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Relations Between Latvia and Austria [06 May 2008]
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Latvia and Austria have traditionally enjoyed good and many-sided co-operation, and political dialogue is based on mutual interest. Dynamic co-operation takes place with the federal states of Austria in the fields of economy, as well as culture, education and science.


History of diplomatic relations

Austria recognized the independence of Latvia de iure and established diplomatic relations on 17 February 1921. On 28 August 1991 Austria recognized the restoration of Latvia's independence, and diplomatic relations were renewed on 19 January 1992.

The Austrian Embassy was opened in Riga on 31 October 1997 by Dr. Wolfgang Schussel, the Austrian Minister of Foreign Affairs. Since 2 October 2007, the Austrian Ambassador Extraordinary and Plenipotentiary to Latvia is Mag. Hermine Poppeller, replacing Dr. Wernfried Koffler. Latvia's embassy in Austria was opened in autumn 1992. Since 25 October 2005, the Latvian Ambassador Extraordinary and Plenipotentiary to Austria is Aivars Groza.

Latvia has two Honorary Consuls in Austria: since 1997 - Dr. Karl Winding, residing in Salzburg, and since 2002 - Mag. Tino F. Polzer, residing in Graz.


Parliamentary co-operation

The group of deputies of the 9th Saeima of the Republic of Latvia for co-operation with the Austrian Parliament has 14 members. The group is chaired by Solvita Āboltiņa, and co-chaired by Stanislavs Skesters.

The Austrian – Baltic Friendship group in the Austrian Parliament consists of 12 deputies of the National Council and three representatives from the Federal Council (the representation of federal states). The chairperson of the group is Marianne Hagenhofe, among its members there is also a well known Austrian politician, head of the "Greens" (Die Grünen) party and its parliamentary faction, Dr. Alexander Van der Bellen.


Economy

Latvia's economic interests in Austria are represented by the Latvian Embassy in Vienna. Austrian economic interests in Latvia are represented by the Austrian Embassy in Riga, and the office of the Austrian Chamber of Commerce in Riga, which principally mediates the organising of promotion events of Latvian – Austrian economic co-operation.

A successful example of co-operation between both countries was the Latvia Business Day on 23 May 2007 at Linz, in Upper Austria, and the Austria Business Day on 23 October in Riga.


Trade

In 2007, Latvia's external trade turnover with Austria amounted to 180.4 million EUR. Latvia exported to Austria 30.7 million worth of goods (which exceeds the figures for 2006 by 66.1%), and from Austria imported goods for 149.7 million EUR (which exceeds the figures for 2006 by 27.3%).


Latvia's trade with Austria in  2006 and 2007 (million EUR) 


2006

2007

Change, %

Ranking

mln EUR

Share,%

mln EUR

Share,%

2007 vs 2006

2006

2007

Exports

18.5

0.4

30.7

0.6

66.1

28

24

Imports

117.6

1.4

149.7

1.8

27.3

18

17

Total turnover

136.1

1.1

180.4

1.4

32.6

21

21

 
 

Dynamics of trade in goods (million EUR)

Dynamics of trade in services (million EUR)

  

Principal export goods to Austria (thousand EUR)

Principal import goods from Austria (thousand EUR)

Iron and non-alloy steel in ingots – 11683.0

Furniture of wood – 2069.8

Flat-rolled products of  iron and non-alloy steel – 1811.2

Unwrought aluminium in ingots or liquid aluminuim – 1531.8

Timber of Norway spruce or European silver fir – 1360.1

Furniture of wood for dining rooms and living rooms – 702.0

Games with screen – 17146.2

Medical products – 7066.7

Articles for funfairs, table or parlour games – 2960.2

Wooden shutters for concrete construction work – 2183.5

Ginger, saffron, bay leaves, curry and other spices– 2086.3

Water, mineral water, carbonated water– 2086.3

data of CSB and LB

 

Investment

Austrian accumulated direct investment in Latvia (thousand LVL)

Source: The Bank of Latvia

 

As of the end of third quarter 2007, Austria ranked 13th among the largest investors in Latvia. Investment in Latvia has been accumulated in agriculture and forestry (7.1 million LVL, 6%), industry (2.6 million LVL; 2.2%), wholesale and retail sales (13.1 million LVL, 11%), financial mediation (53.3 million LVL, 44.9%), real estate (12.9 million LVL, 10.9%), public, social and individual services (29.4 million LVL, 24.8%). 

