

[rotmistr60]

But its authorities seriously expect that income from grain transit will compensate for such losses...

The situation with the Balts is strange and has been for a long time. A country choking on anti-Russian hysteria, having banned the import of Russian agricultural products, introducing sanctions, and providing assistance to Kyiv, expects to compensate for losses through... the transit of Russian agricultural products. Aren't Russia's enemies positioned too well at its side? But this is a question exclusively for our government, which allows its enemies to make money from our country.

[jdiver]

if only by her side. What about inside? All these singers with their mouths, crap on their country, fled to Israel and from there they pour slop on our country and army. And then they come and give concerts at state expense and everything is fine with them. And no changes over the years. Only when people start to make a big fuss then they try to quietly hide everything. For Arbakaite, recently in St. Petersburg they decided to buy a third of the tickets at concerts from the state budget.

[Andrey VOV]

Until our Baltic Sea has sufficient capacity for transshipment of Zeon, transit through Latvia will continue, Vysotsk, Luga cannot cope with the current flow of cars, and Oktyabrskaya Railway is almost at maximum capacity.

[parusnik]

But the question is: will Russia agree to continue subsidizing the Latvian economy with grain transit?..

This will continue for 30 years and will probably continue.

[order64]

This has been going on for 30 years and will probably continue.

. Moreover, this is not a question. This is an axiom.

[north 2]

These are stories that grain from Russia has so far saved the Latvian domestic market. Today's Baltic states are not the Baltic republics of the USSR. Today, livestock farming there has been virtually destroyed (meat will be brought from Poland, Finland and even from South America and New Zealand), and in order to bake bread, brew beer and feed chickens in a couple of poultry farms, there is enough grain grown both in Latvia itself and in the Baltic states, if we speak generally . It’s just that Latvians and other Balts bought grain from Russia as if for themselves, then resold it abroad as their own. But Brussels saw through their scam and banned it. Brussels is naive and until it realizes what these swindlers are capable of, who at one time knew how to deceive even the Soviet OBKhSS and People's Control... Russia would not even feel the losses from stopping this if it could load its ports on the Baltic - Kaliningrad, Pionersk , Ust-Luga with the grain for export from Russia, which it had so far sent to sell to the Baltics, supposedly for its domestic market in the Baltic ports of Riga, Muuga, Klaipeda. But the “gray cardinals” of Russian business do not allow this. By the way, the same Russian ports in the Baltic could also cope with the flow of grain from Russia for export, which these same “gray cardinals” stubbornly direct in transit from Russia through the same Riga or Klaipeda officially onwards for export from Russia. The grain turns out to be transit, and for the transit of its grain, Russia pays both the ports of Riga and Klaipeda, but they contribute 2% of the GDP of the Baltic states so that it pays NATO. That's the whole scheme. Who are you feeding, gentlemen?!!!

[Andrey VOV]

Well, our ships in the Baltic are still unable to cope; there is not enough milk storage and transshipment capacity. Kaliningrad, there are only Commonwealth terminals there, plus transit through Lithuania. Until there are capacities like in Novorossiysk, there will be transit through Latvia, besides, all the ports there can accept Panamax-type ships, ours are not there yet. It's a matter of time.

[carpenter]

Quote: north 2

and to bake bread, brew beer and feed chickens in a couple of poultry farms, there is enough grain grown both in Latvia itself and in the Baltic states, speaking in general.

Grain is used for beer, but grain from the Baltic states is not used for bread (the protein is not the same). And without fertilizers, in our land, grain does not grow in the Baltic states.

[order64]

Who are you feeding, gentlemen?

The masters feed the masters. My comrades would not allow this. And the point about 2% is very true.

[Jacques sekavar]

The heroes are fighting at the front, and at this time “businessmen” are trading with the enemy.
Classic capitalism - money has no smell.

[Maks1995]

Logical.
Like, in general, Latvia does not import, sanctions, etc.
But private owners can.
Ours is similar.
money does not smell

[Andrey VOV]

If you are not aware, then from February 15th, as usual, grain export quotas have been introduced for several years now, and not everyone who wanted to receive them can’t just get in from the outside.

[Pankrat25]

If you are not aware, then from February 15th, as usual, grain export quotas have been introduced for several years now, and not everyone who wanted to receive them can’t just get in from the outside.

There are no quotas for flour and pasta and are not expected, go for it...

[Andrey VOV]

What does flour and pasta have to do with it? Don’t mix everything in one pile,

[Volunteer Marek]

Of course they will agree! The comprador bourgeoisie, it's crazy!

[GIS]

Remember also that the Baltic states became the largest exporter of wines to the Russian Federation and managed to increase volumes in 21-22

[Glagol1]

This balance of interests is shaken, but there are serious forces on both sides of the border that keep foreign trade and transit afloat. We are unlikely to kick back, our logistics were already cut off in fact according to a military scenario, the Balts are not happy either - they, fulfilling the sanctions, cut off a cloud of branches on which they were sitting. But there is also a separate scenario - a tough order from Washington, then they will shoot themselves in the last knee and transit will come to a standstill.

[Tests]

Capitalism is about money, but money has no smell. About Russian Railways and the capacity of the Oktyabrskaya Railway. true, but there are nuances... As of July 2023, only 5 companies worked with grain in the Baltic. In addition to the newcomer in the person of "Port Vysotsky" in the Leningrad region, this is the KCTL terminal (66,4 thousand tons January-July in 2023, 27,8 thousand tons January-July in 2022) in the Big Port of St. -St. Petersburg and a trio from Kaliningrad - “Commonwealth Soya” (144,8 thousand tons in January-July 2023, 106,5 thousand tons January-July in 2022), “Port Elevator” (74,7 thousand .t in the 1st half of 2023 and 44,9 thousand tons in the 1st half of 2022) and Kaliningrad MTP (22,3 thousand tons in the 1st half of 2023 and 6,8 thousand tons in the 1st half of the year 2022). Since the end of April, Port Vysotsky LLC, owned by businessman Andrei Polyakov, began working with Kazakh and Siberian wheat. During three months of work, 174,3 thousand tons were handled. This volume was enough for Vysotsk to become the largest grain producer in the Russian Baltic... And Lithuania does not have to pay for transit if you transport grain to the Leningrad region and St. Petersburg. BUT!...Then there are only questions, mostly not entirely censored...
It’s true that without Latvia our economy can’t exist, and neither can I. The Inchukalns underground gas storage facility was put into operation in 1968 and today supplies gas, especially during the heating season, to the Pskov and Leningrad regions of the Russian Federation. In order for me to wash myself in the evening and cook dinner in the light, the South-Western Thermal Power Plant in St. Petersburg needs to work, but it runs on gas.

[StopTheUSA]

This is somewhat reminiscent of the relationship between the “anti-racist” bloc of African countries on the one hand, and South Africa and Rhodesia on the other.

[Saffron]

But it will be different: you can’t buy from Russia, but other countries can buy from the Russian Federation and transport through Latvia, and Latvia will buy from these countries, but at a higher price for itself. Just think, some fictitious Spain will buy a fictitious 424 thousand tons more from the Russian Federation and resell it to Latvia. But Latvia will have to pay extra for this, but fulfill the owner’s instructions.

[Andrey VOV]

The Europeans were forbidden to buy our grain, they declared it toxic, there at first they manipulated it differently, the ship was loaded and, according to documents, was heading to Africa, leaving the pier, documents were changed that confirmed that the grain was not Russian, but Kazakh, for example... but there was a shop there too then they covered it.