Video from the youtube channel of AS Ventbunkers. Dr. Rudolf Meroni – chairman of the supervisory board of AS Ventbunkers is speaking.
Abstract:
Dr. Rudolf Meroni, the chairman of the supervisory board of AS Ventbunkers explains his opinion on he impact of the European Union on the Republic of Latvia during the last several years. For the oil transit business in Latvia Dr. Rudolf Meroni anticipates a promissing development in the future.
Here you find the full transscript of this Video.
Question:
Latvia in the European Union:
– transit business in Latvia
– the role of the pipeline
Answer:
I am from Switzerland and therefor I have a certain scepticism
vis-a-vis the European Union. We believe that such huge organisation
brings a lot of inefficiencies in the administration along the way.
So I cannot say that I am absolutely, with my full heart, a person
who promotes the European Union everywhere.
I considered the position for Latvia to be different. Latvia joined
the European Union in May 2004 and since then obviously had quite
a number of advantages: facilitated possibility for lending have
also created a real boom in the real estate market in 2006, 2007
and up to the year 2008.
But obviously then the fact that Latvia was one of the most prosperous
countries over a certain period of time, lead also then to a sharp decline,
when the difficulties came up in the western economies.
I think today Latvia still has a lot of advantages of being a member
state of the European Union, on the other hand I believe also, that
it is not unanimous, that everybody is totally satisfied with the
situation which came along.
The economic situation today of Latvia bound into being a member
state of the European Union has been quite severe. The negotiations
which Latvia had with the International Monetary Fund led to
certain restrections which actually bring Latvia partly
backward and there is a shrinking income – let’s say in the public
sector, salaries have not been increased – rather decreased.
All this leads obviously to a lot of problems. During all this
period of time there was always one business sector which was
quite prosperous: it is the transit business sector – and I have
a tendency to at this sector in particular because of my involvement
in this area.
The latvian transit business sector is today characterised by
different sectors which are handled by the ports of Latvia.
The oil transit business is still probably one of the most important
areas which has also a big influence on the latvian economy.
It is very sad, that since the year 2003 the pipeline which is in a
perfect technical condition and could bring crude oil from Russia
to the latvian ports, mostly the port of Ventspils, is not operating.
I had had in the past several negotiations with russian business
partners and it appeared, that there is a kind of a political problem
to reestablish the crude oil pipeline.
The crude oil pipeline is for the latvian economy something like a
blood vessel which for the moment is blocked. I would hope very much,
that the russian economy would be such, that they will take advantage
and use this crude oil pipeline. It is very hard to believe, that
a technical installation which costs billions of US-dollars is not
operating because of some political problems or difficulties.
I personally believe, that when the so called big transaction
regarding the oil transit business – a potential sale of this
business segment to an austrian investor could have a real impact
on the operating of the crude oil pipeline.
I believe once the oil transit sector is in new ownership hands
with new people being involved things will be possible which in the
past have not been possible. So I am even optimistic, that the crude oil
pipeline could be revived and that this could be again an important
and interesting factor for the latvian economy. Not only that it would
pay off by taxes being paid by latvian companies, but also to create
jobs and additional side-effects which would be very positive.
So my outlook for the transit business is positive in all sectors.
Just I believe, that some changes in the ownership and the
management structures would be benefitial.
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