Legal framework expansion and co-operation on environmental, energy and financial issues discussed between Latvia and Russia

On 8 April 2008, the Working Group on Economic Issues of the Latvia-Russia Intergovernmental Commission convened for their second session in Riga. At the session boths sides discussed matters related to economic co-operation, including the further expansion of the legal framework for co-operation, for example the draft agreements on avoidance of double taxation and tax evasion, on the promotion and protection of investments, and on co-operation in the tourism sector. The experts exchanged opinions on the current situation in sectors such as the environment, regional co-operation, energy, tourism, finance, and information technology. The Latvian officials also encouraged Russia to work more actively on the resolution of the issues which hinder the business of Latvian entrepreneurs.

The session began with the exchange of latest information concerning bilateral economic co-operation, emphasizing the notable increase in trade turnover and investment volumes.

As noted by Latvian representatives, Russia needs to resolve issues such as its export duty on round timber and its discriminating railway tariffs during its WTO accession process. A request was expressed for inspections to be sooner carried out by Russian authorities of Latvian businesses planning to export products of animal origin to Russia. The Working Group also recommended completing the work related to the maximum allowable content of benzopyrene in fish products by the end of the year.

Upon discussing the widening of the legal framework for co-operation, the Working Group agreed to hold expert discussions in the third quarter of this year in Moscow so as to co-ordinate the draft agreements on the avoidance of double taxation and prevention of tax evasion, and on promotion and protection of investments. It also agreed to continue work on the elaboration of agreements on environmental issues. A commitment was made on both sides to facilitate the completion of internal procedures, so as to be able to sign the agreement on co-operation in the tourism sector. 

During the meeting there was also an exchange of information relating to co-operation on energy. The Russian officials voiced interest in participating in the development of new power stations in Latvia. The Latvian experts indicated there could be more efficient ways for Russia to use the existing transport infrastructure for power resource export through Latvian ports, as well as the possibility of expanding gas storage in the territory of Latvia.

The Working Group was briefed on the consultations of financial experts, held at the end of March in Moscow. The officials exchanged opinions and agreed to continue discussions through expert consultations until the next session of the Working Group, which is due to take place before the session of the Latvia-Russia Intergovernmental Commission.

The necessity of expanding regional co-operation, as well as co-operation in the IT and wood-processing sectors was also emphasized..

The Working Group is chaired by Under-Secretary of State of the Latvian Ministry of Foreign Affairs Maija Manika and Deputy Director of the Foreign Economic Relations Department at the Russian Ministry for Economic Development and Trade Alexey Slizkov.

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