Russian singers Iosif Kobzon, Oleg Gazmanov and Valeria will not be able to go to Latvia, as they declared for the annexation of the Crimea. Latvian officials announced representatives of show business as persona non grata. Property sellers think that this "stupid" and "short-sighted" step will be a serious blow to the housing market, especially if Russia would respond equally. Portal ee24.com looked into this difficult situation.
Foreign Minister Edgars Rinkēvičs said to First Baltic channel that the banned people "can hardly be called ordinary performers", since they launched "dynamic political activity." Rinkēvičs noted that in the EU and in particular in Latvia there can be cultural events, but they cannot be used to promote policies that "are unacceptable for us now." The minister did not specify what exact propaganda actions were taken by Kobzon, Gazmanov and Valeria on the territory of Latvia, most likely it was due to the absence of such examples.
A new wave of sanctions surged unexpectedly, the day before the contest "New Wave". If we can not come to them, then why not invite them to us - the Russians not only thought but also offered to the music contest organizers to leave Latvia and move to them. Krasnodar region Governor Alexander Tkachev recommends Sochi in his "Twitter", head of Kaliningrad region Nikolai Tsukanov advocates the resort town of Svetlogorsk that is located at the Baltic Sea, as well as Jurmala; the CPRF is for the Crimea, that is to blame for these sanctions, and even the mayor of the Estonian town of Mustvee Max Kaur also does not mind biting off a piece of the pie.
Judging by comments to articles and the latest news, there are less and less people who want to buy property in Latvia and who are attracted by this country. Although deputies of the Saeima did their best, having raised the cost of housing, which will provide the right to obtain a residence permit. The price changed from €142,300 up to €250,000. And they even ask foreign buyers to pay 5% of the transaction amount to the budget, apparently, this sum will be used to buy paper to print these anti-Russian sanctions.
Latvian realtors believe that the Foreign Ministry’s position is shortsighted, and first of all, at least strange. Karlen Kalashyan, CEO of Property Selection (Latvia), commented this situation: "Often politics is at odds with business. And ban for the Russian singers’ entry before the most important and the main event of Jurmala is quite a controversial decision. But it has already been done. If "New Wave" moves from Latvia to Russia or Estonia, it will damage the real estate market of Jurmala. But even with this extremely pessimistic option the market will not collapse. "New Wave", "Club of the Merry and Inventive" and "Comedy Club" are important components of summer season, but buyers are more attracted by the resort itself, rather than events associated with it. Therefore, in our company we are confident, that even such short-sighted foreign policy can not affect the property market."
Andrejs Kozels, director of residential property department of Realia (Latvia), is also inclined to consider the sudden sanctions as the foreign minister’s attempt to assert himself. According to him, the news about the ban of the Russian singers became one of the top news in Latvia, but such actions will not result in "rejection" from the real estate market. "Edgars Rinkēvičs, who, I think, will stay at his position only for a while, decided to arrange a "moment of glory" for himself. That's a stupid step and PR campaign that will not affect healthy minds. If Russia does not take retaliatory steps, I think that it will not affect demand".
Text: Alexander Fetyukov, ee24.com