The Latvian Competition Council (KP) has launched an investigation into "Latvijas Valsts meži" (LVM) regarding its long-term forestry contracts. These contracts were established in the 1990s and grant exclusive rights to certain private companies for harvesting timber, offering them a competitive advantage in acquiring forest stands. This inquiry comes as the National Audit Office and the prosecutor's office assess the legality of government support given to various forestry companies several years ago, raising concerns about fair competition in the industry.

The KP's probe into LVM's contracts has surfaced in the context of a broader scandal related to support for the forestry sector. If the investigation finds LVM guilty of misconduct, it could face significant financial penalties, possibly amounting to millions of euros. The exclusive nature of the contracts has drawn criticism, as they create a