Latvia Mulls Purchase of E.ON Stake in Latvijas Gaze

In a bid to keep Russian Gazprom at bay after Germany’s E.ON decided to sell its shares in Latvia’s gas company Latvijas Gaze, the Baltic state’s government mulls to take over the stake, with several media reporting Latvia could buy E.ON’s 47.2 percent stake.

A source in the Latvian government has confirmed the government is “seriously weighing the option” as a means to prevent Gazprom from acquiring it.

“We would not want to see the shares to fall into Gazprom or some other, not so well known, buyer’s hands,” Economy Minister Vjaceslavs Dombrovskis said.

That the issue is on agenda of the government was confirmed to Natural Gas Europe by the ministry’s Public Relations Division senior specialist Evita Urpena.

“The issue - to buy or not (to buy) the E.ON stake in Latvijas Gaze - is being discussed between Latvian governmental institutions. But at this moment the Ministry of Economics refuses to give any detailed comments regarding the question,” according to Urpena.

Meanwhile, Lithuania’s two state companies, Lietuvos Dujos and Amber Grid, have already bought 38.9 percent stake from Germany’s E.ON for a combined $154.2 mn.

The government hinted it may be selling some of its holdings shares to outside investors in the future.