Energy, Gas, Latvia, Legislation

Kalvitis admitted that the amendments to the Energy Law submitted to parliament foresees the break-up of the company, and that they were agreed upon by the Economy Ministry together with the company's shareholders, however, the company still has some objections to some points.

''The Latvian state owns 1,167 shares in the company. Meanwhile, the company's private investors own 39 million shares. It would only be normal if the interests of the majority shareholders are respected. It is utopian to think that LG could be completely broken up within nine months. Furthermore, the state has only three months to decide whether it will purchase the infrastructure broken off from LG or not,'' said Kalvitis.

He emphasized that no buyer will wish to begin discussions on the purchase of the separated company before the government has made a clear decision whether or not it will purchase LG's infrastructure.

''If the state purchases the separated infrastructure, it would be possible to break-up the company within nine months. However, if a search begins for an international investor, this would be a complicated process. That is why I call on Saeima to change this deadline, as the break-up of the company cannot be completed in nine months. Furthermore, the European Commission allows this process to be completed within a period of 30 months,'' Kalvitis said.

As reported, Latvijas Gaze will have to become two legally-independent companies by April 3, 2017, of which one will be in charge of the gas transmission and storage system, and the other will be responsible for natural gas distribution and sale, according to amendments to the Energy Law that the government approved in September.