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RIGA, Oct 29 (LETA) - Minister of Transport Atis Svinka (Progressives) has decided not to proceed with the write-off of the Ventspils Port Authority's EUR 14.8 million debt to the State Treasury, according to a post on the X platform.

He stresses that the impact of Russian aggression and sanctions is not solely to blame for the dilapidated infrastructure of the Port of Ventspils, which requires investments of up to EUR 100 million.

"More than 35 years of 'management', during which the infrastructure of the city of Ventspils has been maintained with port funds, European funds and state aid, have contributed to the port's own underdevelopment when compared to other Baltic ports," the minister writes.

The Minister plans to gather information this week and meet with the Union of Greens and Farmers' parliamentary faction and the For Latvia and Ventspils MPs next week to discuss possible solutions.

The Ministry of Transport told LETA that more information on solutions would follow shortly.

Ventspils municipality later responded to Svinka by insisting that it could not be held responsible for the port's financial difficulties as it had not been involved in decision-making since January 2020.

While the municipality had influence in the port, the Freeport of Ventspils Authority had always fulfilled its obligations to repay the loans, but now the port authority is only able to pay its bills "because the government has postponed the repayment of the loans for four years".

Ventspils City Council, which is led by For Latvia and Ventspils party formed by Aivars Lembergs, believes that the situation in the port changed in a negative direction in December 2019, when the state took over its management and the municipality lost influence.

"The successful development of the Port of Ventspils is possible only in close cooperation between the state and the municipality, as it has been historically, therefore the Ventspils municipality calls on the Transport Ministry to work constructively and purposefully together for the future of the port," said the statement issued on behalf of the municipality.

TV3 previously reported that the Greens/Farmers are calling for the Ventspils Freeport Authority's debts to be written off, which exceed EUR 19.9 million, most of which are loans from the State Treasury.

According to the Greens/Farmers, the debts were incurred at a time when the port was managed solely by the state and should be cleared before the municipality returns to managing the port.

TV3 reported that the Finance Ministry and the State Treasury are cautious about the idea, pointing to possible unauthorized state aid and the need for a special law to write off some of the liabilities.

In 2024 the Port of Ventspils terminals handled a total of 8.234 million tons of cargo, which is 21 percent less than in 2023.

The Port of Ventspils is the second largest port in Latvia in terms of cargo handled.