FOI-R--3990--SE_reducerad

FOI-R--3990--SE
connected with Russia’s political elite, there is a fear that under certain
conditions excessive economic dependence could be leveraged to achieve
Russia’s political goals in Latvia.
Zeltins points out that Russian capital tends to promote an “offshorization of
Latvia”. Transparency issues could also be highlighted in the light of the
corruption associated with particular investments. Transparency International
published the Bribe Payers Index in 2011. It states that Chinese and Russian
firms are the most likely to pay bribes while operating abroad. 341 Another
characteristic of Russian business culture is that a successful business almost
cannot exist without the participation of political mediators – big business goes
hand in hand not only with bribes but also with politics. 342
One way for Russia to support its interests in Latvia is to establish relations with
economic groupings that have close ties with political parties in Latvia. Before
the parliamentary elections of 2010, three political parties had direct links with
the Latvian tycoons or oligarchs who, according to press reports, had deep
business interests in Russian businesses in Latvia or Russia itself. 343 If political
processes are affected by private business interests, there is the potential for
political corruption. Meanwhile, if political influence is used to promote Russia’s
(or its businesses’) interests in exchange for personal gain, this should be treated
as a concern for national security. Safeguards and restrictions at the institutional
level are sometimes avoided because of the close links between politicians and
the economic elite, thereby intensifying the risk of corruption and damaging the
role of institutions in economic interactions. 344
4.7 Energy Policy and the Gazprom Lobby
Latvia’s dependence on Russian natural gas supplies makes its economy
vulnerable and limits its foreign policy options. Nonetheless, in relations between
Latvia and Russia there have been no serious conflicts connected to energy
issues.
After the economic crisis in Russia in 1998, Latvia quickly redirected its external
trade towards the EU member states, but this was not possible in the energy
sector. Latvia, like the other Baltic states, is an energy island that is still
separated from the EU energy supply network. This is true for both electricity
341
Transparency International (2011): Bribe Payers Index 2011, October 2011,
http://www.transparency.org/news/pressrelease/20111025_launch_bpi_2011.
342 Spruds A., [ed.)] (2012): The Economic Presence of Russia and Belarus in the Baltic States: Risks
and Opportunities, Riga: CEEPS, LIIA, p. 296.
343
Pelnens G. & Potjomkina D. (2012): ‘The Political implications of Latvia’s economic relations with
Russia and Belarus’, in Spruds A., (ed.), The Economic Presence of Russia and Belarus in the Baltic
States: Risks and Opportunities, Riga: CEEPS, LIIA, p.187.
344
Ibid. p. 188.
106