Latvia seeks to develop relations with the Russian Federation in accordance with the principles of international law and in line with one of its key foreign policy priorities - the maintenance of good relations with neighbouring countries. Latvia sees its relations with the Russian Federation as taking the form of a constructive dialogue in the context of both bilateral and multilateral co-operation.

Bilaterally, co-operation with the Russian Federation is being pursued through:

• political dialogue - promoting meetings of state officials;
• direct contacts between ministries and other state institutions;
• regional and cross-border co-operation.

The legal framework of relations between the two countries is based on about twenty inter-governmental agreements. A number of new agreements have been drafted. Signing of these agreements would boost the current bilateral co-operation and elevate it to a new qualitative level. Among the current priorities in the bilateral relations are the improvement of agreement basis and implementation of decisions of the inter-governmental committee.

Latvia also promotes its interests with regard to Russia within the framework of the EU-Russia relations, by participating actively in the work of the relevant EU institutions, dealing with specific issues and developing a joint strategy of relations.

History of diplomatic relations

On 11 August 1920, the Republic of Latvia and the Russian Soviet Federal Socialist Republic signed a peace treaty. Article 14 of the Treaty provided for the establishment of diplomatic and consular contacts between the parties upon ratification of the peace treaty.

The Latvian Embassy in Russia

Latvia's first diplomatic representative in Soviet Russia was Ambassador Janis Vesmanis. Mr Vesmanis presented his letter of accreditation on 2 November 1920. The Latvian Embassy was located in Moscow until 1940.  

Latvian consular representations in Russia

Latvian consular representations were established in Russia during the Civil War period (1919-1920) in Blagoveshchensk and Murmansk. Consular functions were also performed by representatives of the Latvian Interim Government: in Northern Russia by Alfreds Ikners (Archangelsk), in Southern Russia by Kristaps Bahmanis (Kiev) and Rudolfs Liepins (Don and Kuban). From June 1919 to October 1920, Latvia was also represented in Siberia and in the Urals by Janis Mazpolis (Vladivostok).  

Following the signing of the peace treaty, the following Latvian consular representations operated in Soviet Russia (as of December 1922 - the USSR):

• Moscow: Consulate-General (1920-1923)
• Petrograd (as of 1924 - Leningrad):
• Consulate-General (1924-1932, 1937-1938)
• Consulate (1920-1924, 1932-1937)
• Nizhny Novgorod: Consulate (1920-1921)
• Omsk: Consulate (1921-1923)
• Vitebsk: Consulate (1925-1932)
• Vladivostok: consular agency (1920-1923)

Russian diplomatic and consular representations in Latvia

The first official representative of Soviet Russia in Latvia, Jakov Ganecki, was accredited on 1 October 1920.

The USSR had the following consular representations in Latvia:

• Riga: Consulate-General (1925-1934)
• Consulate (1938)
• Daugavpils: Consulate (1923-1932)
• Liepaja: Consulate (1923-1932)

On 24 August 1991, the Russian Federation recognised the restored independence of Latvia, and diplomatic relations were renewed on October 4 of the same year.

Diplomatic and consular representations of the Russian Federation in Latvia

• Riga: Embassy
• Daugavpils: Consulate-General
• Liepaja: Consulate-General

The current Ambassador Extraordinary and Plenipotentiary of the Russian Federation to the Republic of Latvia, Viktor Kalyuzhny, presented his credentials to the President of Latvia, Vaira Vike-Freiberga, on 16 November 2004. On 20 April 2005, the Ambassador of Latvia, Andris Teikmanis, presented his credentials to the President of the Russian Federation, Vladimir Putin.

Diplomatic relations today

Diplomatic and consular representations of the Republic of Latvia in Russia

• Moscow: Embassy
• St Petersburg: Consulate-General
• Pskov: Consulate
• Kaliningrad - Office of the Consular Department of the Latvian Embassy in Russia. It was officially opened on 15 February 2007, although commenced issue visas as of 15 December 2006. 

