Visit of the former President of Latvia Valdis Zatlers in December 2010, in Moscow and his meeting with the President of Russia Dmitry Medvedev would bring some economic benefits for bilateral relations, such as the growth of Russian investments in the economy of Latvia. Most observers of the preparation of the visit was that the visit to lobbirovalsâ the Russian Ambassador in Riga Alexander Vešnâkovym one and a half years. The visit was very businesslike, but together with the ex-President in the path went 120 entrepreneurs. For the sake of investment was even abruptly to zero degrees, the Russian criticism of unequal access they are accorded status of Russians in Latvia. True if the hopes of the Ambassador and businessmen following this visit?

Quite logically, any investor would expect from this visit, tax advantages, the use of evrofondy in full, and the proximity of markets throughout the EU, but after a year and a half, it was revealed that the visit was not brought visible changes. Not to be crude, consider all of the possibilities offered by the EU investment in the country.

As the newspaper “Kommersant” after parliamentary elections 2011, published material about increased interest of Russian investors, citing the example data from the head of the law firm BDO Zelmenis Liberte & Janis Zelmenisa. From September, according to BDO, Russia well in the ranking of most frequently mentioned sending investors into the economy (followed by Ukraine, Kazakhstan, Uzbekistan and Belarus). According to BDO, main directions of “Russians” investments in Latvia during the period from 1991 to the year 2011 are pipeline transport, monetary intermediation, manufacture of motor vehicles, retail sale of household goods and production of gas (distribution of gaseous fuel using a pipeline). Zelmenis speculated that the main plus for investors is the proximity of the EU and have access to all features of the EU in the form of subsidies, markets and access to finance-even with European level of taxes, etc., and possible risk for investors, Zelmenis called exodus, which strongly affects the demand, as well as the absence of a long-term State programme for the development of the country.

However, it is worth mentioning here that get reliable data on the benefits of funding cannot in principle. The Ministry of Finance says that evrofondy are available to enterprises registered in Latvia, and even offers to get acquainted with the list, but compute on this list which of the enterprises has the Russian capital would be impossible. The most precise information could provide the Latvian investment and development agency. They said only 2 companies with Russian capital master programme of structural funds of the European Union. This AMO PLANT, SIA (LLC AMO PLANT) with the project to establish a structural unit for production of plastic body parts for vehicles and Enterprise Redius RSEZ SIA, uses the operator of BI in Rezekne (operators incubators funded by the structural funds of the European Union)

May not be placed on the famous evrofondah. Territorial presence in the EU is first of all access to the markets of all countries involved. There are a number of enterprises operating in the territory of Latvia, on which telling and Russian Ambassador to Latvia Veshnyakov A.a., in an interview with the newspaper “the Telegraph”. “Russian investments are mainly in the banking, energy, industry, transport and real estate. The Russian capital is present in such large companies as Latvijas Gaze, Lukoil, Itera Latvija, LatRosTrans, Severstaļlat, Riga electromachine building plant (RÈZ), car assembly plant AMO Plant in the city of Jelgava, fish-processing plant in the city of Liepaja Kolumbija, Baltic coal terminal in the city of Ventspils, as well as banks, Latvijas Krajbanka “SMP Bank.”

Therefore the Ambassador company somehow uses a spatial advantage. For example, Latrostrans could pump oil and oil products in all EU countries, using maximum pipeline. On the website of the company learn that By is the “largest in the Baltic Latvian-Russian joint venture that provides transportation of oil and oil products pipeline in the territory of Latvia and Lithuania”. Conclusion: the benefits of being in the EU amounts to pumping the oil in the 2 Baltic countries. The oldest enterprise of JSC “Riga electromachine building plant” (JSC “RÈZ), no links with the countries of the EU, without writing, as well as plant AMO Plant located in Jelgava, which even has a goal of entering the European market. The notorious banking, Bank with Russian capital SMP is located only in Riga with the branch in Liepaja and settlement groups in other Latvian cities. In this scenario, the branch office in Riga in Latvia and branches of the Bank clearly benefits the EU runs out.

The greatest benefit of using his position as the Latvian-Russian “Severstallat”. According to the company, “Severstallat”-is the leader in the Baltic Sea region steel market and increase sales to the markets of Scandinavia, Germany and other countries. Moreover, in 2008, JSC “Severstallat” founded the subsidiary company in Poland, to be closer to customers from Central Europe.

