The Latvian Stevedoring Companies Association (LSA) has sharply criticised the National Alliance’s (NA) proposed ban on the transit of Russian grain, arguing that behind the loud political slogans there are still no calculations demonstrating that such a move would actually weaken Russia rather than Latvia’s economy. A political slogan alone is not enough to justify a decision whose consequences could affect Latvia’s ports, railway sector, businesses and the state budget.
The consequences of such a rushed decision could cost Latvia hundreds of millions of euros. International food traders have already signed contracts for cargo transportation through Latvia, meaning that a sudden ban could create risks of legal action and compensation claims. A decline in cargo volumes could also lead to job losses and require additional state funding to maintain the railway network.
Ports and railways must continue to be maintained even if cargo volumes decline – the costs do not disappear. As a result, an increasing share of those costs would have to be borne by the remaining cargo flows, making exports more expensive for Latvian producers as well.
The United Nations has also repeatedly emphasised the importance of Russian and Ukrainian food exports to global food security, meaning that the consequences of restricting such flows would extend beyond Latvia.
LSA rejects the National Alliance’s claim that transit cargo leaves insufficient capacity at ports for Latvian grain.
According to the Association, capacity for domestic grain is available at all three major ports, with locally produced grain given priority during the harvest season.
The Prime Minister has also confirmed that there are no concerns about port capacity. LSA therefore argues that claims suggesting transit cargo is taking space away from Latvian grain are misleading the public.
If Latvia unilaterally bans this transit, the cargo will not disappear – it will simply move to other ports and transport corridors. According to LSA, such a decision should be coordinated at least at the Baltic or EU level. A unilateral Latvian ban would not stop Russian exports but would weaken Latvia’s competitive position.
Russian grain would continue reaching buyers, while Latvia would lose cargo, jobs and revenue. Therefore, before such a decision is taken, LSA says the National Alliance should answer one simple question: how many millions would this ban actually take away from Russia, and how many hundreds of millions could it cost Latvia?
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