Exec shakeup at Ventspils Nafta

The chairman of the oil company Ventspils Nafta, Olafs Berkis, reportedly resigned earlier this month, prompting speculation of a major management shakeup at one of Latvia's largest companies.

Ventspils Nafta officials would not confirm Berkis' resignation, and he could not be reached for comment.

"We will prepare a statement later, but right now we don't have any comments," said Ventspils Nafta spokeswoman Gundega Varpa.

The Latvian newspaper Diena, quoting anonymous sources, reported June 13 that Berkis is the first among several top executives that are preparing to leave the company.

Diena alleges Berkis' resignation was the result of a disagreement between him and Ventspils Mayor Aivars Lembergs.

But industry sources say that Berkis' resignation has to do with business decisions taken after the opening of the Primorsk oil terminal in Russia, which could hurt business at Ventspils Nafta. The company is almost completely dependent on the shipment of Russian oil, which can now be diverted to Primorsk, outside St. Petersburg.

Ventspils Nafta officials have said that the company's revenues have been hurt in recent years by the drop in world oil prices and moves by the Russian government to limit oil product exports and the cancellation of tariff discounts for oil product transportation by railway to Latvian ports.

The opening of the Primorsk terminal earlier this year has prompted further concerns.

The next in line to leave Ventspils Nafta is Igors Skoks, the company's president.