This week the topic of rising prices was on most residents’ minds in Latvia. The price of electricity in May 2022 increased by 239% when compared to May 2021, for example. Latvijas Gāze, meanwhile, announced that the natural gas tariff will increase by up to 89.9% for some households.
This week the Central Statistical Bureau of Latvia announced inflation in the country was 16.9% in May. There are no indications of inflation slowing down. Being able to afford winter bills is what occupies most residents’ minds in Latvia.
Estonia is slowly moving towards reducing excise tax for fuel, which would mean up to 25% cheaper fuel for buyers.
In Ukraine, which was once one of the biggest grain exporters, more than 23 million tonnes of grain and oil seeds are stuck in sea ports.
BNN gives you a summery of the most relevant events of the past week in the following topics: Gas prices; Audit of waste; Adamovičs’ sentence; Media; Fuel in Estonia; Inflation in Lithuania and Ukrainian grain.
GAS PRICES
Latvijas Gāze to increase gas tariffs for households up to 89.9%
Photo: UnsplashOn 1 July 2022 onward JSC Latvijas Gāze plans to increase natural gas tariffs for households between 65.6% and 89.9% depending on consumption, according to the entry in the Latvian Herald.
For households that consume up to 250 m3 a year, the differentiated end tariff with VAT and excise tax will increase by 65.7% – from 1.10209 EUR/m3 to 1.8252 EUR/m3. For households that consume 250 to 500 m3 of gas a year, the end tariff will increase by 74.7% – from 0.96649 EUR/m3 to 1.6896 EUR/m3.
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AUDIT OF WASTE
State Audit: Latvia’s biological waste management sector is in chaos
Photo: UnsplashIs Latvia working on an effective and economically justified biological waste management system and will it be adopted in time? Unfortunately, results of a recent audit clearly indicate – no, as reported by Latvian State Audit.
The institution explains that the current system no longer meets the country’s situation when it comes to population numbers and population density, for example. Adoption of the system is significantly delayed. The reason is because it is being adopted chaotically, without coordinated management or cooperation with all involved sides. If he system is adopted formally, it is likely residents will not be motivated and will not sort biological waste in a volume necessary to meet infrastructure output. Secondly, residents will likely overpay for management of biological waste. Finally, there is a possibility of sanctions – losses for Latvia if required EU environmental goals are not met in time.
This is why State Audit invites reviewing the chosen approach for the system’s adoption and development and find the best possible solutions.
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ADAMOVIČS’ SENTENCE
Saeima member loses mandate due to guilty verdict
Photo: Edijs Pālens/LETADeputy of the Latvian parliament Aldis Adamovičs has lost his mandate due to a guilty verdict, as reported by LTV.
The Saeima deputy was punished for fraud with compensation paid for rented apartment and forgery of documents. In August 2021 Riga City Vidzeme Suburb Court sentenced Adamovičs to a fine of EUR 6 000 for transport and residential space rent compensation fraud.
The court also issued a prohibition for him to serve as a member of the Saeima for one year and one month.
Adamovičs appealed the verdict but the court left the original verdict unchanged.
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GDP OUTLOOK
Bank of Latvia upgrades country’s GDP growth to 2.9% for 2022
Photo: UnsplashThe Bank of Latvia has upgraded the country’s GDP growth outlook for 2022 from the previous 1.8% to 2.9%, according to the bank’s representatives.
The central bank explains that the lasting war in Ukraine has a negative impact on the growth of Latvia’s national economy. However, in Q1 2022 Latvia’s GDP growth was more rapid than expected. This has allowed the bank to upgrade the growth outlook.
At the same time the Bank of Latvia has downgraded the country’s economic outlook for 2023 from 3.2% to 2.4%.
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MEDIA
Russian independent channel TV Rain permitted to continue operating from Riga
Photo: AFP/SCANPIXOn Monday, 6 June, Latvian National Electronic Mass Media Council (NEPLP) decided to issue a broadcasting permit for so-called Russian independent television Дождь (TV Rain). This means this television channel will broadcast its content from Riga, as reported by NEPLP chairman Ivars Āboliņš.
Following the closure of this channel in Russia, its editor in chief Tihon Dzyadko and multiple other editors left the country.
Дождь/TV Rain will be included on the list of TV channels registered in Latvia from 9 June onward.
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FUEL IN ESTONIA
Estonia discussing fuel tax cuts
Photo: PixabayIn Estonia, the proposal to cut petrol excise tax rate to EU’s lowest level has reached second reading as it could result in lower prices by 25%, ERR reports.
In the northernmost Baltic country, the current excise duty rate for unleaded gasoline is EUR 563 per 1,000 litres. The proposal would reduce it to the minimum permitted level in EU at EUR 359. The proposal initially came from the opposition, national-conservative Isamaa party, which is involved in the talks of potentially becoming a part of the next ruling coalition.
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INFLATION IN LITHUANIA
BNN ANALYSES | Lithuania’s inflation spirals out, but IMF placates – it should recede by the end of 2022
Photo: REUTERS/SCANPIXThe International Monetary Fund’s (IMF) latest mission has praised the Lithuanian government’s efforts to curb record-high EU-wide inflation and, thence, staggering prices. The Fund says inflation should recede by the end of the year, however, many Lithuanian decision-makers and analysts alike take the prognosis with a grain of salt.
«That Lithuania is the runner-up after Estonia on the inflation ranking in the European Union the Lithuanian government is responsible. Simply speaking, the Cabinet is evading the acute issue, chalking it up to the war. The reason why Lithuania has such insane prices is that our Energy pricing commission and the Competition Council do not work properly. Abroad, respective institutions are very actively engaged in the price control mechanism – not in Lithuania. In France, the parliamentarians voted for legislation aiming to regulate fuel prices. Similar initiatives have taken place elsewhere, not here,» Naglis Puteikis, a former member of the Lithuanian parliament, the Seimas, and now advisor to MP Petras Gražulis, told BNN.
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UKRAINIAN GRAIN
23 million tonnes of grain and oil seeds stuck at Ukrainian sea ports
Photo: PexelsMore than 23 million tonnes of grain and oil seeds are stuck at Ukrainian sea ports because ships cannot leave due to the Russian blockade, wrote Ukrainian Prime Minister Denys Shmyhal on this Telegram channel.
In spite of the war, however, farmers have successfully sown 75% of last year’s areas, he said.
The Ministry of Agrarian Policy considers creating mobile warehouses, considering international experience. This would help Ukraine increase its storage volumes by ten to 15 million tonnes, the minister explained.
More here
BNN summary of the week: Big price rise. TV Rain in Riga. Ukrainian grain export