Thus, despite the fact that Latvia is a country of the EU, most companies end up limited to the use of their facilities, as is happening in Jelgava, equipment for sale at best in CIS countries and Russia, but on the European market is not speech. Moreover, the notorious evrofondy used only two businesses, a tax credit. They do not exist.

As for any other positive effects visit Zatlers to Moscow, it looks like they do too. Russian company operating on the Latvian market Itera Latvija has managed to express dissatisfaction with the consequences of the visit Zatlers to Moscow. The head of the company Itera Latvija Juris Savickis reported that in 2012, the talks on gas price for Latvia to be very heavy, due to the fact that the Russian suppliers are dissatisfied with the decision of the Latvian authorities to raise taxes on gas. According to him, the decision of the Latvian Government to raise tax on natural gas obscures achievements in 2010, in the negotiations with Russia on lowering gas prices. Savickis notes that the fact that the President of Latvia Valdis Zatlers and Minister of Economics Artis Kampars, during a visit to Moscow have lower gas prices at 15%, does not affect the inhabitants of the country. “Latvijcam no use of this will not be” Savickis. According to him, the Russian suppliers also are unhappy with the situation. They ironiziruût, that could be the difference between the old and the new gas prices to pay directly to Brussels. Savickis sure when negotiations on new gas prices this will be taken into account.

Everything thing is that March 22, 2011, the Government of Latvia has decided to cancel the 1 July reduced VAT rate for natural gas for households, establishing it at the level of 22%. During the negotiations on reducing the price of supplies of Russian natural gas in Moscow the Latvian side pointed to the excessive dearness blue fuel for Latvian consumers whose incomes fell sharply during the economic crisis.

But the most interesting thing that the Ambassador is set in a positive manner. In the same interview, A. A. Veshnyakov was able to make some other points of successful cooperation of the two countries. He said the transit of Russian goods through the territory of Latvia continues to be one of the main directions of Russian-Latvian cooperation. “Russia is a major partner in Latvia in the field of transit. Through sea ports is not less than 40 million tons of Russian goods (about 70% of the total). Interest in the construction of a Terminal at the port of Riga on shipment of mineral fertilizers, coal and metals were Russian companies “and Ojsc” Ural mountain-metallurgical company. “do business” scandal “Ojsc was known only to representatives of the media and their readers? Since the statement that “Ojsc” appears in the Latvian journalists BakuToday trying to find out is not dangerous if transshipment of mineral fertilizers, but in the process of investigation that the construction of the terminal will destroy historic district of Riga-Kundziņsala. In addition it is certain that thanks to the protests of environmentalists in the French town of Dieppe construction of this terminal was banned. As for the construction of a high-speed railway line Riga-Moscow, and the interest of Russian companies to expand cooperation in the energy sector, and these examples Ambassador also mentions speaking about prospects of cooperation, but it is only a draft, but could not remember the Gogol “Dead Souls”.

Because at this stage to speak of Russian investments, as a constant, it is not necessary. Latvian politicians, such as Dombrava Janis, representing the national block “OFL/TB/LNNK” nothing they can say about the existence of such. Interestingly, and MP Andrey Yudin, “Unity” is also extremely vague commented on cooperation with Russia. As regards this policy as the bison August Bergmanis, union of Greens and Farmers, he said, was not interested in the matter, but something to know about Amo Plant, however, on the status of this plant at the moment does not know nothing Bergmanis. He also suggested that there is a certain construction of ships, which employs many people from former Soviet republics, which is also an investment. He also wondered whether to name the investors own villas in Jurmala and decided that there was little, then you can say datčanah, buy agricultural land as investor. “I don’t feel big investment projects, but perhaps they are,” admitted Bergmanis. It is interesting to note that replying to completely reverse the Latvian investment Pskovskaya oblast Bergmanis also expressed surprise and said, where such information is available. Upon learning that she is Ambassador A. Veshnyakov, Bergmanis praised awareness Ambassador. The Latvian politician does not have such information.

Hence, while we can only talk about the presence of investment and possible further development of this segment of the economy.

In short, the main Russian investor so far remains Vladimir Antonov, infamous, fraudulent schemes in the banking sector. The remaining investors usually says so: Russian capital there, but it may be 10 per cent of the shares, and a 10 per cent could name a major capital? Even Russia’s Ambassador to Latvia Veshnyakov A.a. acknowledges that according to the Bank of Latvia, Russia occupies only a sixth place on volume of accumulated foreign direct investments in economy-510 million (5% of total), that is not enough, according to the Ambassador, for economic cooperation between the two neighbouring countries.