Whether there is the Baltic unity?

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The train Allegro in Helsinki, Finland © AP Photo, LEHTIKUVA, Timo Jaakonaho

In board of companies "Reyl Baltika" (RB Rail), realizing the ambitious project on creation a trance - the Baltic railway line Rail Baltica — crisis. At the last meeting of shareholders two of three countries — Lithuania and Estonia — expressed no confidence the head of RB Rail Rubesa Bayba. The conflict passed into the public plane, and was not slow itself to wait for the answer. The European Commission let know — if the countries do not agree, Rail Baltica risks to lose financing EU. For the project worth 5,8 billion euros it will mean death.


the Rail Baltica Project — this very multidimensional equation in which for the detached onlooker there are a lot of unknown. In "the project of an eyelid" — and anything more ambitious in Baltic was not at least years 30 — interests of five countries intertwined: Poland, Finland, Lithuania, Latvia and Estonia. In it Europe with a sofinasirovaniye participates in rather generous volume. Large local players are involved in it in the market of rail transportation. And also self-government of edges, volosts, regions and the cities through which will pass iron it is expensive.


In 2015 to a post of the executive director and the head of board appointed the skilled manager and the negotiator — Rubesa Bayba which held many years leading posts in companies the Norwegian power giant of Statoil to Latvia, Azerbaidjan and Norway, and also in banks DnB Nord, Citadele and the German Volkswagen AG. Latvia for it — only one of stops on a course of life. But we will return to her personality closer to the end.


Who gives to

money, that and main?

A week ago Rubesa Bayba declared that its task — to represent interests of the project and to provide performance of the conditions set by Europe. The Baltic States will receive under the project 85% from 5,8 billion euros necessary for construction of the Baltic site of Rail Baltica, that is the little less than 5 billion euro. RB Rail actually plays a key role in distribution of the most part of means of the project.


Nevertheless, two of three Baltic shareholders Rail Baltica — Lithuania and Estonia — expressed Rubesa Bayba mistrust (the representative Latvia in a voting process refrained). Why? Rubesa Bayba say that it only reflection of that occurred round companies since the end of 2015 when it held the post. In a sharp phase opposition (first of all, with representatives Lithuania) passed only "somewhere since December". Approximately at the same time, to surprise Rubesa Bayba, "on 180 degrees" the position Estonia changed also. Now it actively supports Lithuania.


to Estonia replaced on December 15 the head of board of Rail Baltic Estonia OÜ — company was headed to Riyya Sillava. At the beginning of 2018 it — according to the principle of rotation of three countries — led the supervisory board of RB Rail into which enter on two representatives from Latvia, Lithuania and Estonia. The supervisory board which gathered right after meeting of shareholders, too had an opportunity to discharge to Rubesa Bayba, however it did not begin to do it.


Rubesa Bayba claim that to Riyya Sillava suggested it to write the application "at own will", but she refused and suggested to dismiss her the council decision. It did not occur. Now the destiny Rubesa Bayba will be solved at council meeting on March 22. If after it it remains in a position, almost for certain will finish at least till October, 2018 when expires her three-year contract.


to Riyya Sillava does not hide that "council is not happy with work Rubesa Bayba". "Rubesa Bayba successfully submitted the Rail Baltica project and paved the way for creation of new iron roads. Nevertheless, between the states and the project coordinator different interpretations concerning distribution of problems of this period and responsibility" are observed — she told.


However there is rather high probability of that Rubesa Bayba remains on the post at least till October, 2018. The matter is that the executive director of RB Rail has a strong ally. Last week the commissioner EU concerning transports Violeta Bults publicly called Latvia, and Estonia to compromise Lithuania


"At us in EU the accurate principle — "use or you will lose". I have many projects in which money because it is big money would be desirable to use yours … Do not forget that EU co-finances the Rail Baltica project approximately for 85 percent from its total cost. Tell, what else project at the level of EU achieved joint financing in such size? Please, do not miss such opportunity. I do not speak about the one who is right and guilty, we should find the solution and to move forward" — Bults declared.