Latvia's economic relations with Russia

- STATISTICS -

Trade^[1]

First half of 2008

• Exports

1. Lithuania - USD 716,999,556 or 16.24 % of total Latvian exports

2. Estonia - USD 555,159,796 or 12.56 %

3. Russia - USD 480,358,860 or 10.84 %

4. Germany - USD 383,000,765 or 8.68 %

5. Sweden - USD 320,003,738 or 7.26 % 

• Imports

1. Lithuania USD 1,138,768,964 or 25.80 % of total Latvian imports

2. Germany - USD 974,034,969 or 22.03 %

3. Russia - USD 801,879,611 or 18.20 %

4. Estonia - USD 512,746,911 or 11.62 %

5. Poland - USD 477,554,305 or 10.82 %

In the second quarter of 2008, Latvia had a negative trade balance to the amount of USD 321,520,751 (in 2007 - to the amount of USD 521,184,999).

Main export goods to Russia by type of goods in the second quarter of 2008, in USD

Type of goods	USD	% of total exports
Total	480,358,860	100 %
Machinery and mechanical appliances; electrical equipment - stands, panels, brackets, desks, shelves and other bases equipped with two or more electric or electricity distribution devices - 8.67 % - electric motors and generators - 7.92 %	101,021,863	21.03%
Prepared food stuffs - spirits and liqueurs -28.94 % - wines - 28.33 %	94,670,871	19.71%
Products of chemical and allied industries - medicines - 69.02 %	67,855,888	14.13%
Metals and articles thereof - iron and unalloyed steel bars - 63.30 %	42,975,769	8.95%
Transport vehicles - trailers, semi-trailers, and other transport vehicles without engine - 43.70 %	32,679,396	6.80%
Textiles and textile articles	25,884,209	5.39%
Mineral products	23,893,999	4.97%
Plastic and plastic articles; Indian rubber and rubber articles	22,194,477	4.62%
Plant products	21,264,967	4.43%
Animal products	11,399,001	2.37%
Miscellaneous manufactured goods	8,406,990	1.75%
Articles of stone, gypsum, cement, glass, and ceramics	7,953,074	1.66%
Wood and articles thereof	7,736,603	1.61%
Wood pulp; paper and cardboard	6,628,475	1.38%
Optical appliances and instruments (including medical); watches and clocks; musical instruments	2,532,137	0.53%
Precious and semi-precious stones, precious metals and metals plated with precious metals and articles thereof	1,462,748	0.30%
Raw skins and skins, leather, furs, and articles thereof	1,167,202	0.24%
Shoes, hats, umbrellas, and other articles	428,397	0.09%
Fats and oil	112,642	0.02%
Weapons and ammunition	80,789	0.02%

Main import goods from Russia by type of goods in the second quarter of 2008, in USD

type of goods	USD	% of total imports
Total	801,879,611	100 %
Mineral products - oil gases and other gaseous hydrocarbons - 64.68 % - petroleum oils - 23.52 %	401,900,918	50.12%
Metals and articles thereof - flat iron or unalloyed rolled steel - 44.76 %	191,276,364	23.85%
Wood and articles of wood - timber cut lengthwise or trimmed - 46.58 %	52,061,050	6.49%
Products of chemical and allied industries - mineral or chemical fertilizers - 47.46 %	41,252,438	5.14%
Prepared foodstuffs - spirits and liqueurs -59.19 %	25,756,605	3.21%
Machinery and mechanical appliances; electrical equipment	20,700,978	2.58%
Wood pulp; paper and cardboard	13,942,743	1.74%
Transport vehicles	13,303,838	1.66%
Plastic and plastic articles; Indian rubber and rubber articles	11,626,397	1.45%
Plant products	7,814,016	0.97%
Precious and semi-precious stones, precious metals and metals plated with precious metals and articles thereof	7,431,239	0.93%
Articles of stone, gypsum, cement, glass, and ceramics	5,661,062	0.71%
Miscellaneous manufactured goods	4,039,325	0.50%
Textiles and textile articles	3,449,339	0.43%
Optical appliances and instruments (including medical); watches and clocks; musical instruments	1,129,624	0.14%
Shoes, hats, umbrellas, and other articles	215,902	0.03%
Weapons and ammunition	196,537	0.02%
Fats and oils	79,125	0.01%
Raw skins and skins, leather, furs, and articles thereof	25,641	0.00%
Art and antique articles	9,659	0.00%
Animal products	6,811	0.00%

