Former US ambassador intends to help Riga Fertilizer Terminal break free of sanctions

Former US ambassador to Latvia Charles Larson plans to invest into Riga Fertilizer Terminal LLC, which is currently under sanctions. His plan is to help the terminal break free of sanctions, as reported by TV3 programme “Nekā personīga”.

Currently 51% of shares in this company is owned by Russian oligarch Dmitry Mazepin. 49% is owned by Riga Port, a company owned by Saeima deputy Ainārs Šlesers’ and ex-politician Andris Šķēle’s families.

As the programme was told by Šlesers, Riga Fertilizer Terminal does not operate at the moment. There is also an ongoing lawsuit to get rid of Russian influence. All Russian participants were removed from the Register of Enterprises – the board and council. However, Latvia also wants to get rid of the Russian partner legally.

At the end of his diplomatic career, Larson founded LS2 Group in the US. This company is engaged in public relations and lobbying various interests. According to Nekā personīga, publicly accessible data indicates that only of this firm’s biggest clients is Saudi Arabia.

There is no information to suggest Larson was previously engaged in transit or port business. Nevertheless, he wants to become an investor for Riga Fertilizer Terminal.

As Larson told the programme, his planned investments would take the shape of capital investments that would reduce Mazepin’s shares to below 51%. This will ensure the terminal is in the hands of Latvians and Americans. Larson also said he has yet to speak with Mazepin about his plans.

Larson also claims Mazepin would not receive a single euro from the deal. Investments would go directly to the company. He money itself, according to Larson, would come from his wallet and borrowed funds.

In December 2023, Larson submitted an application to receive permission from the Latvian Cabinet of Ministers for investments. He has yet to receive a response. This week, however, Larson’s representatives PricewaterhouseCoopers will meet with Financial Intelligence Unit of Latvia, Nekā personīga reports.

Riga Fertilizer Terminal’s operations were frozen on the 9th of March 2022. The Cabinet of Ministers decided on the 6th of December 2022 to donate all the fertilizer stored at the terminal to the United Nations World Food Programme.

According to information from Firmas.lv, the turnover of Riga Fertilizer Terminal was EUR 1.098 million in 2023, which is 4.3 times less when compared to 2022. Last year, the company’s losses grew by 12% – to EUR 4.371 million.

Riga Fertilizer Terminal was registered in 2009. Its base capital is EUR 13.66 million. In 2021, the company operated with turnover of EUR 22.208 million and profits of EUR 5.899 million.

51% is owned by “Tammulogis Limited”, controlled by the sanctioned Russian oligarch Dmitry Mazepin, and 49% – by “Riga Port”. After being subjected to sanctions in 2022, the State Environmental Service (VVD) suspended the pollution activity permit of “Riga Fertilizer Terminal”, which was previously issued for temporary storage and transhipment of mineral fertilizers within the territory of the Freeport of Riga.

Riga Port was registered in 2012 with base capital of EUR 53.703 million. Its biggest owners are the families of Saeima deputy Ainārs Šlesers and ex-politician Andris Šķēle.

Riga Port owns several companies, including Riga Port Terminal LLC, Rīgas beramkravu termināls LLC, Juta termināls LLC, Riga Port Agency LLC, Riga Port Electric LLC, Rīgas Centrālais termināls LLC, Rīgas Ogļu Termināls LLC, Riga Port Management LLC, and Eksportostas īpašumi LLC. The company also owns 80% in Kravu ekspedīcija LLC.