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

Some experts have said that German company E.ON Ruhrgas 47.23% stake in Latvijas gaze could cost as much as EUR 600 million, but Straujum commented, "If we take the decision, we will find such money. But it does not mean that the money will be allotted from the state budget."

Straujuma also said that EUR 600 million was an exaggerated price. She said that the German company had made an offer to the government, but declined to reveal how much E.ON Ruhrgas wanted for its shares in Latvijas gaze.

As reported, E.ON Ruhrgas announced leaving the Latvian market during a Latvijas gaze shareholders meeting in Riga last week. The Economy Ministry is currently considering buying E.ON Ruhrgas interest in Latvijas gaze or allowing Russia's Gazprom to become a majority shareholder in Latvijas gaze. At the moment, E.ON Ruhrgas owns 47.2% of Latvijas gaze shares, Russia's Gazprom has a 34% stake and "Itera Latvija" 16%.

The nominal value of Latvijas gaze shares is EUR 1.42, however, the company is generating significant profit, which means that the actual price for E.ON shares in Latvijas gaze should be much higher. Also, it is the other Latvijas gaze shareholders that have the right of first refusal on the shares, and only if they refuse to buy the shares could the state apply for becoming a Latvijas gaze shareholders.