Ventspils nafta                                        07.01.2005.



On the visit of the Minister of Economics K.Kariņš



Yesterday, on 6 January 2005, with a previously announced goal of acquainting 

with the management of the holding company a/s “Ventspils nafta”, which is 

partially owned by the state of Latvia (38,6% of the public issue shares belong 

to the state a/s “Latvijas Privatizācijas Aģentūra”), a/s “Ventspils nafta” and 

its 100% subsidiary company SIA  “Ventspils nafta” termināls” were visited by 

recently appointed Minister of Economics Krišjānis Kariņš. There are four 

Council members of a/s “Ventspils nafta” nominated by a/s “Latvijas 

Privatizācijas aģentūra” – Mārtiņš Jansons, Romāns Mežeckis, Voldemārs Strīķis, 

Eižens Cepurnieks, who are in the mentioned positions since August 2003, 

when the Prime Minister was Einārs Repše, the head of 

the party Jaunais laiks, whose member is also Krišjānis Kariņš.



A/s “Ventspils nafta” as a public stock company, according to 

law and practice ensuring equal rights of shareholders irrespective 

of the fact whether the shareholder is a private investor or a 

state institution looked at the visit of K.Kariņš as a desire 

of one shareholder to acquaint better with operation of the company. 

During the meeting the management of a/s “Ventspils nafta” did not 

discuss issues, which had not been supplied to all shareholders 

according to the regulations of information forwarding with the 

assistance of the Riga Stock Exchange. 



The meeting of the chairman of the Council of a/s “Ventspils nafta” 

Mamerts Vaivads, deputy chairman of the Council of a/s “Ventspils nafta” 

Vladimirs Solomatins, chairperson of the Board of a/s “Ventspils nafta” Olga 

Pētersone and K.Kariņš was business-like and constructive. K.Kariņš was 

acquainted with the structure of the holding company a/s “Ventspils nafta”, 

situation in the transit companies of the corporation and informed on 

allready announced profit prognoses of a/s “Ventspils nafta” for 2004 and 2005. 



K.Kariņš positively evaluated the contribution made by a/s “Ventspils nafta”, 

by implementing the risk diversification programme in order to reduce depending 

of the financial indices from the politically economic risks that are 

connected with the direct link of a/s “Ventspils nafta” transit industry 

companies with the developments in one state – the Russian Federation. 

K.Kariņš especially assessed investments of a/s “Ventspils nafta” 

in real estate.



K.Kariņš underlined as well that without the risk diversification 

the Russian economically ungrounded closing of oil pipeline in Ventspils 

direction would have generated more serious consequences for business of 

a/s “Ventspils nafta” corporation. “State understands that there are very 

valuable assets in “Ventspils nafta” despite some of them are not very profit 

making at the moment,” said K.Kariņš. 



The chairperson of the Board of a/s “Ventspils nafta”, informing on the 

results of the risk distribution policy, reminded that in comparison with 

2003 when oil flow through pipeline has been terminated, a/s “Ventspils 

nafta” corporation will end the years 2004 and 2005 with profit.



K.Kariņš expressed understanding of the management of a/s “Ventspils nafta” 

to develop entrepreneurship underlying on his part the interests of the state 

in this concrete company, at the same time emphasizing repeatedly that the 

state should not do business. K.Kariņš expressed opinion that the state 

and the private shareholders of a/s “Ventspils nafta” have common interests 

and that it would be efficient for all shareholders to agree on a solution 

beneficial for all parties. This view was also met by M.Vaivads 

and V.Solomatins, who represent in the Council of a/s “Ventspils nafta” the 

largest shareholder – a/s “Latvijas naftas tranzīts” (42,3% of the shares 

of a/s “Ventspils nafta”).



M.Vaivads as well as V.Solomatins emphasized that renewal 

of oil flow by pipeline in Ventspils direction is necessary for increase of 

total value of a/s “Ventspils nafta” corporation and separate transit 

companies – SIA “Ventspils nafta” termināls” and SIA “LatRosTrans”.



Repeating the already expressed view M.Vaivads indicated that for realization 

of this goal there is a need to attract a strategic investor, who would have 

resources and possibilities to renew oil flow by pipeline. Although, sale of 

shares is not a goal in itself – at first there should be a complete guarantee 

that oil transit is renewed and only then there could be an agreement with 

all interested parties – state and private shareholders of the owner of 

SIA “Ventspils nafta” termināls” - a/s “Ventspils nafta” – and the potential 

strategic partner – on expedient model of the possible deal. “However, serious 

offers in this respect we have not received until now,” said M.Vaivads. 



K.Kariņš visited the subsidiary company of a/s “Ventspils nafta” – the most 

up-to-date oil and oil products transhipment terminal in the Baltics – SIA 

“Ventspils nafta” termināls”. Its territory totals in 90 hectares and there 

is the largest oil and oil products storage tank park in the Baltic states with 

the total storage capacity of 1.2 mln cubic meters, as well as four railway 

racks for receipt of oil and oil products. More than 200 mln. USD have been 

invested in modernisation of the terminal since privatisation in 1998.



Despite termination of oil flow by pipeline in Ventspils 

direction, SIA “Ventspils nafta” termināls” works actively with railway cargoes 

significantly increasing product amounts in comparison with 

the time when the terminal transhipped also oil received by pipeline. 

Offering new services, SIA “Ventspils nafta” termināls” tranships oil 

of two different types, gas oil and gasoline of three types.



JSC Ventspils nafta

For information –

Gundega Vārpa,

Telephone 7229793;

e-mail: gundega.varpa@vnafta.lvrpa,

Telephone 7229793;

e-mail: gundega.varpa@vnafta.lv