Rubesa Bayba especially focus attention that this statement was made in Lithuania. In her opinion, the commissioner of European Commission told a maximum of that could tell publicly in this situation, and the place choice here is not so casual. The non-public rhetoric Brussels round the Rail Baltica project, according to her, is less diplomatic.


the History of opposition


All responsibility for the conflict in the management of RB Rail Rubesa Bayba assigns

to the Lithuanian party. From outside Lithuania she started feeling counteraction right after taking office, in 2015: "When as me employed, I asked council of that time in which there were absolutely other people [than now], I agreed that I have a right employing as board members, to choose them regularly personnel selection. But already at the first meeting in January, 2016 representatives of that time Lithuania, not that now, declared that no usual selection of the personnel will exist as they politically agreed that each country delegates the representative to board".


According to her, negotiations on this question lasted nearly a year. Rubesa Bayba defended the right to take professionals — RB Rail board today, according to her, consists not of political promoted workers. There was it not least because of representatives Latvia — to the Deputy Secretary of State of the ministry of messages Latvia to Caspar Brishkens and the head of the Latvian iron roads to Berzinsh Edwin — which supported her in this question.


Lithuania then was presented by the deputy of Diet and the head of "daughter" of the Lithuanian iron roads to Rail Baltica statyba Budris Daynyus, and also the representative of the Lithuanian iron roads Balinas Vaydotas. Representatives Estonia — the head of Rail Baltic Estonia of that time Orav Indrek and the ex-adviser to the Minister of Economics and communications Anti-Moppel — did not participate in dispute.


the Following basic dispute arose because of auditors in RB Rail. In companies there is a regular position for one person, however in the second half of 2017 council demanded from Rubesa Bayba the bigger — to increase number of auditors and to give a quota for each country. But also this issue to it managed to be resolved, without transferring it to the public plane. As a result, after long negotiations, in RB Rail Deloitte, the representative of Executive agency on innovations and to networks of EU, and also the State controlers of all three Baltic States is engaged in audit.


the Conflict of interests as a basis of crisis


However the root of problems, according to Rubesa Bayba, is covered in persistent desire of the Lithuanian party to receive more information on arranged RB Rail competitions and to influence them. And this with the fact that council of companies included representatives of companies who can potentially be both suppliers, and competitors of Rail Baltica. It is available the conflict of interests.


"At each meeting of council again and again brought up questions — generally from representatives Lithuania as former and present — about with what they want to see specifications of very specific purchases, RB Rail which were under authority" — she declared.


"I do not know that they wanted to offer, before we did not reach. On [our] internal procedures we offered them — and they did it — to transfer all offers of the commission on purchases" — she added. According to the head of RB Rail, the commission has to be independent, nobody can and should not dictate it a condition or receive from it technical information to the announcement competitions. The Lithuanian party "uncountable quantity of times", by words Rubesa Bayba, demanded it.


Rubesa Bayba claim that absolutely unexpectedly against it was up in arms and Estonia. The relation changed, in her opinion, from giving of the Deputy Secretary of State of the ministry of messages and communications Kuningas Akhti. And changed while RB Rail approached to the key moment — creation of the detailed business plan of Rail Baltica and development of the uniform engineering design within which company once again will check correctness of all plans, calculations and arrangements. Both projects — both the business plan, and "specification" — have to be finished this year. However the movement RB Rail to the purpose brakes council which companies do not allow to increase the staff for 50%, to 75 people.


All this, according to Rubesa Bayba, threatens existence of RB Rail as organization which is "key" to money EU in the project. She considers what exactly RB Rail has to announce competitions on key infrastructure projects and provide technical supervision of the project in all three Baltic States — as well as was conceived initially, at a stage of coordination of the project from EU.


