The explosion of the Baltic bubble may splash Lithuanian entrepreneurs working in Latvia Business

The Latvian government’s decision on Friday will determine the future of the Baltic bubble: the leaders of the neighboring country are considering adding Lithuania and Estonia to the list of countries to isolate from, where the number of coronavirus cases has risen sharply.

This is bad news not only for the residents of Lithuania, who are attracting their neighbors more than ever this year, but also for the country’s businesses. Lithuanian companies regard Latvia as their home market, which is why most of the Lithuanian entrepreneurs who are expanding abroad invest here.

Some Lithuanian companies, especially traders (Maxima, Apranga or Kesko Senukai) even occupy leading positions in these markets, often outperforming local players.

Therefore, business trips to a neighboring country are an important part of the job of managers of Lithuanian companies doing business in Latvia.

Leaders live between Lithuania and Latvia

If Latvia forces Lithuanians to isolate themselves, Lithuanian companies in Latvia managed from Lithuania will experience greater inconvenience.

In this way, the poultry business in Latvia is managed by the Linas Agro Group. One of the largest Lithuanian agricultural groups in Latvia has 15 companies, 5 of which are poultry companies.

How 15 minutes Andrius Pranckevičius, deputy general manager and director of poultry business at Linas Agro Group, said that five top-tier Lithuanians, who travel to the neighboring country almost every week, work regularly in Latvia; they work in Latvia on weekdays and return home on weekends. So if restrictions are put in place, they just won’t be able to go to work.

“For other companies in the group, closing the borders is less relevant, because the managers are Latvians. They don’t have a lot of meetings: monthly or even quarterly. And with poultry farms it is different: the members of the board of directors of the poultry companies are Lithuanian, ”he said.

Transferred business management in Latvia to a special working group

It is true that this time the company management does not dramatize the situation, because it was in exactly the same situation during the spring quarantine.

“It won’t be a problem, because we had a similar situation in the spring. We learned to organize meetings and meetings at a distance. The entire board, which is made up of Lithuanians, will have to stay in Lithuania and manage companies remotely. Business trips are not planned, ”emphasized A. Pranckevičius.

The entire board, which is made up of Lithuanians, will have to stay in Lithuania and manage companies remotely. No business trips are planned – said A.Pranckevičius.

In preparation for possible changes from Friday, the managers of Linas Agro Group on Thursday have just drawn up a plan on how the work and management of companies in Latvia will be organized.

A.Pranckevičius was glad that now there is no need to create anything again, only to restart the plan drawn up in the spring.

“An emergency working group was created in it, to which the management of the poultry farms was transferred. During the “bubble” period, their activities were suspended, but they will resume this week, because the probability that Lithuania will be included in the yellow list is very high, “explained the head of the poultry business of Linas Agro Group.

The company has also started planning weekly virtual meetings with the team in Latvia, issuing credentials to sign documents, etc.

The exception for business travel would not be used

Politicians say exceptions could be made for work-in-progress issues, but this has yet to be negotiated.

Interior Minister Rita Tamašunienė says that if Latvia plans to introduce mandatory self-isolation for those coming from Lithuania, exceptions could apply to those engaged in trade affairs.

“Of course, we will look for those exceptions, as we do now with Poland. We have exceptions with Poland for labor and agricultural matters, because we have farmers on the border. They are granted an exception and they do not need to be isolated,” R. Tamašunienė told reporters Thursday.

Companies are skeptical about this.

Representatives of Linas Agro Group recalled that in the spring the same exceptions were applied to work-related activities: it was possible to enter / exit with a certificate indicating that it is not COVID-19 and with the prior permission of the commander of the border post ( both countries) for the exact date and time.

“It’s the same when driving backwards. Testing every few days and obtaining those permits is a time-consuming procedure. It is worth once or twice, but not every week, “noted A. Pranckevičius.

Company executives expect the cartel to end in the European Union (EU) in the fall.

“The incidence rate, which excludes countries affected by COVID-19, fell to 16 per 100,000 inhabitants in July, when the incidence was lowest. However, the pandemic will only intensify after the summer, so such Maybe the EU decision will turn 16 into 25, or maybe even 36. In that case, Latvians will have to reverse their decision, ”believes A. Pranckevičius.

70 business trips per month

Employees of the clothing chain Apranga Group also used to take business trips to Latvia.

“Typically, on average, there are about 70 business trips to Latvia per month”, 15 minutes reported Tadas Marčiukaitis, Apranga Group’s corporate communications project manager.

According to internal calculations, the Apranga Group, which has opened 51 stores in Latvia, is the market leader. All the stores of different brands managed by the group operate in Riga.

The company had temporarily suspended all missions during the quarantine, after which missions were resumed complying with all security requirements and assessing their need.

Therefore, if Latvia includes Lithuania in the list of countries from which it is necessary to isolate itself, the Apranga Group would switch back to teleworking with its Latvian colleagues.

“If such a solution exists, we will work remotely, such as during the quarantine in March and May. The implementation of daily functions in Latvia and Estonia is ensured by the local administration, so there will be no additional difficulties,” says T. Marčiukaitis .

According to him, the experience gained during the quarantine and the solutions implemented ensure that the head office will perform all other necessary functions remotely: purchasing, marketing, personnel and sales.

The Lemon Gym sports club network, which manages 6 sports clubs in Latvia, also intends to switch to remote communication with units in Latvia. Network Manager Greta Radzevičienė 15 minutes He said that Lithuanian employees travel to Latvia about once a week, depending on the situation, because business trips are related to the direct activities of sports clubs.

“During the quarantine, we learned to communicate remotely, but of course arrival is still necessary, but even now we try to drive responsibly and only when there is a great need. If self-isolation is introduced, it is likely that we will not go to Latvia and continue the work remotely, ”said G. Radzevičienė.

All meetings with Latvians will be organized remotely by the foreign capital company IKEA in Lithuania.

Renata Dante, Director of Corporate Communications, IKEA Baltics 15 minutes He said that when the Latvian government plans to decide that a quarantine period will be necessary for arriving Lithuanians, business trips of IKEA Lithuania employees to this country were canceled. They will not apply while such restrictions are in effect.

“Currently, all meetings and live events are transferred to virtual conference calls, communication takes place using various communication platforms and devices,” said R. Dante.

Due to the company’s decision to limit business travel between countries during the pandemic, comparing its number in 2019 in May with the same period this year, it fell 20 times.

The missions were not renewed anyway.

Meanwhile, Maxima Group, which operates 175 stores in Latvia, ensures business trips from quarantine without renovating them.

“Since the beginning of the quarantine, we have introduced a rule in our company not to organize business trips to foreign countries and to receive guests on a limited basis. We continue to follow this practice, so we do not plan business trips to Latvia. We have implemented a system of meetings and remote calls, so in this way we continue to successfully organize work or meetings with colleagues. We will abandon real business trips until the situation in the country and in the world improves “, 15 minutes said Giedrė Rutkauskaitė, a representative from Maxima Group.

The same said Lena Sokolovska, general manager of Lithuanian cosmetics Uoga Uoga: currently the company has suspended business trips to any country, but does not feel much need for business trips to Latvia, as it sells through an electronic store.

It is true that the director of this company will be personally affected by the Latvian decision.

“I myself am Latvian. My parents live in Daugavpils, which is a big problem for me personally, of course, because after visiting my parents I will have to work from home,” said J. Sokolovska.