{"id":98788,"date":"2026-05-19T00:50:53","date_gmt":"2026-05-19T00:50:53","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=98788"},"modified":"2026-05-19T07:08:51","modified_gmt":"2026-05-19T07:08:51","slug":"corruption-probe-shakes-latvias-forestry-sector-over-timber-pricing-scheme","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/corruption-probe-shakes-latvias-forestry-sector-over-timber-pricing-scheme\/","title":{"rendered":"Corruption probe shakes Latvia\u2019s forestry sector over timber pricing scheme"},"content":{"rendered":"<p data-start=\"88\" data-end=\"392\"><!--more-->Raivis Kronbergs has resigned as director of Latvia\u2019s State Chancellery, just four days after being detained by the country\u2019s Corruption Prevention and Combating Bureau (KNAB) in an investigation linked to discounted long-term timber supply contracts at state forestry company Latvijas Valsts Me\u017ei (LVM).<\/p>\n<p data-start=\"394\" data-end=\"652\">The resignation was agreed with outgoing Prime Minister <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Evika Sili\u0146a<\/span><\/span>, according to Latvian public broadcaster reports. Deputy director for legal affairs Inese Gail\u012bte will assume the role temporarily until a replacement is appointed.<\/p>\n<p data-start=\"654\" data-end=\"924\">The investigation centres on a Cabinet decision made in late 2023 that required LVM to apply substantially lower weighted-average prices to long-term softwood sawlog contracts from January 2024, instead of the higher prices originally secured through auction procedures.<\/p>\n<p data-start=\"926\" data-end=\"1160\">Latvia\u2019s Prosecutor General\u2019s Office is examining possible abuse of office and negligence connected to the alleged unlawful granting of state aid. Authorities estimate the pricing changes reduced LVM revenues by more than \u20ac30 million.<\/p>\n<p data-start=\"1162\" data-end=\"1391\">KNAB detained Kronbergs together with Agriculture Minister <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Armands Krauze<\/span><\/span> on 14 May during procedural actions that included searches at their homes and workplaces. Both men were later released the same day.<\/p>\n<p data-start=\"1393\" data-end=\"1615\">The detentions came hours before Sili\u0146a announced her own resignation and dismissed Krauze from the cabinet, a move that effectively collapsed the governing coalition ahead of parliamentary elections scheduled for October.<\/p>\n<p data-start=\"1617\" data-end=\"1913\">According to information circulating in Latvian media, the report supporting the timber price reductions was prepared by Krauze together with Kronbergs while the latter was serving as state secretary at the Agriculture Ministry and acting as the state representative overseeing LVM shareholdings.<\/p>\n<p data-start=\"1915\" data-end=\"2212\">LVM\u2019s management had reportedly warned before the Cabinet vote that the changes could amount to wasteful use of state resources and potentially violate EU state-aid rules. The pricing decision is estimated to have reduced the company\u2019s quarterly profit by \u20ac7.54 million from the beginning of 2024.<\/p>\n<p data-start=\"2214\" data-end=\"2419\">Further scrutiny emerged after investigative programme <em data-start=\"2269\" data-end=\"2285\">Nek\u0101 person\u012bga<\/em> reported that additional contract discounts worth around \u20ac12 million may have benefited the PATA group controlled by Uldis Mierkalns.<\/p>\n<p data-start=\"2421\" data-end=\"2669\">An internal Agriculture Ministry review later concluded that the timber companies receiving the reductions were not facing systematic or structural financial instability during 2023, despite competitiveness concerns cited in support of the measure.<\/p>\n<p data-start=\"2671\" data-end=\"2842\">The Prosecutor General\u2019s Office, Latvia\u2019s State Audit Office and the Competition Council are now conducting parallel reviews into the legality of the pricing arrangements.<\/p>\n<p data-start=\"2844\" data-end=\"3149\">The case has added pressure to Latvia\u2019s forest sector, which remains the country\u2019s largest industrial industry. Forests cover around 53% of Latvian territory, while wood and forest product exports reached \u20ac3.3 billion in 2023, accounting for 17.3% of total export value despite a decline from 2022 levels.<\/p>\n<p data-start=\"3151\" data-end=\"3466\">The investigation also comes as Baltic timber supply chains continue to face wider scrutiny over traceability and origin controls. Latvia has been among the countries mentioned in recent wood-DNA investigations examining the alleged movement of Russian timber into European and UK supply chains under Baltic labels.<\/p>\n<p data-start=\"3468\" data-end=\"3678\">Kronbergs became director of the State Chancellery in August 2024 after previously serving as state secretary at the Agriculture Ministry during the period when the disputed LVM pricing mechanism was developed.<\/p>\n<p data-start=\"3680\" data-end=\"3779\" data-is-last-node=\"\" data-is-only-node=\"\">Latvia\u2019s Prosecutor General\u2019s Office has confirmed that the criminal investigation remains ongoing.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98789,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - 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