Latvia unable to ban Russian grain transit amid risk of multimillion-euro lawsuits

Latvia is currently unable to impose a unilateral ban on Russian grain transit or increase railway infrastructure charges for such shipments by 300% due to legal and financial risks. According to government estimates, such measures could trigger lawsuits worth between €200 mln and €800 mln. This was stated by Latvian Prime Minister Andris Kulbergs following a government meeting.

The main obstacle is European Union legislation, which grants the EU exclusive powers over tariff and transit regulations. In addition, Latvia already has existing contracts covering the transportation of another 300 thsd tons of Russian grain. According to the prime minister, additional risks arise because grain of Russian origin often belongs to companies from the US, Switzerland and Japan by the time it reaches Latvia. These companies could defend their commercial interests through legal action.

During January–September 2026, a total of 593.66 thsd tons of Russian grain was transported through Latvia in transit. Meanwhile, neighboring Estonia banned the transit of grain from Russia and Belarus starting October 1. Latvian authorities explain the difference in approach by noting that Estonia had no existing contracts for such shipments when the restrictions were introduced, while Riga must take its contractual obligations into account.

Despite the legal obstacles, Latvia continues to seek restrictions on Russian grain transit at the EU level. Last week, representatives of Latvia, Estonia and Lithuania sent a joint letter to European Council President António Costa and European Commission President Ursula von der Leyen, calling for an EU-wide ban. The Latvian prime minister also plans to discuss the issue during talks in Brussels.

The transit issue has become particularly important as Russian grain flows shift from the Black Sea region toward alternative routes. Amid restrictions on maritime logistics, Russian exporters are increasingly using Baltic ports and transit routes through neighboring countries. However, the potential introduction of new EU-level restrictions could complicate these shipments and increase logistics costs for Russian grain exports.

Tags: Russia, grain, grain export, Latvia, rail transportation