Latvia marked a significant milestone on Monday as the first ship carrying its strategic oil reserves arrived at the port of Riga, the Economics Ministry announced.
This delivery represents a key step in Latvia’s transition to a new oil reserve management system, the ministry said. The shift aims to bolster the country’s energy security, strengthen resilience to economic crises, and cut long-term costs.
Previously, Latvia relied on purchasing crude oil options to meet its reserve needs, an arrangement that had become increasingly expensive in recent years. In January 2024, the Economics Ministry introduced a new oil reserve purchasing procedure, replacing the reliance on options with direct ownership of oil reserves.
Under the new system, the Latvian state will progressively acquire oil product reserves each year, moving away from options-based procurement. By 2029, the country will fully own 100 percent of its oil reserves in real terms. This approach is expected to save Latvia 877 million euros (920.8 million U.S. dollars) over the next decade, according to the ministry. (1 euro = 1.05 U.S. dollar) ■