Cargo, Latvia, Port, Transport, USA

The minister said that Lembergs has a direct or indirect influence in many transport and transit companies, which means that the large players are still feeling some effects from the US sanctions.

"I hope very much that these are short-term effects and we will manage to make sure the cargo flow does not suffer," the minister said.

Linkaits noted that the US sanctions are affecting companies operating in the territory of Ventspils Port, as well as transport companies. Indirect effects can also be seen in Riga Port, he said.

Linkaits reminded that the Transport Ministry will propose a new port governance model by July 1.

As reported, the US Department of the Treasury's Office of Foreign Asset Control (OFAC) on December 9, 2019,  imposed sanctions on a number of natural and legal persons in Europe, Asia and Latin America, including on Latvia's Ventspils mayor Aivars Lembergs, based on the so-called Magnitsky act. 

OFAC listed four organizations that belong to or are controlled by Lembergs - Ventspils Freeport Administration, Ventspils Development Agency, Business Development Agency, and the Latvian Transport Business Association.

To deal with Lembergs' influence in the Freeport of Ventspils, the government in December decided to take over the ports of Ventspils and Riga. 

The Freeport of Ventspils Authority has since been removed from the list of entities sanctioned by OFAC.