Financial Services, Investments, Latvia

Klavins Ellex cooperates with large lawyers offices that are not represented in the Baltic region but whose customers are interested in investments in the Baltics.

Slaidins said that Latvia's advantage is its geographical location, closeness to Scandinavia. Many Scandinavian markets consider the Baltic states a logical domestic market. For many investors the good air connection to Riga is very important. Latvia has relaitvely good infrastructure and well-educated workforce.

"Some of these traditional advantages might lose their force in the future. For example, concerning laborforce, there is a problem with demography and education," he said.

Slaidins said that he would appreciate if there were officially defined arguments to prove Latvia is the best place for investments. "When sitting at one table with the Estonian and Lithuanian representatives, at one moment there is nothing more to say, especially when Estonians start speaking about transparency of their state administration, the education system and low corruption," the expert said.

Analyzing reasons for the drop of investments, Slaidins said that investors are sensitive to risks. Geopolitical factors are the first risks analyzed by both large and medium companies before making investments abroad. The past years have been full of challenges - occupation of Crimea, Ukraine's problems, Brexit in Europe, also the recent US presidential elections have left an impact.

Speaking about state and municipal institutios, the lawyer said that their clients have faced passive attitude of public servants and they get a feeling they are just disturbing the public servants with their problems. "Investors are communicating among themselves, exchanging experience, sharing their stories about how difficult it is to achieve results in Latvia," said Slaidins.

He also said that predictability in legislation is another important factor. Investors are planning their activities, and it is good if they know what can be expected in the coming five years or so."There is a lack of predictability in Latvia due to the frequent government changes or other reasons," said Slaidins.