Latvia, Legislation, Markets and Companies, Real Estate

In this particular case, several construction companies that are among the defendants in the 2013 Riga Castle fire case, appealed against the authorities' decision to arrest their property. Gijs Rusins, attorney for Friteks LV, indicated that the company was having problems paying taxes after its bank accounts were frozen. He said that if the arrest order was not lifted, "we will have to apply for insolvency. You cannot honor your obligations to the state, the subcontractors, and the employees."

Janis Muiznieks, attorney for the Re&Re group company SBRE, told LETA previously that SBRE had its assets arrested in the amount of EUR 715,347, and Re&Re – EUR 946,744.

Prosecutor Agris Skradailis yesterday tried to convince the court to turn the attorneys' request down. Property arrest is not a punishment, even though it does put certain restrictions on the person whose property is arrested, he said. He went on to say that the attorneys' requests die not provide any new circumstances due to which property arrest should be lifted.

Likewise, the Finance Ministry's representative Ivars Grunte said that the losses caused by the fire still had not been compensated for.

As reported, three private individuals have been charged in the case – Ivars Ribs, Juris Kassalietis and Imants Jurkevics, who all worked on the scene. The other defendants are legal antities, four in total, charged with insufficient supervision and control during the Riga Castle reconstruction process.

The fire at the Riga Castle on the night of June 21, 2013, destroyed an area of 3,200 square meters in total. The official estimate is that the restoration of the edifice will cost EUR 6.12 million.