This company is part of Ventspils nafta group This company is part of Ventspils nafta group

Court annuls seizure of oil in favour of LRT


Court annuls seizure of oil in favour of LRT

August 10, 2012 / News

Today the Chamber of Civil Cases of the Supreme Court annulled the oil seizure for 109 thousand tons of oil in the pipeline Polotsk-Ventspils, which is owned by LatRosTrans Ltd (LRT). This court ruling is non-appealable.
“I am glad that after a break of nearly two years, which was caused by the arrest of the technological oil, we will be able to again continue the commenced conservation of the oil pipeline, thus liquidating any ecological risks, and the company will be able to restructure its operation in accordance with the current market situation,” the Head of LRT Igors Stepanovs marks out the company’s future plans. Actions to prepare for extraction of the oil and to cleanse the pipeline will be taken up in the nearest time.

Brief history of the case
The technological oil in the LRT pipeline was arrested on December 7, 2010 as a claim securing in the claim of the Byelorussian company Polotsktransneft Druzhba against LRT on ownership rights to the technological oil. On December 9, 2011 the Latgale Regional Court rejected this claim, but since the Byelorussian company appealed the court judgment – the seizure of the technological oil remained in force.
Although the court ruling on seizure of the oil was effective for one and a half year, the Byelorussian party never implemented it. According to the effective legislation – the court ruling on seizure shall be submitted for enforcement and a sworn bailiff shall take the required actions to seize the property. The Byelorussian company ignored this Latvian legal procedure all the time.

About LatRosTrans
LatRosTrans Ltd owns two oil pipelines in the territory of the Republic of Latvia – Polotsk-Mazeikiai and Polotsk-Ventspils, and oil in these pipelines has not been pumped for the last years. In turn the petroleum product pipeline Polotsk-Ventspils currently actively provides transport of diesel.
LatRosTrans Ltd is the largest Latvian-Russian joint venture in the Baltic States. The Russian partner – joint stock company Transnefteprodukt (subsidiary of Transneft) owns 34% of the company’s shares, while 66% of the shares are owned by joint stock company Ventspils nafta (NASDAQ OMX RIGA: VNF1R).