Trade dynamics between Latvia and Russia between 1999 and second quarter of 2008, in USD

Over the last two years exports to Russia have tripled, whilst imports have doubled.

Investment

At the end of the first quarter of 2008 the direct accrued investment (positions) of the Russian Federation in Latvia comprised LVL 246.5 million^[2].

As of 21 August 2008, 2198 Latvia-Russia joint companies were listed with the Register of Enterprises of the Republic of Latvia. Russia has invested LVL 123 204 639 in the equity capital of Latvia-registered companies^[3].

Major Russian investors in Latvia^[4]

• AK Transnefteproduct - LVL 36.550 million (34 % of SIA LatRosTrans shares, operates in pipeline transport, steam and hot water supplies);
• GAZPROM - LVL 13.566 million (34% a/s Latvijas Gaze shares, engaged in areas of gas production, distribution of gaseous fuel by gas lines and retail trade);
• Bank of Moscow - LVL 10,816 million (99.87 % a/s Latvijas Biznesa Banka shares, engaged in financial mediation);
• MDM Bank - LVL 8.200 % million (100 % a/s Latvijas Tirdzniecibas banka shares)
• Seflers Jurijs - LVL 7.91 million (100% SIA Meierovica 35 shares, engaged in the hotel sector)

Key visits and meetings in 2008

12 February - New Russian Ambassador Alexander Veshniakov presents credentials to President Valdis Zatlers.

18-20 February - Working visit by the Latvian Minister for Culture, Helena Demakova, to Russia as part of the Latvian Culture Days in Russia.

27 February - Second session of the Latvia-Russia Intergovernmental Commission Work Group on Humanitarian Co-operation.

8 April - Second session of the Latvia-Russia Intergovernmental Commission Work Group on Economic Co-operation.

4 June - Meeting between Latvian Prime Minister Ivars Godmanis and First Deputy Prime Minister of Russia Igor Shuvalov as part of the CBSS summit. The sides discussed current events in bilateral relations.

7 July - Meeting between the Co-chairmen of the Latvia-Russia Intergovernmental Commission (IGC), Latvian Minister for Finance Atis Slakteris and the Russian Transport Minister, Igor Levitin. The sides agreed to hold the next IGC session in September 2008 in Russia.

