Latvia plans tax breaks for firms hit by Russia sanctions

Latvia could introduce one year tax breaks for firms most affected by Russian sanctions.

Russia yesterday announced it would place a sanctions on a majority of food products from the West as a retaliation for EU sanctions placed on Russia earlier

Latvian economy minister Vjaceslavs Dombrovskis explained after an emergency meeting yesterday that solidarity was needed amid tough times.

''Everyone must understand that solidarity is needed to help these companies and the persons who work there,'' Dombrovskis said.

''These would be short-term solutions of course. In the medium-term, we must help these food producers to find new export markets. On the other hand, on the political level, we must work together with other countries most affected by the Russia sanction, like Poland, Lithuania, Finland and Estonia, so to convince EU countries that have been less impacted by the sanctions that we need support from them as well,'' Dombrovskis said.

The minister pointed out that companies most affected by the sanctions could be given income and workforce tax reduction as these taxes are easily administered. Dombrovskis added that  tax-breaks could only be issued to companies with the condition that they do not lay-off any employees.

The minister emphasized that an informative campaign would also be launched to support those Latvian-made food products that have been hit with the Russian embargo.

''We will also have discussions with supermarkets and other retail traders on the possibility of specially marking these products, so that consumers know that they are supporting Latvian producers when buying them,'' Dombrovskis explained.

Russian Prime Minister Thursday emphasized that the sanctions would be aimed at a number of countries.

"Russia is introducing a full embargo on import of beef, pork, fruit and vegetable produce, poultry, fish, cheese, milk and dairy products from the European Union, United States, Australia, Canada and Norway," Medvedev told a government meeting in televised remarks.