The Joint Stock Company “Latvijas Gāze” has gotten acquainted with the story about the Joint Stock Company “Latvijas Gāze” broadcast on LTV’s “De facto” on February 4, 2024 and in this regard announces the following.
The inclusion of two members of the Council of the Joint Stock Company “Latvijas Gāze” in the UK financial and related sanctions lists does not prevent the Joint Stock Company “Latvijas Gāze” from taking part in procurements held by public service providers (Section 111 Paragraph one of the Law on International Sanctions and National Sanctions of the Republic of Latvia) as these sanctions do not affect the fulfilment of the potential procurement by the Joint Stock Company “Latvijas Gāze”.
It is the direct ownership of over 25% by the PJSC “Gazprom” that prevents the Joint Stock Company “Latvijas Gāze” from doing so (Section 48 Paragraph two Clause 3 of the Law On the Procurement of Public Service Providers). The said restriction would not apply if the client (the public service provider) held the procurement beyond the scope of the law. In the context of natural gas supply, such potential exceptions are set out in Section 10 Paragraph one Clause 16 and 17 of the Law On the Procurement of Public Service Providers. The natural gas market in Latvia has shrunk. In 2023, according to the Central Statistics Bureau, the total natural gas consumption in Latvia was 8,405.7 GWh, most of which was the natural gas consumed by the JSC “Latvenergo” for own needs. When it comes to competing for the remaining market segment, non-participation in public procurements has not left a substantial impact on the business of the JSC “Latvijas Gāze”.
The Joint Stock Company “Latvijas Gāze” confirms that its business activity of providing natural gas trading and supply services complies with the regulatory enactments (including laws, regulations, resolutions) of the Republic of Latvia, the European Union and the United Nations involving and/or associated with the application of sanctions and other restrictions to a number of individuals, jurisdictions and territories, as well as the US regulatory enactments involving and/or associated with the application of sanctions and other restrictions.
Joint Stock Company “Latvijas Gāze”
Board
Riga, February 7, 2024
About the JSC “Latvijas Gāze”
Founded in 1991, JSC “Latvijas Gāze” is one of the leaders of the Baltic energy sector and provides the wholesale and sale of natural gas to business customers in Latvia, Estonia, Lithuania and Finland. In the household segment, AJSC “Latvijas Gāze” is the largest and most prominent natural gas trader in Latvia. The company has been listed on the NASDAQ Riga stock exchange since February 15, 1999 – a proof of high standards in terms of transparent governance, responsibility, and care for its customers, investors, and the society as a whole.
Further information:
Sandra Joksta
investor.relations@lg.lv; phone + 371 67 374 369