Chronology of important visits and meetings in 2007

23 March	Meeting in Moscow between the Latvian Finance Minister Oskars Spurdzins, the Chairman of the Latvian - Russian Intergovernmental Commission, and Igor Levitin, the Minister for Transport of the Russian Federation. During the meeting the agreement on organizing the session of the Intergovernmental Commission in Riga and establishment of two working groups (on humanitarian co-operation and on economic co-operation) was reached.
26 - 28 March	Working visit to Russia by the Latvian Prime Minister Aigars Kalvitis. During the visit the Border Treaty between the Republic of Latvia and the Russian Federation on the State Border between Latvia and Russia was signed.
3 May	Consultations between the Ministries of Foreign Affairs of Latvia and Russia on security policy issues held in Moscow.
28 - 29 May	Regional session of the Ministers for Communications held in Riga. The event was attended by the Minister for Information Technologies and Communications of Russia Leonid Reiman.
12 June	Meeting in Malmo, Sweden, between the Latvian Foreign Minister Artis Pabriks and the Russian Foreign Minister Sergei Lavrov during the session in the framework of the Council of the Baltic Sea States (CBSS).
12-15 June	Visit to Latvia by co-operation group of deputies from the State Duma of the Russian Federation and delegation of the Latvian Saeima.
26 June	Session of Latvian-Russian permanent administrative working group on customs issues held in Terehovo, Russia.
5 July	Session of the working group on humanitarian co-operation of the Latvian - Russian Intergovernmental Commission held in Moscow.
6 July	Session of the working group on economic co-operation of the Latvian - Russian Intergovernmental Commission held in Moscow.
16 - 19 July	Meeting between the State Treasurer of the Republic of Latvia Inguna Sudraba and the representatives of the House of Audit of the Russian Federation held in Riga.
20 July	Meeting of the Latvia-Russia Intergovernmental Commission held in Riga. During the meeting many top-priority issues were discussed, and also a working group on co-operation in the sphere of transport was established.
11 - 15 September	Visit to the Krasnoyarsk Krai by the Latvian Minister for Justice Gaidis Berzins. During the visit the Minister met with the Latvians resident in the region and the representatives of the local administration.
20 - 23 September	Event Riga Days in St. Petersburg.
29 September - 3 October	Exposition in Riga of the remains of the Saint Grand Duke Alexander Nevskij. In the framework of the event Metropolitan of Tashkent and Middle Asia Vladimir met with Latvian President Valdis Zatlers and Latvian Prime Minister Aigars Kalvitis. Kalvitis also met with Russian Culture Minister Aleksander Sokolov.
7 - 10 October	Visit to Latvia by the Head of the Federal Customs Service of the Russian Federation Andrei Belyaninov. During the visit the issues on plans regarding modernization and expansion of the border checkpoints infrastructure.
17 October	Latvian Culture Season commences in Russia.
27-29 November	Visit to Riga by Sergey Stepashin, Chairman of the Audit Chamber of the Russian Federation.
3 December	In Moscow, an Agreement between the Republic of Latvia and the Russian Federation on Co-operation for the Repatriation of Irradiated Nuclear Fuel from the Research Reactor to the Russian Federation was signed. On behalf of Latvia, the Agreement was signed by Raimonds Vejonis, Minister for the Environment, and on behalf of Russia, by Sergei Kiriyenko, Head of the Federal Atomic Energy Agency of Russia.
17-18 December	Working visit to Latvia by Sergey Lavrov, Minister for Foreign Affairs of the Russian Federation. During the meeting, the Foreign Minister of Latvia, Maris Riekstins, and the Foreign Minister of Russia exchanged the ratification documents for the State Border Treaty between the Republic of Latvia and the Russian Federation, and signed an Agreement between the Governments of Latvia and the Russian Federation on the Status of Latvia's Burial Sites in the Territory of Russia and Russia's Burial Sites in the Territory of Latvia, as well as an Agreement between Latvia and Russia on Co-operation on Social Security Issues. Foreign Minister Sergey Lavrov also met with the President of Latvia Valdis Zatlers and the Prime Minister, Aigars Kalvitis.
20 December	Meeting of the Russia-Latvia IGC On Transport Co-operation.

Important visits and meetings in 2004-2006
  

Latvia-Russia Border Treaty 

Agreement between the Republic of Latvia and the Russian Federation on the Latvia and Russia State Border (27.03.2007.)

Order on signing the draft agreement between the Republic of Latvia and the Russian Federation on the state border of Latvia and Russia

Peace Treaty between Latvia and Russia (11 August 1920) 

[1] Data of the Central Statistical Bureau of the Republic of Latvia

[2] Data of the Bank of Latvia

NB! (In the statistics of the Bank of Latvia Latvia's direct investments in other countries are shown as positions which  amount to more than LVL 0.1 million at the end of at least one period, but foreign direct investments in Latvia are those amounting to at least LVL 1 million)

[3] Lursoft data

[4] Lursoft statistics as of 22 May 2008 according to the data of the Register of Enterprises of the Republic of Latvia