Latvia is one of the few European Union (EU) member states the exports of which to Russia continue growing. According to estimates from LTV News Service, 307 Latvian businesses continue exporting goods to Russia, LSM reports.
LSM notes that the Ministry of Economics refused to provide more detailed information as to which companies continue exporting goods to the aggressor country. The ministry explains this information is a commercial secret.
Information available to the media indicates that in most cases businesses export food products, alcohol, medicines, mechanisms and textile products.
The decision to export goods, exports of which are not prohibited by sanctions, is made by businessmen.
Ministry of Economics Analytics Department’s Director Dace Zīle explains that in the existing geopolitical situation most businesses refuse to export goods to Russia, because residents often sharply criticise companies that stay or decide to return to the Russian market.
Zīle stresses that many international businesses where blacklisted by many consumers for deciding to stay or return to Russia.
Among the examples are French Pernod Ricard, which exports Absolut Vodka, and US sweets brands Toblerone, Milka and Oreo.
Pharmacological companies still continue exporting goods, however. Chemical and Pharmaceutical Association’s board chairperson Vitālijs Skrīvelis believes “Russia’s started war in Ukraine is not a reason to deny residents of the aggressor state access to medicines”.
“If someone tells me that all Russians have to die because Putin wages war against Ukraine by genociding the Ukrainian nation, the same would apply to Russian nation,” he told LSM, adding that the association carefully follows US and EU sanctions.
The alcohol sector, too, continues exporting its products to Russia. In the first five months of 2023 exports to Russia have increased by 165%.
According to the alcohol sector’s association, exports to Russia are performed by western companies based in Latvia.
The association’s executive director Dāvis Vītols stresses that “from an economic point of view, this way money is taken from Russia”.
LSM notes that arguments presented by representatives of various sectors indicate that “medicines are sent to save the lives of Russian citizens, and alcohol – to ruin it. Clothes produced in Latvia are sent to Russia so that employees do not end up unemployed”. Although Lauma Lingerie refused to give an interview, the company still confirmed that it continues exporting its products to Russia. The volumes have not changed since the start of the Russian-Ukrainian war.
The President of the Association of Light Industry Enterprises Guntis Strazds says companies have to fight for their place under the sun, especially because local retailers often refuse to accept products made in Latvia. He mentioned socks as an example. He also said both of the biggest retailers in Latvia – Rimi and Maxima – refused to include them to their assortment of products.
Similar to the alcohol sector, in the clothing, machinery and electrical equipment sectors, some of the exported goods are not produced in Latvia, but are purchased for resale to Russia.
LSM notes that it is not known exactly how many Latvian products are exported to Russia. It is also unclear how many goods are delivered from Latvia to Russia using other countries as mediators.
The Ministry of Foreign Affairs invites businesses that still maintain commercial ties with the Russian market to assess the risks associated with company reputation and sanctions.
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