Russian grain imports and transit should be banned, says Latvian minister
Latvian Minister of Transport Kaspars Briškens wants to ban all imports and transit of Russian grain due to the possibility that imports include grain stolen from Ukraine. A total ban could have significant economic consequences for the Latvian rail sector, with losses of up to 40 million euros.
In an interview with public broadcaster Latvijas Radio, Briškens pointed out that there has been talk about the overdependence of Latvian ports and railways on Russian freight for years. Latvia is one of the largest importers of Russian agricultural goods in the EU, second only after Spain. Latvian grain imports from Russia have grown in recent years and are 3,2 times higher than before Russia’s invasion of Ukraine.
While the transit of Russian agricultural goods through Latvia continues, the possibility remains that the imported grains originate from occupied Ukrainian territories, leading Briškens to want to introduce a complete ban. The transport ministry commented on the fact that a total Russian grain ban could lead to major losses for the Latvian ports and rail sector. Ports could be faced with losses totalling 60 million euros, whereas the rail sector may be met with 40 million euros in losses.
Not a new challenge for the sector
Earlier in 2023, the Latvian rail sector reported reductions of 20 to 25 per cent in freight volumes due to reduced trade with Russia. In a move to compensate for lost volumes, the chairman of the state-owned railway company pleaded for Ukrainian grain exports to go through Latvia as its ports and railways have plenty of capacity left. A major obstacle remains pricing; the railway route to the Baltics involves two gauge changes and is very expensive for Ukrainian grain exports.
Briškens stressed that Latvia cannot introduce such a ban on its own and will have to find allies. He has contacted his Baltic and Finnish counterparts to formulate a common position on the matter.
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