Unsanctioned Russian 'Mere' retailers flourish in Latvia, defying Polish sanctions
In a developing situation, the Latvian Ministry of Foreign Affairs is reviewing the Polish decision to sanction a Russian-owned company, Latprodukti, which manages Mere stores in Latvia. Diāna Eglīte, the spokesperson for the ministry, will assess the Polish decision and its reasoning, and if necessary, decide on appropriate action.
Latvia, along with other EU Member States, imposes sanctions against Russia, with these sanctions being binding on all EU Member States. The ownership of Mere stores by Russian entities, such as the Svetofor Group, has raised concerns within Latvia and the EU about compliance with sanctions. There is scrutiny over whether Mere stores source products from Russia or Russian-controlled supply chains, which could potentially violate EU sanctions or undermine their objectives.
The ongoing review comes amidst growing concerns about the potential loss of Polish market access when cooperating with individuals included in Polish sanctions packages, as highlighted by the Lursoft representative. The future of Mere stores in Latvia depends largely on regulatory actions by Latvian authorities and the EU. There may be increased pressure on the stores to sever ties with Russian suppliers, ensure transparency in product sourcing, and possibly face restrictions or closures if found to contravene sanctions.
Initially, Mere stores stocked mostly Russian and Belarusian products, but today they are in a minority but still present. For instance, a Mere store in Riga stocks Russian rubber slippers, salmon roe, black caviar, Belarusian syrups, corn puffs, breakfast cereals, board games, and other goods.
Despite the ongoing review, Diāna Eglīte did not mention any new information about the ownership or turnover of Latprodukti or Mere stores. However, it is known that Russian citizen Sergey Schneider owns 61% of Latprodukti, co-owned by his brother Andrey Schneider (12%) and several other persons. In 2023, Latprodukti had a turnover of EUR 20.6 million, an 89% increase from 2022, although specific information about Mere stores' profits was not found.
Eglīte also mentioned that proposals for sanctions against Russian war supporters are regularly made, and discussions among European Union Member States for the 17th round of sanctions have recently started. These developments are part of broader EU efforts to tighten economic controls on Russian-owned businesses in member states as part of sanctions regimes.
For up-to-date details on Mere stores in Latvia, including legal or commercial actions, checking official Latvian government announcements or EU sanctions enforcement news would be advisable.
- The European Union, along with Latvia, has imposed sanctions on Russian businesses, including the Russian-owned company Latprodukti, which manages Mere stores in Latvia.
- Amidst growing concerns about EU sanctions compliance, Latvia's Ministry of Foreign Affairs is reviewing the Polish decision to sanction Latprodukti.
- Businesses in Latvia, such as Mere stores, are under scrutiny for potentially sourcing products from Russia or Russian-controlled supply chains, which could violate EU sanctions.
- European Union Member States are discussing the 17th round of sanctions against Russian war supporters as part of broader efforts to tighten economic controls on Russian-owned businesses.
