RIGA (LETA) – Latvian Minister of Transport Vilis Kristopans has expressed serious concern about the Russian decision to suspend discounts for railway freight transport to and from Latvia, the Latvian Ministry of Transport announced to the media.
Kristopans forecast that the Russian decision, effective July 1, will lead to a serious reduction in railway transport, which in turn will have a negative impact on the Latvian economy in general. "Latvian Railways" will lose income necessary to compensate passenger transport losses, thus the company will have to reduce social payments to the state budget as well as the number of employees.
The change of railway tariffs for freight transport to Latvia will also affect states like Kazakhstan and Uzbekistan, who utilize Latvia for transit of their goods.
Kristopans plans to hold a government meeting on Russian economic sanctions against Latvia as well as its discriminatory stance against "Latvian Railways".
