527 REPORT: EMBASSY RIGA SUBMISSION

UNCLAS RIGA 000369 SIPDIS DEPARTMENT FOR EEB/IFD/OIA (GOETHERT) E.O. 12958: N/A TAGS: EINV CASC KIDE OPIC PGOV LG SUBJECT: 527 REPORT: EMBASSY RIGA SUBMISSION REF: STATE 49477 ¶1. Post is aware of two (2) outstanding claims of United States persons against representatives of the Government of Latvia. The claims are being adjudicated in the Latvian courts. ¶2. a. Claimant A b. 2004 c. According to Claimant A, it obtained a lease for a parcel of land in Gudenieki district that included rights for oil exploration and extraction. Three years later, the local government attempted to repudiate the contract. The lease rights were then transferred to a third party with connections to government officials. The issue of whether the local government can nullify the contract is currently being considered in the courts. According to statements made by the Claimant, the claim was rejected by a lower court and by an appellate courts on subsequent appeals. The judiciary most recently upheld the ruling against the claimant in October 2008. . Claimant indicated his intention to continue pursuing appeals. Information was last received on the claim in June 2009. ¶3. a. Claimant B b. 2008 c. According to Claimant B, it purchased a parcel of land from the Ministry of Finance in Riga, with the understanding that the parcel included the right to access from the nearest street via an adjacent property. The right to access was not recorded in the land registry, preventing the claimant from any access to the land or ability to use or develop it. Claimant sued the government for access and won, but the Government has filed an appeal, which will not be heard until 2010. The Government argues tht it cannot grant the right to access via the adjacent property, which is now owned by a third party. Post has arranged multiple meetings with the GOL and inquired about the claim with several agencies. Information on this claim was last received in May 2009. ¶4. Claimant A; Otis Armstrong (US Citizen). Claimant B: Baltic Capital Management, a US-owned firm. ROGERS