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According to Abolins, it is said that the state could acquire about EUR 150 million thanks to the company's business activities in the coming five years, whereas the total contribution could amount to EUR 950 million, "It is important that the company resume operating, as it will also fill the state budget," Abolins said.

Meanwhile, Liepajas metalurgs insolvency administrator Haralds Velmers said that the state will successfully escape the insolvency process and retrieve all the funds it invested. Furthermore, the state will be also eligible to receive compensation for the damages.

Abolins added that despite the fact that the state will walk away without facing the music, the company's becoming insolvent was a tough blow to the state. The state must be aware that if it wants to offer support to a company, it has to consider various risks. In case of Liepajas metalurgs, the state was fully aware of all the possible risks at the time, Abolins added.

As reported, Liepajas metalurgs insolvency administrator Haralds Velmers signed the company's sales agreement with Ukraine-registered KVV Group last night, KVV Group spokeswoman Inese Ozolina informed LETA.