EU – CIS, Investments, Latvia, Russia, Transport

Earlier this week, Daugavpils City Council's committees began discussing underwriting a loan that Daugavpils Satiksme would take for the purchase of new trams. Daugavpils Satiksme's head Romans Savickis told the local government's committees that the tram deal had been approved by the Foreign Ministry and the Security Police. LETA has been unable to get in touch with Savickis so far.

The new trams will cost more than 4 mln euros altogether. Daugavpils Satiksme has asked the city council to underwrite a 1.7 mln euros loan for the company.

Daugavpils Satiksme explained that the tram rolling stock was worn out and the repair costs had been growing with every passing year. In 2016, the company spent 28,000 euros on tram repairs, the amount increased to 49,000 euros in 2017. The new trams will also consume less electricity, the company said.

The final decision on Daugavpils Satiksme's tram deal will be made by Daugavpils City Council.

As reported, TV3 television reported this past April that the Constitutional Protection Bureau had found out that Daugavpils City Council was planning to buy trams from the Russian military-industrial complex.

The television said that Lithuania-registered Railvec UAB had won a tender to supply new four-axle trams, made in Russia's Tver, to Daugavpils for 4,953,000 euros.

TV3 reported that the trams were manufactured at a plant owned by Russia's Transmashholding company. Besides making locomotives and rail equipment, the plant also produces weaponry for the Russian military, like launch facilities for intercontinental missiles. The company is said to be extensively involved in Russia's military procurement. Metrowagonmash, which is part of Transmashholding, makes parts for Russian air defense systems Buk, Tor and Tugansk, and a plant in Kolomensk makes diesel engines for Russian naval submarines, TV3 said.