VZCZCXRO1750
PP RUEHIK
DE RUEHRA #0010 0061446
ZNR UUUUU ZZH
P 061446Z JAN 10
FM AMEMBASSY RIGA
TO RUEHC/SECSTATE WASHDC PRIORITY 6208
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS RIGA 000010 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELTN ECON PREL RS LG
 
SUBJECT: LATVIAN TRUCKERS PAY RUSSIAN CUSTOMS TO END DISPUTE 
 
¶1. A brief flare-up of tensions between Russian customs authorities 
and Latvian truckers appears to be headed for a resolution.  The 
Latvian Truckers Association has agreed to pay damages for alleged 
evasion of customs payments when entering Russia.  Association 
representatives say the Russians subjected Latvian trucks to lengthy 
checks at border crossings, causing days-long lines for Latvian 
trucks trying to cross into Russia.  Latvian customs officials 
expect Russia to end the increased scrutiny of Latvian truckers on 
January 11, when their payment of approximately 500,000 USD clears. 
 
 
¶2. On December 8, the Russian Federal Customs Service announced 
additional customs control measures against Latvian truckers. 
According to press reports, they claimed that Latvian trucks were 
failing to report at customs checkpoints once they were in Russia, 
in order to avoid paying customs fees.  Russia claims resulting 
losses of approximately 1.5 million USD.  The Latvian Truckers 
Association reported that the additional inspections - for example, 
individually calling the declared destination for shipped goods to 
confirm orders - had created significant delays for entry into 
Russia.  The GOL claimed it had revoked licenses of offenders and 
MFA requested an end to the tightened controls on December 16.  At 
its peak on December 23, the truck lines reached 1160 trucks and the 
expected waiting time for crossing the border was 105 hours.  The 
lines have dissipated due to the drop of transport flow after the 
holiday season.  However, Latvian customs noted that there are 
similar outstanding claims by Russian customs that could cause a 
repeat situation during the course of 2010 if not corrected. 
 
¶3. According to the Latvian Truckers Association, on December 29 it 
transferred approximately 500,000 USD to Russia to cover the losses 
created by Latvian truckers and is currently expecting reaction from 
the Russian side. However, Russian official institutions are on 
holidays until January 11, so there will be no change before then. 
According to the Association, the delays have caused losses of 
almost 4 million USD, and loss of long-term customers due to missed 
deliveries.  Although the Association sees this action by the 
Russian side as "obvious blackmail," they feel that from a business 
perspective they had little choice but to pay. 
 
ROGERS