Good for Business, Latvia, Port, Transport, USA

As LETA was told at the Foreign Ministry, US authorities took the decision after intensive talks with the Latvian Embassy in Washington, the Foreign Ministry and other Latvian authorities and after learning about all the measures Latvia had taken in recent days to put an end to the sanctioned individual's influence in the Freeport of Ventspils and the Freeport of Ventspils Authority.

"The Freeport of Ventspils Authority, the Freeport of Ventspils and the companies operating in the port can thus carry on with their work unimpeded," the Foreign Ministry said.

However, OFAC's sanctions against the Ventspils Development Agency, Business Development Agency and the Latvian Transit Business Association remain in place.

Latvian Foreign Minister Edgars Rinkevics (New Unity) shared the statement on Twitter, crediting the Latvian government, Saeima and the Foreign Ministry with securing the sanctions' removal.

In a telephone call with the Panorama news program of Latvian Television, the Latvian foreign minister said that getting the Freeport of Ventspils Authority out of the sanctions list had been Latvia's main goal and that the three "rather artificial entities" that still remain on the sanctions list are unimportant to the Latvian economy and national security, therefore he does not see any reason to put in additional effort to secure their removal from the sanctions list as well.

As reported, the US Department of the Treasury's Office of Foreign Asset Control (OFAC) on December 9 imposed sanctions on a number of natural and legal persons in Europe, Asia and Latin America, including on Latvia's Ventspils mayor Aivars Lembergs, based on the so-called Magnitsky act.

OFAC listed four organizations that belong to or are controlled by Lembergs - Vetspils Freeport Administration, Ventspils Development Agency, Business Development Agency, and the Latvian Transport Business Association.

To deal with Lembergs' influence in the Freeport of Ventspils, the government on Wednesday decided to take over the ports of Ventspils and Riga.

It was also reported that Saeima on Wednesday passed in the final reading a bill to turn over the functions of the Freeport of Ventspils to the newly established state-owned joint stock company Ventas Osta (Venta Port).

The parliament passed amendments to the Law on the Freeport of Ventspils and the Law on Ports. The draft amendments to the two laws were pushed through parliament in a fast-track procedure which only included two readings, both held on Wednesday.

On Tuesday, the Cabinet of Ministers supported the proposal of the Transport Ministry to established state joint stock company Ventas Osta that will ensure management of the Ventspils port.

Ventas Osta's share capital will be EUR 35,000, while the shareholder will be the Transport Ministry. The new company's voting shares will belong to the Latvian state.

Transport Ministry's acting state secretary Dzineta Innusa said that the legal status of Ventspils Freeport will not be changed.

Transport Minister Talis Linkaits (New Conservative Party, JKP) said that the bill will provide legal certainty to the companies who want to continue their work at Ventpils port.

According to the Transport Ministry, in order to ensure uninterrupted operations of Ventspils port and prevent potential negative consequences on cargo transportation and companies working at the port, the Ventspils Freeport Authority should be separated from the port as a territory.