The Ministry of Economics (EM) has become involved in resolving the Ventspils Freeport Authority’s debt to the State Treasury and has prepared a project proposing to write off approximately €3 million, according to information obtained by Latvian Television (LTV).
As reported by LTV’s program Panorāma, the prepared project has been classified by the ministry.
Minister of Economics Viktors Valainis, who represents the Union of Greens and Farmers (ZZS), is a political ally of the For Latvia and Ventspils party.
To write off the port’s debt, the Economics Ministry will have to find a funding source in the next year’s state budget. The final decision will rest with the Ministry of Finance (FM) and the government, although it is already known that the Ministry of Transport (SM) may raise objections.
As previously reported, Minister of Transport Atis Švinka has emphasized that the degraded infrastructure at the Port of Ventspils, which requires investments of up to €100 million, cannot be blamed solely on Russia’s aggression and sanctions.
“For more than 35 years, the way of ‘management’ practiced there — during which the city of Ventspils was maintained using port funds, EU financing, and state support — has contributed to the port’s stagnation and loss of competitiveness among Baltic ports,” the minister stated earlier.
The Ministry of Transport told the LETA news agency that
more detailed information about possible solutions will follow in due course.
The TV3 program Nekā personīga previously reported that the Union of Greens and Farmers (ZZS) is advocating for the cancellation of debts owed by the Ventspils Freeport Authority, totaling more than €19.9 million, most of which are State Treasury loans.
According to ZZS, the debts were incurred during the period of full state control over the port, and they argue that the liabilities should be cleared before municipal representatives return to port governance.
However, Nekā personīga reported that both the Ministry of Finance and the State Treasury are cautious about this idea, pointing out the risk of illegal state aid and the possible need for a special law to authorize any partial debt write-off.
Amendments to the Ports Law, which would allow municipal representatives to return to port boards, have currently stalled in the Saeima committee. Kaspars Briškens (Progressives), Chair of the Parliamentary Committee on Economic, Agricultural, Environmental and Regional Policy, has criticized ZZS for applying political pressure and blackmail, while ZZS denies any political motives, insisting that their proposal is based on economic considerations.
In 2024, terminals at Ventspils Port handled a total of 8.234 million tons of cargo, which is 21% less than in 2023.
By cargo volume, Ventspils remains Latvia’s second-largest port.
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