Facts

Latvia's Saeima backs higher tariffs on grain transit from Russia

Latvia's Saeima on Thursday adopted amendments to the railway law that allow tariffs on the transit of grain from Russia to be revised on an expedited basis, the parliament's website has reported.

"The amendments will make it possible to more quickly review and, if necessary, increase the fee for the transit of grain via the country's public railway infrastructure, if the loading station is located in Russia. This procedure will also apply to cargo brought into Latvian ports for further export. Revenue, if generated from the increased infrastructure fee applied to Russian grain transit, will go toward Ukraine's defense needs," the statement said.

The special procedure will be in effect until December 31, 2026.

The railway law currently provides for a two-month period for publishing changes to infrastructure fees, but the amendments will shorten this to two weeks for Russian grain. The law will take effect the day after publication.

It was noted that in submitting the bill to the Saeima, the country's Cabinet of Ministers called on LatRailNet JSC, which decides on railway infrastructure usage fees, to assess the possibility of setting an increased fee of 300% of the current rate for the transit of grain cargo of Russian origin.

As reported, Latvian Prime Minister Andris Kulbergs said in early September that Latvia's government plans to introduce a 300% duty on Russian grain and its processed products. "Latvia is seeking to reach a common position among the Baltic states so that Russian grain does not use the region's infrastructure," Kulbergs said, adding that the restrictions would also apply to grain supplied from Belarus.

According to the Latvian prime minister, he has already held talks on this issue with the prime minister of Estonia and plans similar talks with the head of government of Lithuania.

It was also earlier reported that Lithuanian Agriculture Minister Kęstutis Mažeika had ordered a check into the origin of grain being transported through the country in transit from Russia and Belarus.

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