BNN summary of the week: Latvijas gāze. Visas. Price rise

Latvian public trader Latvijas gāze JSC has failed to complete the requirement listed in the Energy Law regarding emergency reserves of natural gas, which should have reached 1.15 TWh by the end of August. According to the company’s board chairman Aigars Kalvītis, the volume of gas owned by LG in Inčukalns underground gas storage facility is only 0.3 TWh, which indicates there isn’t enough to supply households.
Latvia’s Prime Minister Krišjānis Kariņš calmed residents by assuring them the country has enough gas.
Commenting on LG’s claims that there may not be enough gas to last the winter, the PM stressed that this company’s name is misleading, calling it Russian Gas instead.
European member states’ foreign affairs ministers, meanwhile, failed to reach an agreement on a general ban on the issue of visas for Russian citizens. The reason is because member states have different opinions on this issue. However, it was decided to abolish the practice of quick visa issue to Russian citizens. In reality all this means is that visa applications will take longer to review and the price will be higher.
September brought about not only the start of a new school year, but also changes within state administration in Latvia. From 1 September onward the Ministry of Economics and all of its subordinated institutions will communicate with clients and the media only Latvian language.
BNN gives you a summery of the most relevant events of the past week in the following topics: Opinion; Visas for Russians; Only in Latvian language; Object on Natural Interests; Aid for Ukraine; Prices are up; Income.
OPINIONS
PM: Latvijas gāze is not interested in peace in Latvia and peace of mind in people’s heads
Latvia’s Prime Minister Krišjānis Kariņš. Photo: Paula Čurkste/LETALatvijas gāze JSC (LG) management and owners are not interested in peace in Latvia and peace of mind in people’s heads, said Latvia’s Prime Minister Krišjānis Kariņš in an interview to LTV programme Rīta panorāma.
Commenting on the recent statement from LG that there may not be enough gas in Latvia to last the upcoming heating season, the politician said Latvijas gāze’s name is misleading – if it were called properly, by its owner’s structure, it would be called Russian Gas.
«The management of the company and their owners are not interested in peace in Latvia and peace of mind in people’s heads.»
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VISAS FOR RUSSIANS
EU ministers agree to terminate quick visa issue procedure for Russian citizens
Photo: PexelsForeign affairs ministers of European Union member states have agreed to terminate the procedure under which Russian citizens are issued with visas quickly. This was the response to Russia’s aggression in Ukraine, as announced by the head of the EU Foreign Service Josep Borrel.
According to Borrel, ministers agreed relations with Moscow cannot go back to how they were before, adding that the agreement is to be completely terminated.
Termination of this agreement means now visa requests from Russian citizens will take longer to review and will cost more, added the head of the EU service.
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ONLY IN LATVIAN LANGUAGE
Latvian Ministry of Economics to communicate with clients in Latvian language only
Photo: Paula Čurkste/LETAFrom 1 September onward Latvian Ministry of Economics and institutions under its direct subordination will start providing information and communicating with clients only in Latvian language.
The order issued by minister Ilze Indriksone, based on Section 10 of the Official Language Law, provides for Investment and Development Agency of Latvia, Consumer Rights Protection Centre, Latvian National Accreditation Bureau, State Construction Control Bureau of Latvia, and the Central Statistical Bureau of Latvia to start providing information and communicate with clients only in Latvia’s state language – Latvian – starting from 1 September 2022.
With that neither the ministry nor any of its institutions will no longer require Russian language skills in job offers or allow employees to use Russian language in day-to-day work.
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OBJECT OF NATIONAL INTEREST
Latvian government agrees to provide object of national interest status to Skulte LNG terminal
Latvian Prime Minister Krišjānis Kariņš. Photo: Latvia’s State ChancelleryOn Tuesday, 30 August, Latvia’s government agreed to provide object of national interest status to Skulte liquefied natural gas terminal (LNG), as journalists were told by Prime Minister Krišjānis Kariņš after the meeting.
At the beginning of June the government ordered the Ministry of Economy to perform an in-depth evaluation of LNG terminal projects: the Skulte LNG Terminal JSC in Saulkrasti and Kundziņsalas dienvidu projekts LLC in Riga. The ministry had until 31 August to submit to the Cabinet of Ministers reports with independent consultants’ conclusions regarding the two projects’ compliance with Latvia’s national and economic interests.
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AID FOR UKRAINE
Latvia provides approximately 300 million euros worth of military aid to Ukraine
Photo: UnsplashSince 24 February the total military support Latvia’s government has provided Ukraine in its fight against Russia has reached almost EUR 300 million. Latvian residents, companies and NGOs have collected donations worth more than EUR 15.7 million, as reported by Ministry of Defence.
«This war will be long. Our and other countries’ provided aid is one of the conditions for Ukraine’s survival and independence. Latvia is a leader when it comes to providing support and an example for other countries in Europe and the rest of the world,» stressed the Minister of Defence Artis Pabriks.
Latvia’s military aid provided to Ukraine include arms, individual equipment, MREs, munitions, anti-tank weapons, Stinger anti-air missiles, UAVs, howitzers, helicopters, fuel and other goods.
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PRICES ON A RISE
Latvia increases tariffs of produced heating energy; prices in Riga to be strongly affected
Photo: UnsplashLatvian Public Utilities Commission (SPRK) has approved new heating energy tariffs for Latvenergo JSC TEC-1 and TEC-2. Tariffs will be significantly above existing ones and will affect tariffs in use by Rīgas siltums JSC.
As reported by SPRK, 88% of heating energy’s tariff costs come from natural gas and because natural gas costs are variable, Latvenergo was asked to set TEC-1 and TEC-2 tariff use order under which tariffs are set in accordance with different natural gas prices.
In the decision approved by SPRK natural gas tariffs are set at an interval between 10 to 225 EUR/MWh without VAT.
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INCOME
Average wage after taxes in Latvia – EUR 997
Photo: UnsplashIn Q2 2022 the average gross wages and salaries for full-time work in the country amounted to EUR 1 362.
Compared to Q2 2021, the average monthly earnings grew by EUR 105 or 8.3 %. Hourly earnings before taxes increased to EUR 9.20 or by 5.6 %.
Compared to Q1, in Q2 2022 the average monthly gross wages and salaries grew by 5.0% and hourly earnings by 5.5 %, according to data from the Central Statistical Bureau of Latvia.
Average net wages and salaries, which was calculated based on labour taxes applicable on workplace, comprised EUR 997 or 73.2% of gross earnings.
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