Energy, Financial Services, Gas, Gas Market , Latvia

Asked whether Makarov would be able to purchase shares in both companies and whether he meets the Latvian Energy Law requirements, Savickis said that it is being studied right now.

Savickis did not disclose the sum of the possible deal, just said that this might require months.

According to Lursoft business database, Makarov is the owner of Cyprus-registered Areti International Group Limited.

In 1992 Makarov established Itera gas company that developed into an international energy group and was a co-owner of Itera Latvija gas importer. In 2013 Itera oil and gas business was sold to Russian gas company Rosneft, while the other group’s part – Itera International Group of Companies changed the name to Areti International Group.

As reported, Conexus Baltic Grid was founded late last year to take over natural gas storage and transmission functions from Latvijas Gaze. The company’s share capital is EUR 39,786,089 and it consists of 39,786,089 shares with a face value of EUR 1.

Latvian commercial TV3 channel reported earlier that the value of Conexus Baltic Grid shares might be EUR 200 mln.

The largest shareholders of Conexus Baltic Grid are Russian Gazprom (34.1%), Marguerite Fund (29.1%), Germany's Uniper Ruhrgas International GmbH (18.3%t) and Itera Latvija (16%) or the same as Latvijas Gaze shareholders. But the shareholders, with the exception of financial investor Marguerite Fund, have to dispose of their shares in Conexus Baltic Grid by the end of 2017 so that the new shareholders would not be related to Latvijas Gaze.

With the opening of the Latvian gas market on April 3, the amendments to the Energy Law giving the Latvian state the right of first refusal in respect to purchase of shares in Conexus Baltic Grid took effect.