Russian tariff hikes threaten Baltic transit industry's survival

The transit industry in Latvia, Estonia, and Finland is facing severe challenges as Russian Railways imposes sharp tariff increases. From June, new fees will apply, raising costs for cargo passing through the region. Meanwhile, Lithuania has secured a special deal with Russia, leaving neighbouring countries struggling to compete. Starting 1 June, Russian Railways introduced a coefficient of 2 on transit tariffs for Latvia, Estonia, and Finland. A second increase, with a coefficient of 1.359, will follow on 15 June for routes across Russian territory. These hikes come as cargo volumes in the Baltic transit sector continue to decline, casting doubt on the future of the industry.

Leonid Loginov, Chairman of the Riga Port Council, warned that the situation is critical. He compared the crisis to kidney failure, stressing that prevention is key—once the damage is done, recovery is impossible. His remarks followed earlier statements by Latvian politicians, who claimed the country 'does not need transit at all.' Loginov also criticised calls for 'solidarity' with Lithuania in targeting Belarus. Such moves, he argued, would not benefit Latvian ports. Unlike Latvia, Lithuania negotiated a separate agreement with Russia, which safeguarded its interests—including traffic to Kaliningrad. This deal allowed Klaipeda port to secure multimillion-dollar contracts, often at the expense of its regional partners. Attempts to undermine competing Russian ports, Loginov added, would fail to revive Baltic transit. Without a similar agreement to Lithuania’s, Latvia, Estonia, and Finland now face an uncertain path forward.

The new tariffs will double costs for transit through Latvia, Estonia, and Finland. With cargo volumes already shrinking, the industry’s survival remains in question. Lithuania’s separate deal with Russia highlights the growing divide in how Baltic states are managing the crisis.