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Latvia Considers Stopping Transit of Manganese Ore to Russia Amid EU Sanctions Debate

Asheraden emphasized that the state services monitor the transit of sanctioned goods very carefully, but manganese ore is not on the list of sanctioned goods. As the Estonian newspaper “Postimees” reported, almost 90% of the two million tons of manganese ore exported to Russia last year were transshipped in Estonia and Latvia. Manganese ore is used in the production of high-quality steel required for gun barrels, armored vehicles and tracks for such vehicles.

“Given that it is a dual-use commodity, we can look to use the EU sanctions mechanism and the government can act more precisely using the existing mechanisms,” the minister said, noting that it is clear that the transit of manganese ore to Russia must be stopped.

On the other hand, commenting on the calls to completely stop economic cooperation with the aggressor Russia, Asheraden stated that such a bill should be seen in the context of the agreements that Latvia has as an EU member state, and member states that would be ready to support Latvia in such a decision should be sought.

Asheraden expressed that the Ministry of Finance has not assessed what consequences the suspension of trade with Russia would have on the ports of Ventspils and Liepāja, for example, but when talking about the railway,

the minister pointed out that the consequences in Estonia were “quite dramatic” – the Estonian railway company, which was ordered by the government to stop serving Russian cargo, had to lay off its employees.

“Latvijas Dzelzceļa” currently receives government subsidies close to 100 million euros per year. I still don’t know what the closure of “Latvijas Dzelzceļa” would mean,” Asheraden said.

The minister expressed that at the moment, looking at how the Latvian economy and inflationary processes are developing, there is no extra room in the budget. “Rather, I am looking at whether we will be able to count on the budget revenues that we have planned,” Asheraden said.

The possibility of breaking trade chains with Russia and Belarus was discussed in the Saeima on Thursday, March 14. The proposal has been submitted to the Defense, Internal Affairs and Corruption Prevention Commission for consideration.

CONTEXT:

After the beginning of Russia’s repeated invasion of Ukraine, the supplies of manganese ore needed for the weapons industry to Russia increased dramatically. As the newspaper “Postimees” reported, since last year some deliveries have been made through the port of Sillame, whose operating company is half owned by the former Prime Minister of Estonia Tītas Vehi, as well as through Latvia.

Preliminary data show that in 2023, Russia imported two million tons of manganese ore, which is a record amount. Manganese ore is used in the production of high-quality steel required for gun barrels, armored vehicles and tracks for such vehicles.

According to the information available to “Postimees”, almost 90% of the two million manganese ore exported to Russia last year was transshipped in Estonia and Latvia. Most such cargoes are transhipped in the ports of Riga and Ventspils, but since last year, manganese ore has also been unloaded and stored in the port of Sillame before the trains go to Russia with it.

The Latvian state railway company “LDz Logistika” is one of several Latvian companies that participated in the transportation of manganese ore to Russia.

International sanctions do not prohibit the transportation of manganese ore to Russia.

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2024-03-14 19:31:36
#Finance #Minister #Manganese #ore #transit #Russia #stopped

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