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tax evasion. 315 Despite the intensification of economic relations, certain concerns
have increased regarding Latvia’s asymmetric dependence on Russia.
These concerns have been raised in the media and in public discussions. In the
everyday practice of politics and business, however, the dominant opinion is that
the opportunities offered by economic cooperation with Russia should be taken.
4.6.1 Trade
Trade between Latvia and Russia has not been particularly influenced by
political relations and it has been growing since 2004. About 70 per cent of
Latvia’s economic relations are with other EU member states, but Russia still
plays an important role in Latvia’s foreign trade. Statistical data from 2012
indicate that Russia was the second-biggest export and third-largest import
partner for Latvia. Exports to Russia constitute 12.4 per cent of total Latvian
exports. Meanwhile, the import of goods and raw materials from Russia
amounted to 10.7 per cent of total imports. 316 Latvia’s main exports to Russia in
2012 were food products, machinery, and mechanical and electrical equipment.
The main imported goods from Russia in 2012 were mineral products, including
oil and gas (49.2 per cent), and metals and metal products (23 per cent). 317
Recently, the number of tourists from Russia visiting Latvia has increased. In
February 2013, the State Enterprise Register of Latvia registered 4033 Russian
companies with investment in stock capital. Russia is ranked sixth in the volume
of investments in stock capital in Latvian companies. 318
For several years, Russia’s representatives have been giving hints that bilateral
relations, especially in the area of economic cooperation, would rapidly improve
if pro-Russian political parties were included in the government coalition. The
pro-Russian Harmony Centre was close to entering the government coalition at
the end of 2011. Although this did not happen, economic relations developed at a
relatively good pace. Latvia has often been criticized for not fully taking
advantage of its geographical location and not getting the most out of
cooperation with Russia. A study by two economists, Vjaceslavs Dombrovskis
and Alf Vanags, Latvian-Russian Relations: Domestic and International
Dimensions, states that despite the political rhetoric, in reality there have been
315
See Bilateral Agreements, available at http://www.am.gov.lv/lv/Arpolitika/bilateral/, last accessed
on October 13, 2013.
316
See Latvian and Russian bilateral relations, http://www.am.gov.lv/lv/Arpolitika/divpusejasattiecibas/Krievija/#ekonomika.
317 Ibid.
318 Ibid.
101