"Ventspils  nafta",  in  the  capacity  of  the  largest shareholder of

"Latvijas  kuģniecība",  was  the  initiator  of the general meeting of

shareholders  on  November  7,  2002.  The  purpose  was  to  introduce

adjustments  in  the  company  2002  budget,  caused  by  the  amicable

settlement  in  the  so-called  Gdansk  shipyard  case.  It  should  be

considered  that  the  adjustments  needed  to  be  made  to  "Latvijas

kuģniecība"  budget  have  a  significant  impact  on "Ventspils nafta"

consolidated  balance  sheet  as well: hence, it was critical to review

the issue in the general meeting of shareholders.

 "Latvijas  kuģniecība"  general meeting of shareholders also will make

changes in the Supervisory and Management Boards due to the resignation

letters  received  from some of the members (other than those nominated

from  "Ventspils  nafta").  The  general  meeting  will  also make some

amendments  to  the  Company  Charter,  the main being cutting down the

number of management board members from six to five.