Baltic States – CIS, Energy, Gas, Latvia, Legislation

LG is not revealing what conditions will change in the new agreement, because this is considered a commercial secret. As to the agreement's expected effect on natural gas tariffs, this information will be released after the agreement is signed, although the precise date for signing the agreement is unknown yet, except that the agreement is to be signed by the end of the year, writes LETA.

Juris Savickis, head of Itera Latvija – one of LG shareholders, said that there would be no major changes in the new agreement. Nevertheless, a possibility is being discussed in talks with Russia that Gazprom could introduce a certain provision in the price calculation formula which could reduce the end price 10 to 15%. In this regard, President Valdis Zatlers' visit to Russia is a factor of great importance.

Gazprom representative office in Riga declined to comment Savickis' statement.

Nevertheless, Gazprom representation agreed that prices could reduce for Latvia, although the exact amount of price reduction is unknown at this time.