Latvia's Gas Utility CEO to Step Down After 26 Years

Latvian gas utility Latvijas Gaze's chief executive will step down in August after 27 years, the company said on Friday.

 

Adrians Davis, 73, took up the post in 1989, two years before the Baltic state split from the former Soviet Union, and kept the job after the utility was privatized in 1997 and Latvia joined the European Union in 2004.

 

"His (Davis) term expires. Although he was put forward as a candidate, he doesn't agree to run for another term," Latvijas Gaze's spokesman Vinsents Makaris said.

 

Latvijas Gaze said in a statement that other two board members, Aleksandr Mihejev and Anda Ulpe, would also resign after serving on the board since 1997.

 

The Latvian government has announced plans to split the utility in two ahead of its gas market liberalization in 2017, a move which has been opposed by the current management.

 

Germany's E.ON has 47.2 percent stake in Latvijas Gaze and Russia's Gazprom owns 34 percent in the utility, which imports gas from Russia and operates one of Europe's biggest gas storages, Incukalns.

 

Latvijas gas trader Itera Latvija has another 16 percent.

 

E.ON is seeking to sell its stake, Latvia's officials have said.

 

The Luxembourg-based infrastructure investment fund  Marguerite, which has been named as a possible buyer, has declined to comment.