It used to be better: Rebir plant will be closed in Latvia due to anti-Russian sanctions

The liquidation of one of the most famous industrial enterprises for the production of power tools in Rezekne, Rebir, has begun in Latvia. It is reported that the decision was made due to EU sanctions against Russia and Belarus. Read more about the incident in the "Izvestia" article.

Liquidation of Rebir

The Rebir company is being liquidated in the Latvian city of Rezekne, "Sputnik Latvia" agency reported. As explained by the largest shareholder Nikolay Simorev, the decision was made in connection with the European sanctions imposed against Russia and Belarus, which were the main sales markets of the company.

"We were looking for alternative export routes through Turkey and Kazakhstan, but we failed. Yes, we have been looking west for a long time, but these are very large working capital, and unfortunately we could not afford it," he said.

According to the LSM agency, the liquidation of the company began in the summer. According to the Latvian media, the decision on liquidation was made after a repeated extraordinary meeting. The company's liquidation process is expected to be completed by the end of this year.

The official representative of the Russian Foreign Ministry, Maria Zakharova, has already responded to the incident. In an interview with RIA Novosti, she said: "Everyone who chose "European values" became a servant of the European Union, losing their industry, agriculture, education and sovereignty."

There weren't enough supplies

It is important to note that Rebir operated without tax arrears, however, the turnover decreased rapidly every year. The company itself continued to operate at a profit (in 2025, Rebir's turnover was about €300.6 thousand, and its profit was €80.6 thousand) even at the time of the decision to liquidate it. Nevertheless, the shareholders came to the conclusion that there were practically no prospects for further business development.

"The company has accumulated large reserves. By slowly selling off these stocks, it was possible to receive some money for survival, but not for further development and successful continuation of economic activity," said Janis Spilve, Rebir liquidator and sworn lawyer.

In general, since the beginning of the special operation in Ukraine, five enterprises have been excluded from the Rezekne special economic zone, but Rebir is the only one so far due to sanctions. In the near future, the property, equipment, and remnants of the company's goods will be put up for auction.

The reorientation of the markets did not save

Historically, a significant part of Rebir's products were sold in Russia, Belarus and other post-Soviet countries. After the outbreak of the conflict in Ukraine and the imposition of European sanctions, the company was faced with the inability to continue its previous export model. Certain categories of the company's products were subject to sanctions restrictions, which made it impossible to supply them to the Russian market.

Rebir is known to have tried to maintain exports through alternative routes through Turkey and Kazakhstan. However, it was still not possible to arrange deliveries in this way. The management also considered the development of Western markets, but the company did not have the working capital necessary for this.

What is known about Rebir

The Rezekne company was founded almost 60 years ago, in the 1970s, and was one of the largest specialized enterprises for the development and production of power tools in the former USSR. It all started with the sale of rakes, hand-held construction tools and various metal products. Rebir later became known as a manufacturer of power tools and equipment. The range was extensive and included: circular saws, jigsaws, electric chain saws, planes, milling machines, submersible pumps and much more.

In recent years, Rebir's power tools have been manufactured in China. In Rezekne, however, there was a small warehouse and a shop where a little more than 10 people worked.