Baltic States – CIS, Latvia, Legislation, Port, Transport

He noted doubt about the decision being economically substantiated and suggested that in fact political reasons were behind it.

"If the Latvian ports, carriers and the railway were able to offer competitive tariffs, companies will choose the services that are cheaper and of higher quality and would not choose more expensive services only because of some initiative or patriotic feelings," Riekstins said.

But Latvia must be prepared for the Russian initiative to re-direct its cargos to own ports, the ambassador said. "The Transport Ministry is working with other foreign partners in the former Soviet Union as well as in China and other Asian countries in order to attract new cargos," he said.

As reported, the Russian companies have been instructed to re-direct to Russian ports all bulk cargos currently being handled by the ports in the Baltic states by 2020.