Baltic States – CIS, Latvia, Railways, Russia, Transport

As Matiss admitted, there was some concern that the Russian side could reduce transit cargo volumes through Latvia after the now former CEO of Latvian national rail company Latvijas Dzelzcels Ugis Magonis was detained on suspicion of bribe taking.

However, after discussions with Russia's transport minister and the Russian national rail company Russian Railways, it was made clear that there is no reason for concern and that Russia's sudden decision to carry out renovations of train lines to Latvia is not connected to anything related with Latvia's domestic affairs, including the arrest of Magonis.

Matiss pointed out that renovations of rail lines in Russia are very necessary, as there are sections which are in a very bad state and where the maximum speed is just 30-km per hour. The Latvian transport minister said that Latvia should be happy that these renovations are taking place, because this means that there will be more cargo shipments from Russia in the future. ''Nobody renovates rail lines if they plan on reducing cargo volumes,'' said Matiss.

The Russian side has emphasized that all economic commitments remain in force. Matiss also went on to say that the change in management at Russian Railways will impact processes in Russia, but not relations with Latvian partners.

He also pointed out that cargo transit between Russia and Latvia increase by eight percent this August when compared to the same month last year.