The "Riga Fertilizer Terminal" company is once again requesting a special permit — that is, an exemption from the sanctions regime — to resume operations.
The terminal promises to implement a so-called "firewall," meaning to completely separate the sanctioned Russian oligarch Dmitry Mazepin from the management of the company and from receiving profits, LTV reports.
However, the State Security Service pointed out that even with such a "barrier," the actual influence of the sanctioned individual may still persist informally — for example, through trusted persons or affiliated companies.
The final decision is to be made by the Latvian government. The issue is planned to be discussed at a closed meeting immediately after the holidays.
The "Riga Fertilizer Terminal" for handling mineral fertilizers in the Port of Riga was opened in 2013 as one of the largest joint projects of the port business of Latvia and Russia. More than 60 million euros were invested in it, and fertilizers from "Uralchem" were supposed to be supplied to global markets through Riga.
After Russia's invasion of Ukraine, the mineral fertilizer magnate Dmitry Mazepin was placed under European Union sanctions — as a close associate of Putin. On the first day of the war, he participated in a meeting of entrepreneurs convened by Putin in the Kremlin. Meanwhile, the operation of the Riga terminal came to a halt.
After the sanctions were imposed, attempts were made to change the ownership chain in Latvian companies linked to Mazepin, raising suspicions of risks of circumventing sanctions. In the fall of 2022, Mazepin informed Putin that he wanted to sell the Riga terminal of "Uralchem" to a Swiss trader for 42 million euros, but the deal was blocked by Latvian authorities.
Two years ago, former U.S. Ambassador to Latvia Charles Larson proposed investing in the Riga mineral fertilizer terminal to reduce Mazepin's stake. Minister of Economics Viktor Valainis ("Union of Greens and Farmers") explained to LTV that this plan could not be advanced further as it did not comply with European Union sanctions regulations. Larson disagrees and has appealed to the court. In the first instance, the court ruled in favor of the state.
"We informed Mr. Larson himself that his plan is simply impossible in the form in which he intended to enter this company and take over management," Valainis said.
Minister of Transport Aitis Shvinkas ("Progressives") told LTV that he has no information about a clear business plan.
"I would be very happy to hear from industry representatives, to see them come and explain what these flows are. The mentioned entrepreneurs are unable to present a clear business plan that would exclude all types of risks. Therefore, specifically regarding 'Riga Fertilizer,' I have no such information," Shvinkas said.
In a written comment, the company outlines its plans in general terms. More specifically, it only indicates possible benefits — the restoration of 150 jobs, payments to the Riga Free Port and "Latvian Railways," as well as a contribution to the economy of more than 5 million euros per year.
