The joint-stock company Latvijas valsts meži (LVM) must remain entirely state-owned, as state forests must not be privatized, emphasized Minister of Agriculture Armands Krauze (ZZS) in a statement to LETA.
According to the Ministry of Agriculture, Krauze believes that LVM should not be among the state-owned enterprises whose shares could be sold through a public offering by 2029. He argued that such a move would essentially amount to the privatization of a strategically important company that plays a crucial role in Latvia’s economy.
Krauze explained that LVM manages approximately 1.62 million hectares of Latvian land and is a nationally strategic company that belongs to the people of Latvia and contributes significant sums to the state budget annually.
“That is why I am categorically against the privatization of this company. Privatizing state forests is simply not an option,” the minister stated, expressing confidence that the Saeima will also oppose selling any LVM shares via public offering.
“I cannot imagine any circumstances under which MPs would want to sell such a strategically important and profitable company,”
Krauze added. He also stressed that other strategic enterprises, including Latvenergo, should not be sold either.
He further noted that if the Ministry of Finance or others wish to list state companies on the stock exchange, it could potentially apply to some telecommunications, utility, or similar companies—but not to LVM.
As previously reported, Prime Minister Evika Siliņa (JV) recently told journalists that a public discussion is necessary about potentially listing state enterprises on the stock exchange.
“In a democratic country, it’s crucial that we openly and honestly debate difficult issues,”
said Siliņa. She is closely observing how major energy companies in Lithuania and Estonia have managed to attract additional financing and expand their export capacity through public listings.
Siliņa stressed the importance of discussing potential benefits for society—such as allowing citizens and businesses to purchase shares in large state enterprises. This would also increase transparency: “Our people would gain more insight into what these companies do,” she noted, adding that this practice is common in many Western countries.
She also pointed out that no decisions have been made yet, although politicians advocating for such a discussion are already being targeted with what she called a paid “smear campaign.” The Prime Minister urged both politicians and the public to “step out of their preconceptions,” emphasizing the need to consider how the state and its companies can generate more income.
The Ministry of Finance has submitted a draft informational report for inter-ministerial review titled “On Proposals for Capital Market Development and State and Municipal Capital Companies for Initial Public Offering.”
The report provides an overview of progress made so far in developing the capital market,
analyzes trends and movement toward previously set goals, and outlines future steps.
It also argues that allowing private investors to purchase shares in publicly owned capital companies could balance public and private sector interests. While 100% state ownership may hinder market development, reducing the state’s stake could gradually involve the private sector, enhance competition, and return public investments into the state budget.
Furthermore, the Ministry notes that, according to a Cabinet decision on May 13, 2025, one of the planned measures to reduce national debt is to divest minority stakes (no less than 10%) in state-owned companies through public offerings by 2029. This includes commercial state-owned enterprises that currently are legally protected from privatization.
Krauze has previously stated that the Union of Greens and Farmers (ZZS) is strongly opposed to the privatization of state-owned enterprises—including Latvijas valsts meži, Latvenergo, Sadales tīkls, and Augstsprieguma tīkls—and will block any such proposals submitted to the government. The Ministry of Agriculture also refuses to approve the draft report prepared by the Ministry of Finance. The Latvian Forest Industry Federation has likewise declined to endorse the document.
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