Positions Lithuania, Latvia and Estonia are on this matter unknown — representatives of the countries prefer not to speak publicly. However, if to consider that they are dissatisfied with a position of head of RB Rail, it is possible to assume that they want more independence and controls over money in the countries. Rubesa Bayba it is convinced: it can lead to that the European money in general will leave Rail Baltica. Then, certainly, the project is doomed.


While company operates

of about 150 million euros a year, and any preferences to "local producers" is not going to do. By words Rubesa Bayba are "conceptual understanding" that those investments which in Rail Baltica are made not by EU, and Latvia, Lithuania and Estonia, have to in them and remain (including local representative offices in Riga were for this purpose created, Tallinn and Vilnius). But as a whole it regards not participation as of paramount importance "local", and quality and compliance to standards. Probably, it also is not pleasant to representatives Latvia, Lithuania and Estonia.

Should note br that the part of projects — for example, construction or reconstruction of stations and terminals (including the huge and most difficult project of reorganization of the station in Riga) — has not a direct bearing on RB Rail. However company at companies in these projects is representatives with a vote. But a separate big stumbling block is the first stage of Rail Baltica constructed in Lithuania. The country would like it to keep and to use for the new high-speed highway. Rubesa Bayba are considered by it improbable — it is a question of the single-track road which besides not fully conforms to standards of the second turn of the project. However, this question is in competence of European Commission.

by


As Rubesa Bayba it is connected with Latvia


One of keys to understanding of history the identity of head of RB Rail is. Whether it is possible to consider it or at least to suspect what it anyway lobbies interests of the Latvian businessmen or politicians? Authentically about such communications of it it is not known, but here some facts.


Latvia in council of RB Rail is presented by company to Eiropas dzelzceļa lMnijas which controls the ministry of messages Latvia (the same structure of representation and possession treats Lithuania and Estonia — anyway at the head of all ministry, responsible for transport). Politically this ministry is controlled by the Union green and peasants, "the gray cardinal" which is widely known mayor Ventspils, the millionaire Lembergs Ayvar. He repeatedly publicly opposed the Rail Baltica project as that, poetically calling it "a turn of the Siberian rivers".


on the other hand, Rubesa Bayba not only head RB Rail, but also is the member of council the state energy companies Latvenergo AS. There it, according to her, works "one day in a week", receiving "less than couple of thousands euros" a month. It salary in RB Rail — about 100 thousand euros a year.


last year it sold to

also the apartment in Riga, and real estate in Municipality of Kuldiga. Rubesa Bayba it explains with desire "to be exempted from property and need to operate it". She sold the Riga apartment also because wanted housing more. And it gained for the rural house of 375 thousand euros.


the House was offered by

for sale several years ago, and the son-in-law infamous to Latvia the businessman Shkele Andris bought it. The apartment in Riga at Rubesa Bayba the chairman of the board large bought construction holdings to LNK Industries Milov Artem. The profile of the works performed by companies by LNK Industries allows to assume that it will apply for a victory in the competitions connected with Rail Baltica. By words Rubesa Bayba, these transactions — "coincidence". She did not conduct negotiations on sale, bargains from her name were concluded by the lawyer.


the Compromise is possible? whether


the compromise in the situation which has developed round RB Rail Is possible? Rubesa Bayba it is categorical — the question of control behind purchases is too basic to make concessions. Control, according to her, has to remain with RB Rail. She emphasizes that the European Commission is taught by bitter experience which says — if there is a big project on some countries and at least 40% in it are made by joint financing of EU, financial abuses during its realization very much and are very probable.


the Situation usugblyaet that each such project is unique. There is no "user's guide", following to which would guarantee positive result.

to


Other guarding fact — Latvia, Lithuania and Estonia show chronic inability to work together and to put common interests over the private. Interview on Delfi TV began with an exchange of rhetorical questions. One of them of lips Rubesa Bayba sounded so: "Call to me though one joint project of the Baltic States which ended successfully? ".

Analysis
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Rubesa Bayba
Berzinsh Edwin
Budris Daynyus
Balinas Vaydotas
Orav Indrek
VAG
Main activity:Transport
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Latvenergo AS
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