After the election of Vladimir Putin, there has been much conjecture
on whether Baltic and Russian relations will survive. Part of the
forum's goal aimed at solving some of these problems in the region
and concentrated on developing transport in the Baltics.
Pipelines used for the transport of oil and oil products need to be
developed. Latvia transports 13 percent to 15 percent of all Russia's
oil exports, and there is no reason we cannot increase the amount of
transit business with our largest neighbor, said Anatolijs Gorbunovs,
the Latvian minister of transport.
Over 200 companies from 13 countries including transport experts,
politicians and businessmen attended the forum. The Latvian ministers
of foreign affairs and transportation both addressed the audience at
the opening of the forum. Both ministers talked of the possible
benefits Latvia could bring to its economy to the Russian economy.
"It should be explained that the proposals of Latvia joining the
European Union and NATO mean there are no intentions of turning our
backs on Russia," said Indulis Berzins, the minister of foreign
affairs.
Berzins did however propose that Latvia should also concentrate on
economic trade with western and CIS countries, said Zanda Grauze,
spokeswoman for Berzins.
Andris Maldups, spokesman for the Ministry of Transport, said to
entice global transport and transit is very important, but Latvia
relies on transit transport with mainly the East.
"Countries such as Belarus, Kazakhstan and Uzbekistan are very
important for Latvian transit. The importance of Russia needs not to
be stated. Western transit transport is different. They have their
own affiliates here in Latvia, and that is more a global issue. Of
course, we benefit from them transporting cargo through Latvia, but
it is done through large private companies," said Maldups.
The redevelopment of the port in Ventspils and the free economic zone
legislature being passed on Riga's port were widely discussed. At the
forum Latvia presented a viable alternative for Russia to save money
in transit cargo costs. Presentations were given to use the port of
Ventspils for oil transportation and to transport goods' to Russia
through either Ventspils or Riga's port. Maldups said Russia could
save up to $16.6 billion by exploiting Latvia's ports for transit.
Austris Caunitis, a representative from the Ministry of Transport,
said Russia could save money not lose money by using our port systems.
"A Russian spokesman from St. Petersburg City Council [Boris Usanov]
said Russia would lose $3.3 billion if they used the Baltics for the
transit of cargo. The money they are using for the upgrade of their
ports in St. Petersburg would be better spent to transport cargo
through the Baltics," said Caunitis.
"Russia says it is losing money by transporting goods through Latvia.
Ventspils already has the infrastructure in place to handle their
supply of trade," said Maldups. "Ventspils could become very
specialized in the transportation of oil and oil products."
Monty Akesson, the president of the Foreign Investors Council in
Latvia, also said the Ventspils Port could be very lucrative for
Latvia, while saving Russia transportation costs.
"Russia will find Latvia enticing in the future, even with the
improvements to its own ports. A more affordable alternative for
Russia would be not to use its long ships for the long journey from
Europe to St. Petersburg, across the top of Russia, but to use
Ventspils port. Their container terminal in years to come will be
equal to the container terminal in Riga," said Akesson. "The logic of
business will stop the bickering between Latvia and Russia, and 'the
slagging matches' will soon die down."
Another important point Gorbunovs raised at the conference was the
reintroduction of the Latvian-Russian Intergovernmental Commission.
The Ministry of Transport has already established its own commission
in Latvia and is now waiting for Russia to do the same.
"The commission only had a short life span. It was set up in the
autumn of 1997, but unfortunately after a government change in Russia
it dissolved. Gorbunovs sees this as a way to improve transportation
of exports and imports," said Maldups. "During the time the
commission operated, eight to nine themes had been decided upon. Only
the initiating of these developments was needed. This would be a
great opportunity to improve our countries' relations and to work
together. The biggest bonus is the commission would not have to start
from scratch because points have been brought forward already and
discussed," said Maldups.
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