Firms receive 5 million euro boost to tackle Russia sanctions

Latvian firms have been granted tax breaks in an effort to counter Russian food sanctions. An additional 5 million euros has also been designated in to finding new export markets. 

Latvia's Economy Minister Vjaceslavs Dombrovskis said companies with more than 10 percent of their total sales volume going to Russia would qualify for the tax breaks.The same applies to the companies suppliers.

"We will use a new approach to entering new export markets. Previously, the Investment and Development Agency of Latvia provided funding for experts' short visits to conferences and exhibitions in foreign countries," Dombrovskis explained.

"The new approach stipulates funding experts' presence in a target country for a longer period of time - two to three months," 

The government also decided to award loan guarantees to the companies affected by Russia's sanctions. Dombrovskis said that up to 40 million euros is the maximum sum that can be diverted to loan guarantees, whilst the maximum sum for one company cannot exceed EUR 1 million.

Latvian Prime Minister Laimdota Straujuma said that all the necessary measures would be taken in the farming sector for the government to issue loan guarantees and distribute subsidies to cover loan interest payments. Latvian officials will also turn to the European Commission, asking that intervention prices be increased in European Union countries.