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

The minister informed that the government has received an offer from the Germany company to evaluate buying its shares in Latvijas Gaze.

''The deadline for our decision whether to begin negotiations on the purchase of the company's shares has been set for May 2,'' Straujuma said.

At the same time, she added that the Economy Ministry will prepare and submit an assessment to the government by the end of April.

Economy Ministry spokeswoman Evita Urpena told Nozare.lv that the ministry is currently working on this assessment at the moment, and that the ministry's stance will be known when the report is submitted to the government.

As reported, the German company is planning to sell its stake in Latvijas gaze and to withdraw from the Baltic market altogether, which is why the Economy Ministry is considering buying E.ON Ruhrgas’s 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%.

E.ON Ruhrgas announced it is leaving the Latvian market during a Latvijas gaze shareholders meeting in Riga this past March. The German company refused to comment on its move.

"We are looking at our options," said Vjaceslavs Dombrovskis. "This includes buying the E.ON shares by the state of Latvia. However, I have no news to tell you at the moment as it is the Cabinet of Ministers that will take the final decision," said the minister.

The minister admitted that the government would not like the German company's shares in Latvijas gaze to be acquired by Gazprom or some other lesser-known buyer. "We will be considering the possibility of buying the shares," said the minister.

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.