Latvian tax authorities have lifted operating restrictions on SIA “Latprodukti”, the local operator of the “Mere” discount supermarket chain, following a sharp drop in the company’s tax debts, according to an official letter from the Tax Compliance Promotion Board. The State Revenue Service (VID) removed all bans related to altering the company’s share capital, commercial pledges, and registering changes with the Enterprise Register after the business settled hundreds of thousands of euros in outstanding arrears.
VID Lifts Corporate Restrictions After Tax Debt Settlement
The State Revenue Service issued an official letter reversing the administrative hurdles that previously brought SIA “Latprodukti” to the brink of shutdown. The cleared restrictions allow the enterprise to resume standard legal operations within the Latvian Enterprise Register. This includes changing company officials, registering corporate restructuring, and modifying commercial pledges.
The turnaround follows a massive reduction in liabilities. VID data shows that the company no longer carries significant tax debts exceeding the 150-euro threshold. Weeks earlier, state budget records indicated that SIA “Latprodukti” owed more than 257 tūkstošus eiro, a sum the company has since cleared.
EU Sanctions Target Russian Beneficiary Sergei Schneider
The initial freeze on “Mere” operations stemmed directly from European Union sanctions imposed on the discount chain’s ultimate beneficial owner, Russian businessman Sergei Schneider. The EU blacklisted Schneider for providing material and financial support to actions undermining Ukraine’s sovereignty and territorial integrity.
Schneider’s family controls an international discount retail empire spanning more than diviem tūkstošiem stores under the “Svetofor”, “Mere”, and “MyPrice” banners. Because of Schneider’s direct tie to the Latvian entity, “Mere” stores in Latvia faced immediate operational freezes before the recent debt clearance and administrative unfreezing by VID.
Financial Performance of the 12-Store Latvian Network
SIA “Latprodukti” incorporated in Latvia in 2020 with a share capital of 365 tūkstošu eiro. While a company registered in Serbia holds the legal equity, Schneider retains ultimate control as the beneficial owner. In its previous reporting year, the operator generated 31,57 miljonu eiro in turnover—a year-on-year increase of more than fifty percent—though the business still recorded roughly 71 tūkstoša eiro in annual losses.
The discount chain operated 12 physical locations across Latvia, including stores in Riga, Daugavpils, Liepaja, Jelgava, Ventspils, Rezekne, Jekabpils, Tukums, and Valka.
Baltic Operations Face Broader Ownership Shifts
Similar corporate maneuvering accompanied the discount chain in neighboring Lithuania, where Schneider held an indirect stake in the Lithuanian operator “Valiente” through a local branch. Lithuanian operating entities shifted ownership toward a Spanish-registered company in an apparent effort to evade international restrictions targeting the original founders.
Tax debt clearance and ownership details of SIA Latprodukti
- Why did the State Revenue Service lift restrictions on SIA “Latprodukti”? VID removed the administrative blocks after the company cleared a tax debt that previously exceeded 257 tūkstošus eiro, bringing its arrears below the 150-euro threshold.
- Who owns the “Mere” brand operator in Latvia? SIA “Latprodukti” is legally held by a Serbian-registered company, with Russian businessman Sergei Schneider listed as the ultimate beneficial owner.
- How many “Mere” stores operated in Latvia? The discount network managed 12 retail locations across cities including Riga, Daugavpils, Liepaja, and Jelgava.
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