Source: The Bank of Latvia

 

Accumulative direct investment in equity of companies

Austria ranked 18th according to investment in basic capital of Latvian-registered companies.

 

 

Direct investment accrued by residents in the basic capital of Latvia's companies

Number of active companies


Source: Lursoft

Updated 2008-01-28


Latvian accrued investment in Austria (thousand LVL)

Investors from Latvia have made the largest investment in real estate (3.8 million LVL; 84%).

 

 

Largest companies with Austrian capital in Latvia

Investor

Latvian company

Volume of investment,

LVL

Investment volume (% of investment into company equity capital)

Field

Austrian Gaming Industries GmbH


3,900,000



SIA Alfor

1,800,000

60

Gambling and betting

SIA Barklajs spēles

2,100,000

60

Severstal Trade GmbH

AS Severstaļlat

2,020,000

50.50

Manufacturing of structural metal products and parts thereof, metal forging, pressing, stamping, roll forming and powder metallurgy services

Goldfeder GmbH

AS Rimako

1,194,223

53

Manufacturing of textile articles, except wearing apparel

Osterreichische Doka Schalungstechnik GmbH

SIA "Doka Latvia"

1,000,000

100

Manufacturing of structural metal products, rent of construction machinery

VAE GmbH

SIA VAE Rīga

954,912

100

Manufacturing of structural metal products

AGRA Gesellschaft fur landwirtsschafliche Entwicklung und Beteiligung GmbH

SIA "Dobele Agra S.I.A."

470,060

100

Manufacturing of fodstuffs, agricultural production

Siemens Industrial Services GmbH

SIA "Rigens"

322,000

100

Production of electrical energy and electricity distribution

AB MANAGEMENT CONSULTING GMbH

Maksātnespējīgā SIA "OBB"

266,469

10

Wholesale trade, real estate

Knoll Heinz

SIA  "Klintwood"

136,000

50

Production of mineral waters and non-alcoholic beverages, timber processing

ABC Conti Handels Gesellschaft m.b.H.

AS "ABC-CONTI"

129,734

76.34

Manufacturing of bread and fresh baker's wares

Wietersdorfer Baustoffe Beteiligungs GmbH

SIA "Baumit-Baltikum"

100,000

100

Manufacturing of articles of concrete, plaster and cement;

wholesale trade of timber, construction material and sanitary fixtures

Source: Lursoft


Defence

So far, co-operation has been mainly based on the political dialogue and reciprocal visits, and no bilateral co-operation agreements have been signed.

The Austrian Defence Attaché in Latvia is Colonel Michael Janisch (accredited in January 2007), resident in Stockholm. The Latvian Defence Attaché in Austria, Colonel Mintauts Buks, resident in Berlin, was accredited in November 2006.


Transport

Close co-operation, based on agreements, exists with Austria in the sector of international road transportation.

VAS ´Latvijas Valsts Ceļi" (LVC) has contacts with its Austrian counterpart  within the framework of the international organisation, the Conference of European Directors of Roads (CEDR), as LVC is a member of CEDR.

On the Riga-Vienna-Riga route, airBaltic airline operates flights 5 times a week, and Austrian Airlines - on a daily basis.

Over a longer period of time, VAS ´Latvijas Dzelzceļš" has been co-operating with an Austrian firm "Plasser & Theurer", purchasing modern equipment for road repair and maintenance from the company. This co-operation commenced in 1994, and until now 13 road repair and maintenance machines have been purchased.

 

Culture and education

No intergovernmental agreements exist regarding co-operation in the field of culture, as Austria does not practice the concluding of such agreements. Notwithstanding this, co-operation between Latvia and Austria takes place in almost all the key areas at the level of the respective organizations, by concluding agreements between partners. The Embassies of both countries are very active in the upkeep of co-operation in cultural matters.

Good co-operation has been established with KulturKontakt – an organisation for the promotion of partnership in culture and art between organisations. On competition basis, it offers scholarships for studies, professional development, master classes, etc.

Latvia's young opera singers regularly take part at the International Belvedere Competition, with great success. Due to this competition, soloists Egils Siliņs, Krisjanis Norvelis and Elina Garanca have enjoyed fame at the Vienna Staatsoper in their time.

Since 2004, the Austrian architect Volker Gienke has been working on the project of the Liepāja Concert Hall. The group of international consultants who in 2006-2007 developed the concept for the work of the Riga Concert Hall included also an Austrian expert Mathias Naske.

