CEO of Latvian Railways Ugis Magonis is under arrest in Latvia under corruption charges which are linked to Skinest, owned by Estonia's richest person Oleg Ossinovski.
The case is connected to four used trains sold by Skinest Estonia to Latvia.
“I am aware that the Latvian prosecution has launched an investigation, but I would like to stress that the procurement was completed by following all the rules,” Ossinovski said.
Ossinovski explained that Latvia received four powerful trains and in return, Skinest was able to open a train repair plant in Daugavpils, a city in southeast Latvia, creating 800 jobs.
Latvian prosecution is accusing Magonis of taking a 500,000-euro bribe for agreeing to the deal.
According to Äripäev, Ossinovski's offices in Tallinn have been searched by Estonian authorities, on the request of Latvian prosecutors.
Ossinovski is the father of Jevgeni Ossinovski, the head of the Social Democrat party. The father is also the party's biggest financial backer.
Editor: J.M. Laats