RIGA, July 13 (LETA) - State forest management company Latvijas Valsts Mezi (LVM) has purchased 5,800 hectares of land for EUR 26.385 million, including 4,800 hectares of forestland in Pasiene County, Ludza Municipality, the Agriculture Ministry informed LETA.

The ministry notes that the transactions were registered with the Register of Enterprises last week, and that LVM has acquired two companies registered in Latvia, Gosk Latvia and Waldemark, whose sole asset is land and which were previously owned by Swedish citizens.

The Agriculture Ministry explains that, in accordance the applicable regulations, the acquisition of the companies required the approval of the Cabinet of Ministers, which LVM received on June 30.

The predominant tree species in the acquired forest property are spruce (approximately 1,600 hectares), birch (approximately 1,500 hectares), and pine (approximately 600 hectares). Approximately 80 hectares of the forest area are protected areas, while another 600 hectares are farmland.

Agriculture Minister Uldis Augulis (Greens/Farmers) explains that this transaction has a significant impact on sustainable forest management, regional economic development, and security. Managing such a large forest area ensures long-term, stable demand for local services, providing work for Latvian companies, stable incomes for families in Latgale, and increased economic activity along Latvia's eastern border.

The minister also emphasizes the location of the forest area in Latgale, noting that strengthening the state's presence and economic activity in this region is essential for economic development and national security.

"In the coming years, active management of these forests will create well-paying jobs for local residents and generate contracts for Latvian companies in forestry, timber processing, transportation, and other related sectors. Every euro invested in the region represents not only an investment in forestry but also a contribution to Latgale's economic development," said Augulis.