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In 2012, accumulated FDI from Russia in Latvia was EUR 285.3 million, while
Latvia’s accumulated FDI in Russia was EUR 32.6 million. 323 The biggest share
of investment from Russia was in the energy sector (27.4 per cent), while 26.3
per cent of Russia’s investment in Latvia was in financial services and 14.9 per
cent in real estate. 324 In comparison, Russia’s FDI in the industrial sector
accounted for only 9.4 per cent of total investment. 325
The biggest companies/investors in Latvia’s economy are major companies in the
energy sector and financial services. Cooperation in the energy sector has its
origins in the connected oil and natural gas infrastructure of Soviet times, while
Latvia’s membership of the EU has stimulated the interest of Russian banks. 326
According to official statistics, the share of Russia’s cumulative investment in
Latvia is about 3.5 per cent of total investment. With the exception of Latvijas
Gaze, Russian investors have played a minor role in the privatization process in
Latvia. At the same time, there is some indirect evidence to suggest that
investment flows between Russia and Latvia are partly conducted through third
countries. 327
The attempt by the Russian company Sveza to buy Latvijas Finieris is a recent
case of undesirable investment from Russia in the light of its economic strategy
towards the Baltic states. Sveza is a private company that is considered to be the
world leader in birch plywood manufacturing. The company is co-owned by
Leveret Holding (Austria), a closed joint stock company, Severgrupp, FINKOM
Ltd and Russian citizens. 328 The Deputy Director General of the Sveza Group
company, Sveza-Les, is Boris Frenkel, who worked for the Russian government
as assistant to the prime minister in 2000–2006. 329 Shareholders in Latvijas
Finieris argued that the Russian company had no intention of developing
infrastructure or improving its financial performance, but was aiming to move
323 See Latvian and Russian bilateral relations, http://www.am.gov.lv/lv/Arpolitika/divpusejasattiecibas/Krievija/#ekonomika.
324 See Latvia’s Economic Cooperation with Russia,
http://www.liaa.gov.lv/uploaded_files/EKSPORTETAJIEM%20sadala/Krievija/2012.03.LV_Krievij
a_ekon_LIAA.pdf.
325
Ibid.
326
Zeltins A. (2012): ‘Business Interests in the Latvia-Russia economic relationship’, in Spruds A.,
[ed.], The Economic Presence of Russia and Belarus in the Baltic States: Risks and Opportunities.
Riga: CEEPS, LIIA, p. 119.
327
Jakobsons A. (2012): ‘The economic dimension of bilateral relationships between Latvia, Russia
and Belarus – past and present’, in Sprūds A. [ed.], The Economic Presence of Russia and Belarus in
the Baltic States: Risks and Opportunities. Riga: CEEPS, LIIA, p. 31.
328 See “Sveza postuchit po derevu”, 12 July 2013, Kommersant,
http://www.kommersant.ru/doc/2231401.
329 See Frenkel, Boris, Delovaia Rossia, http://www.deloros.ru/main.phpmid=249&doc=24202.
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