Latvia approves potential fee hikes for Russian grain transit

The Latvian Saeima has passed amendments to the Railway Law that allow for a rapid review and potential increase of infrastructure fees for grain transit originating in Russia. The new regulations enable the government to adjust these fees within two weeks, rather than the previous two-month notice period.

LatRailNet is tasked with reviewing the applicable fees for specific shipments within one week, following consultations and economic justifications. The government has recommended a 300 percent increase in these fees, a move that some observers suggest could act as a de facto ban on Russian grain transit. The regulation applies to shipments where Russia is listed as the station of departure, regardless of the declared origin of the grain or the nationality of the carrier.

Any additional revenue generated from these increased fees is intended to be redirected to support Ukraine, though specific spending decisions are pending. While the policy aims to discourage Russian transit and fund Ukrainian aid, officials acknowledge it could reduce overall cargo volumes on Latvian railways and impact the revenues of transport companies.