To Evika Siliņa, Prime Minister of the Republic of Latvia

To Viktors Valainis, Minister for Economics of the Republic of Latvia

To Armands Krauze, Minister for Agriculture of the Republic of Latvia

Will resources be redistributed away from Latvia's existing producers by administrative decision, without any tender, in order to meet the needs of a potential investor?

We fully support the need to create a favourable investment environment for producers in Latvia and, through new investment, to encourage the processing of the logs we have so far exported unprocessed. At the same time, we cannot support the approach that “All Latvian producers are equal, but some potential investors are more equal than others”.

We were therefore taken aback by information — quite possibly distorted and incorrect — that a decision is being prepared with the government's backing which would, in essence, use administrative means to redistribute a/s “Latvijas valsts meži” roundwood supplies away from existing producers and towards a potential investor

Such a decision risks Latvia adopting the very practice for which the Estonian National Audit Office, in its report of 2 July 2024, criticised Estonia's state forest manager: “...in selling timber under long-term contracts, it has without justification granted advantages to certain contractual partners by setting special conditions for them and selling timber at a more favourable price”.

Local producers are worth no less than potential foreign investors. Over the past five years, Latvia's wood industry companies have invested more than 1 billion euros in development in total and continue to do so today, providing stable, well-paid jobs in Latvia's regions. We are also open to new investors who put money into high value-added manufacturing processes in Latvia. We would remind everyone that high added value goes hand in hand with competitiveness, and it is therefore hard to understand why exclusive exemptions should be created and fair competition with other Latvian producers in the purchase of roundwood from a/s “Latvijas valsts meži” avoided.

The Latvijas Kokrūpniecības federācija therefore insists that exclusive rights for investors at the expense of other producers are not acceptable in Latvia, and it declares its readiness to contribute its expertise to improving the existing sales procedures and to developing new ones that foster the growth of Latvia's economy while respecting important public interests and fair competition. This is no time for quarrels — let us work together for the good of Latvia!

Further information: Artūrs Bukonts, Executive Director of the Latvijas Kokrūpniecības federācija,
mob. tel.: +371 22 015 715, arturs.bukonts@latvianwood.lv

The Latvijas Kokrūpniecības federācija represents the leading non-governmental organisations of the forest sector in Latvia: Latvijas Mežizstrādātāju savienība, Latvijas Neatkarīgo Mežizstrādātāju Asociācija, Latvijas Biomasas asociācija, Latvijas Kokapstrādes uzņēmēju un eksportētāju asociācija, the association “Latvijas Koks”, Latvijas Kokmateriālu ražotāju un tirgotāju asociācija, Mēbeļu ražotāju asociācija Latvijā and the Latvijas koka būvniecības klasteris.