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

Latgale Regional Court decision puts in question Latvian sovereignty of assets after restoration of independence, and places future investment at risk

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Latgale Regional Court decision puts in question Latvian sovereignty of assets after restoration of independence, and places future investment at risk

june 21, 2018 / News

LatRosTrans will appeal the ruling of Latgale Regional Court of 7 June 2018, which determined that the oil contained in the LatRosTrans pipeline did not become the property of the Latvian State at restoration of its independence in 1991.

LatRosTrans maintains that the Latgale Regional Court’s ruling is counter to the decision of the Supreme Council of the Republic of Latvia of August 24, 1991 on “Ensuring the economic basis of the Republic of Latvia statehood”, through which Latvia became the owner of all the assets of former USSR enterprises situated inside Latvian territory.  The ruling is also contrary to the position of both the Ministry of Foreign Affairs and the Legal Bureau of Saeima having confirmed that the oil pipelines located in the territory of Latvia and the oil inside them became the property of the Latvian state along with restoration of Latvian independence, and that Latvia has not expressed any binding intention to transfer the oil to Belarus or to its enterprise.

Furthermore, LatRosTrans believes that this ruling also places at risk numerous other assets located in Latvia, as it actually implies that former owners of USSR assets can claim current ownership of other former USSR assets located in Latvia.  Such an uncertain legal environment will essentially deter international investment in Latvia.

As a result of this ruling, LatRosTrans has been ordered to pay a Belarusian company Polotsktransneft Druzhba, Euro 66.8million. If appealed, the ruling will not come into effect until further decisions are taken by the court.

 

For further information:

Elina Dobulane, Communications Consultant

Phone: +371-25959447

Email: edobulane@golin.com