Call for government support for Daugavpils industrial plant

The Ukrainian Infrastructure Ministry and the owners of Azovstal steel plant have appealed to the Latvian government to support Daugavpils Lokomotivju Remonta Rupnica (Daugavpils Locomotive Repair Plant, DLRR), the LETA newswire reported May 17, citing representatives of DLRR.

At the beginning of May, Ukrainian Infrastructure Minister Oleksandr Kubrakov sent a letter to Latvian Transport Minister Talis Linkaits (Conservatives) stating that "DLRR's experience accumulated over the years, unique operations and ability to provide a full range of services will be crucial in rebuilding Ukraine's railroad infrastructure after the war."

Management of DLRR's partner, Ukrainian company Metinvest, has also sent an official letter to the Cabinet of Ministers of Latvia, pointing to the strategic importance of DLRR in reconstruction of the damaged rail infrastructure and equipment of Ukraine.

In his letter, Kubrakov points out that there are targeted attacks on Ukrainian railroads and infrastructure. The letter says that Ukraine's ability to repair rolling stock and locomotives is limited, as Ukrainian plants and other strategic facilities are regularly threatened by explosions and targeted attacks.

In his letter, Kubrakov says he hopes for cooperation with countries supporting Ukraine and their companies, pointing out DLRR is one such strategically important company in Latvia. It could provide repairs to rolling stock of the Ukrainian railroad company Ukrzaliznytsia.

Last week, Metinvest Director General Aleksandr Gerasimchuk also sent a letter to the government of Latvia, stating that the company had been informed about financial difficulties faced by DLRR.

Gerasimchuk also emphasized repairs of railway equipment in Ukraine had become completely inaccessible as a result of the war. DLRR is currently one of the key partners of Metinvest, and the company is interested in the Daugavpils plant continuing to fulfill orders, providing repair and modernization of locomotives.

Metinvest also owns Azovstal steel plant, which is currently besieged by Russian armed forces.

DLRR and its subsidiaries SIA LokRem, SIA DL Metal and SIA Logkom at the end of March sent an application to the State Employment Agency on a collective lay-off of 240 employees.

They point out that the Russian war in Ukraine has severely affected the work of DLRR. Metinvest Group's indebtedness to DLRR currently amounts to EUR 8,229,550 for orders placed on the Ukrainian market.

Representatives of the DLRR point out that the company has repeatedly approached the Prime Minister of Latvia, the Ministers of Economy, Finance, Welfare, Foreign Affairs, Defense and Environmental Protection and Regional Development, as well as the Development Finance Institution Altum, explaining the situation and calling for cashflow support, LETA said.

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