In 2006, an agreement was signed with the Austrian Film Centre on co-operation in the field of international joint productions. As the result of the agreement, a Latvia-Austria joint production, a film entitled Tumšie brieži (The Dark Deer) directed by Viesturs Kairišs, was issued in 2006, and an Austria-Latvia-U.K. joint production, a film entitled Janu nakts ( Midsummer Madness), directed by Alexander Hahn, was released in 2007.


Visits and meetings

Presidents

29-30 April 2008

Visit to Austria by President Valdis Zatlers of Latvia within the framework of the informal annual meeting of the Arraiolos Group debates. Bilateral meeting with the Federal President of Austria, Dr. Heinz Fischer.

10–11 April 2007

Visit to Latvia by President Heinz Fischer of Austria within the framework of the informal debates between the eight Presidents of the EU Member States

22-24 July 2006

Working visit to Austria by President Vaira Vike-Freiberga to receive the Small Countries Prize at the Herbert Baltiner European Institute in Salzburg

28 January 2006

Meeting between President Vaira Vike-Freiberga of Latvia with the Federal Chancellor of Austria, Dr. Wolfgang Schussel

10 July 2004

Visit to Austria by President Vaira Vike-Freiberga of Latvia to attend the state funeral of the former Austrian President Dr. Thomas Klestil

9-12 July 2003

Official visit by President Vaira Vike-Freiberga of Latvia and her husband Imants Freibergs

26-28 July 2002

Visit to Austria by President Vaira Vike-Freiberga of Latvia and participation at the Salzburger Festspiele 2002 and the Baltic Negotiations

23–24 April 2002

Working visit by the Federal President, Dr. Thomas Klestil of Austria

1–3 July 2001

Participation by President Vaira Vike-Freiberga of Latvia in the European Economic Summit in Salzburg

17–19 June 2001

Participation by President Vaira Vike-Freiberga of Latvia at the seminar Sustaining Democracy in the Modern World in Salzburg

 

Speakers of Parliaments

10-11 June 2002

Official visit to Austria by Chairman of the Saeima Janis Straume

29–30 October 2001

Official visit to Latvia by Dr. Heinz Fischer, the President of the Austrian National Council

 

Prime Minister

1 December 2003

Meeting in Vienna between the Prime Minister of Latvia Einars Repse and the Austrian Federal Chancellor Dr. Wolfgang Schussel

10 May 2001

Meeting in Vienna between the Prime Minister of Latvia, Andris Berzins and the Austrian Federal Chancellor, Dr. Wolfgang Schussel

28–30 June 2000

Participation by Prime Minister Andris Berzins in the Salzburg Economic Forum

30 June - 2 July 1999

Participation by Prime Minister Vilis Kristopans in the Salzburg Economic Forum

25–27 June 1992

Visit to Austria by Prime Minister Ivars Godmanis

 

Foreign Ministers

12 March 2007

Working visit to Austria by the Minister of Foreign Affairs, Artis Pabriks Bilateral meeting with the Austrian Foreign Minister, Dr. Ursula Plassnik

6 December 2005

Working visit to Austria by the Foreign Minister of Latvia, Dr. Artis Pabriks

19 January 2004

Official visit by the Minister of Foreign Affairs, Sandra Kalniete

16–17 September 2002

Participation by the Latvian Minister of Foreign Affairs, Indulis Berzins, in the European Economic Forum in Salzburg

25-27 November 2001

Participation by the Latvian Minister of Foreign Affairs Indulis Berzins in the conference on The Baltic States, Austria and EU Enlargement in Vienna

3–4 April 2001

Official visit by the Minister of Foreign Affairs, Dr. Benita Ferrero-Waldner

3–4 May 1999

Official visit by the Foreign Minister, Valdis Birkavs

31 October 1997

Official visit by the Vice-Chancellor and Foreign Minister, Dr. Wolfgang Schussel


Concluded agreements:

Database of bilateral agreements with Austria


Useful internet links

The Austrian Federal President: http://www.hofburg.at/

The Federal Chancellor of Austria: http://www.austria.gv.at/

The Parliament of Austria: http://www.parlament.gv.at/

The Federal Ministry for European  and International and Affairs of Austria: http://www.bmaa.gv.at/

The Federal Ministry of Defence of Austria: http://www.bmlv.gv.at/

 

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