On Friday, 28 November, the Minister for Agriculture, Armands Krauze, met with the Chair of the Competition Council, Ieva Šmite, to discuss the situation regarding possible competition concerns in the sale of timber resources by AS “Latvijas valsts meži” (LVM).

The Competition Council points out that LVM's approach to market participants differs, whereas all must be treated equally. A situation has arisen in which contracts concluded in the 1990s do not comply with the regulatory framework currently in force. The Competition Council calls on LVM to take action to remedy the possible competition concerns. The Ministry of Agriculture does not plan to continue or extend the contracts converting LVM's long-term logging agreements once their term expires. Proposals for changes to the regulatory framework will be drawn up to address the possible competition concerns.

Minister for Agriculture Armands Krauze: “In order to ensure fair competition for all businesses and to remedy competition concerns, I am proposing changes to the regulatory framework covering all types of natural resources, such as timber, peat, dolomite, carbon dioxide storage and others. Such changes must be drawn up in cooperation between the responsible ministries and with the involvement of the Competition Council, which, in accordance with the law and within its remit, is required to draft legislative proposals and submit them to the Ministry of Economics in the prescribed manner. Timber must not be an exception among the country's other natural resources.”

During the meeting, the parties agreed that LVM, with the participation of the Ministry of Agriculture, will work on solutions to remedy the possible competition concerns as soon as possible.