New package of EU sanctions lists owner of operator of Mere stores, affiliated companies must cease operations

RIGA - The European Union's 21st package of sanctions against Russia also lists Russian businessman Sergei Schneider, the owner of company Latprodukti that operates Mere stores, the Financial Intelligence Unit (FIU) informed LETA.

The FIU explains that the sanctions also apply to Latprodukti and Valiente's subsidiary in Latvia that operates Mere retail chain. The companies must immediately cease their economic activities in accordance with the EU's restrictive measures against Russia.

Schneider has been added to the list of individuals subject to the EU sanctions because he provides material or financial support for activities that undermine or threaten Ukraine's territorial integrity, sovereignty, and independence, said the FIU.

Schneider indirectly owns more than 50 percent of shares in Latprodukti and Valiente branch in Latvia.

The FIU notes that the new package of sanctions targets Russia's energy sector, which is one of the country's most significant sources of revenue, and also imposes new restrictions on the financial sector. The sanctions aim to further reduce Russia's ability to finance its military aggression against Ukraine.

The annex to the sanctions regulation includes 48 individuals and 168 entities. The FIU explains that inclusion in the annex entails the obligation to freeze all funds and economic resources owned, held, possessed, or controlled by these individuals or entities. It is also prohibited to make funds or economic resources available, directly or indirectly, to or for the benefit of these individuals and entities.

Meanwhile, the package also lists 41 more shadow fleet vessels. In order to reduce Russia's revenue from oil exports, the new package of sanctions pauses automatic adjustment of the oil cap price mechanism until July 14, 2027.

The new package of sanctions also lists another third-country oil refinery, as well as certain Russian ports and airports with which cooperation is prohibited.

Several new financial institutions have been added to the list. Furthermore, the new package of sanctions lists an additional 33 credit institutions with which transactions are prohibited, increasing the number of such credit institutions to over 100.

In the new package of sanctions, the list of goods and technologies that could contribute to the expansion of Russia's military and technological capabilities or the development of its defense and security sectors has been expanded. The goods and technologies included on this list may not be exported to Russia or transported in transit through Russian territory.

Given Belarus's involvement in Russia's war against Ukraine, new restrictions have also been imposed on Belarus. Some of these measures are aligned with the new restrictions imposed on Russia. The restrictions, inter alia, provide for the addition of new individuals to the sanctions list if they could contribute to increasing military and technological capabilities of Belarus or Russia. In addition, the export ban has been expanded to cover certain goods, including specific aviation products used in unmanned aerial vehicles.

As reported, Latprodukti posted a turnover of EUR 31.57 million for 2024, up 53 percent on 2023, but made a loss of EUR 71,841 in contrast to a profit the year before.

Latprodukti was incorporated in 2020 with a share capital of EUR 365,000. Mere stores opened in Latvia in March 2021.

According to Firmas.lv, there are 12 Mere stores in Latvia. The stores are located in Riga, Daugavpils, Jelgava, Jekabpils, Liepaja, Rezekne, Tukums, Valka, and Ventspils.