PM Kulbergs: "LatRailNet" hasn't done everything possible to curb Russian grain transit
Latvian Prime Minister Andris Kulbergs has criticized railway company "LatRailNet" for failing to triple infrastructure fees for Russian-origin grain transit as required by the government and parliament, raising rates by only 24% instead.
Prime Minister Andris Kulbergs (AS) on Tuesday, following a cabinet meeting, criticized "LatRailNet," a subsidiary of state railway company "Latvijas dzelzceļš," for failing to carry out either the government's or parliament's instruction to triple the railway infrastructure fee for transit of grain cargo originating in Russia. According to the prime minister, the company has only raised the fee by 24%, while the process of coordinating a 300% increase with European Union institutions only began on October 1.
Kulbergs said he could not understand why the company had failed to act sooner, given that the instruction dates back to September 15. At the cabinet meeting, he tasked Foreign Minister Baiba Braže, Justice Minister Edvards Smiltēns and Transport Minister Rihards Kozlovskis with preparing an economic impact assessment similar to the one produced last week by Estonia, which decided to fully ban Russian and Belarusian grain transit through its territory.
International risks and the Brussels visit
The prime minister noted that there are risks of international litigation that need to be assessed in financial terms, and he expects the government to receive answers on these questions next week. Kulbergs plans to raise the issue during a meeting with European Commission President Ursula von der Leyen in Brussels next week.
Meanwhile, a report submitted to the government by the Transport Ministry states that "LatRailNet's" board made a justified decision on the fee amount in accordance with regulations, and informed the Cabinet of Ministers in detail about it on September 30. The company has additionally asked the European Commission for guidance on practices for raising fees based on indirect costs, as well as consultations on fee ceilings and the possibility of segmentation by cargo origin country.
Legislative background
On September 17, parliament urgently passed amendments to the Railway Law that, until the end of this year, allow for an accelerated review of infrastructure fees for Russian grain transit shipments, shortening the publication period for fee changes from two months to two weeks. The bill's explanatory note cites risks including a potential drop in cargo flow, possible litigation, and complications with EU transport policy regulations. The government has decided that any additional revenue from the increased fee would be directed toward Ukraine's defense needs.
