AGP Executive Report

EU Defence Financing: Latvia has signed a nearly €3.5 billion loan under the EU’s SAFE programme, aimed at speeding up drones, counter-drone tech, guided missiles, and expanding domestic defence industry capacity, with a limited support track for Ukraine through 2028. Local Security & Conscription Watch: Russian police in Penza warned against “fake reports” about mass detentions and forced conscription, as online claims of round-ups continue to circulate. Culture in Riga: The Gaudeamus Baltic Student Song and Dance Festival drew thousands of students to Riga for parades celebrating Baltic youth traditions. Film & Industry: RIGA IFF FORUM opened submissions for its 2026 Showcase and Short Test Screenings, inviting Baltic and guest-country Finland projects ahead of the October event. Weather for Līgo and Jāņi: Latvia is set for warm, sometimes stormy summer-solstice conditions, with fog possible overnight and local thunderstorms and showers likely around the celebrations. Sports: Latvia will host Israel’s national basketball team qualifiers against Germany and Croatia as the team prepares for the next World Cup qualifying stage. Arts & Animation: Dandelooo Cinéma acquired sales rights for “Pikkuli and Starlight Reindeer,” targeting releases in Finland and France.

EU Defence Financing: Latvia has signed a nearly €3.5 billion loan under the EU’s SAFE programme, with funds aimed at drones, guided missiles, anti-drone tech and expanding Latvia’s defence industry, while also supporting procurement speed and deterrence on the eastern flank. Security Context: The deal comes as Riga responds to drone incursions linked to Russian electronic warfare, including plans for interceptor drone units along the eastern border. Crypto Regulation: Latvijas Banka has issued a licence to SIA AlphaRoute to provide crypto-asset services across the EU under MiCA rules. Public Safety: Police in Latvia are stepping up road checks around Midsummer, focusing on drunk driving. Weather Watch: The summer solstice brings hot conditions in Latvia, with thunderstorms and hail possible, including in Rīga. Local Life: Latvia’s midsummer holiday traffic and patrols are paired with extra public transport in Rīga for the night celebrations.

Weather Watch: Latvia’s longest day, June 21, brings hot conditions with temperatures around +25 to +29°C, including in Rīga up to +27 to +29°C, plus afternoon thunderstorms that may be intense with hail and gusts up to 20 m/s. Road Safety: Police will step up checks on roads until June 28, focusing on drunk driving during the holiday period, with the first cases already detected. Defense & EU Funding: Latvia has signed a nearly €3.5bn SAFE defense loan to speed up drones, guided missiles, anti-drone systems, and defense-industry expansion, with repayment required as a preferential loan. Crypto Regulation: Latvijas Banka issued a licence to SIA AlphaRoute to provide crypto-asset services under the EU’s MiCA framework. Business & Energy Storage: REPT BATTERO announced it will strengthen its Inter Milan partnership and showcase new energy-storage innovations at Intersolar Europe 2026 in Munich.

EU Defence SAFE Loan: Latvia has signed a nearly €3.5bn defence loan under the EU’s SAFE programme, with funds aimed at drones, guided missiles, anti-drone systems and expanding Latvia’s defence industry, as Riga pushes faster procurement and stronger deterrence on the eastern flank. Central Banking & Crypto Regulation: Latvijas Banka has issued a licence to SIA AlphaRoute to provide crypto-asset services across the EU under MiCA rules, including custody, trading platforms, exchanges and transfer services. EU Politics & Russia: EU leaders are split after European Council President Antonio Costa’s Kremlin outreach, with Baltic and Nordic states among those most disturbed, while Costa argues the bloc still needs direct communication channels. Local Economy & Jobs: Latvia’s “Latvia First” (LPV) party is gaining attention in polls, pitching “Latvia first” reforms and stronger sovereignty while keeping close ties with NATO and the EU. Court Watch: Latvia’s neighbours’ wolf-hunting rules are under scrutiny after Estonia’s Supreme Court ruled a 2020 wolf quota illegal over how the Bern Convention was handled. Travel Alert: Heathrow warns travellers heading to Schengen countries about extra queues this summer due to the Entry/Exit System (EES). Sports: Latvia’s volleyball fans can watch Latvia vs Greece live, while futsal coverage highlights the 5th Nagaland Futsal Club Championship final in Riga.

EU-Russia Diplomacy Rift: EU Council President Antonio Costa defended Kremlin contacts, but Nordic and Baltic leaders (including Latvia) were “most disturbed,” exposing deep splits over whether and how to talk to Moscow while Ukraine’s war grinds on. Ukraine-Belarus Pressure: Zelenskyy issued an ultimatum to Lukashenko over military equipment firing at Ukrainians near the border, warning Belarus to shut it down within a week. Latvia Security & Drones: Latvia’s defense minister says the country will intercept all drones entering its territory, as NATO and Baltic defense planning keeps intensifying. Baltic Energy Infrastructure: The Gulf of Riga wind farm transmission corridor has been revealed, and Estonia outlined a grid connection plan for the offshore project with public consultation until late July. Riga Culture & Film: Filming is underway in Riga on the Belgian/Latvian/Dutch “Strokes of Madness,” a teen psychological drama set for a 2027 premiere. Local Politics Watch: “Latvia First” (LPV) is rising in polls ahead of the next Saeima, pitching “Latvia first” reforms and stronger sovereignty. Public Media/ICT Governance: Latvia’s ICT procurement moratorium and plans to overhaul state IT governance are sparking debate, alongside controversy over LSM rebranding.

Ukraine Support: Latvia is among nine countries pledging over $1 billion under the U.S.-backed PURL initiative to buy American weapons for Ukraine, with Latvia, Lithuania, Luxembourg, Iceland and Australia named among the contributors after Ramstein talks. EU-Russia Diplomacy: EU Council President Antonio Costa defended “brief” contacts with Moscow to keep a direct channel open, but Latvia’s PM Andris Kulbergs said there’s no point in diplomatic channels if Russia won’t engage. Defense Cooperation in Latvia: During BALTOPS 2026, U.S. Seabees and divers built a more permanent boat ramp near Camp Turtle, improving Latvian access to Karosta harbor for training and operations. Energy & Infrastructure: Latvia’s solar output hit a record in May, generating 43% of electricity (235 GWh), while a Gulf of Riga offshore wind transmission corridor and Estonia’s grid connection plan move into public consultation. Courts & Media: Latvia’s Supreme Court ordered a retrial in the “digital television” case involving Ainārs Šlesers and Andris Šķēle after overturning an acquittal. Local Life: Riga’s Old Town hosts the traditional Herb Market for Midsummer, with 260+ vendors running through the evening.

EU Budget Fight: EU leaders in Brussels kick off hard bargaining over the bloc’s €2 trillion long-term budget (2028–2034), with “frugal” net payers led by Germany and the Netherlands pushing sharp cuts that would shrink agriculture and cohesion from ~60% to 44%, while Latvia and other “Friends of Cohesion” argue the funding must not be sacrificed. Ukraine Support at NATO: NATO chief Mark Rutte calls it a “window of opportunity” as allies back Ukraine with new air-defense, drones and long-range ammunition pledges, including via the PURL mechanism. Latvia Energy Costs: Conexus Baltic Grid plans higher natural gas transmission tariffs from 1 October, with a gradual shift toward a capacity-based model. Security & Disinformation: The European Parliament condemns Russian drone incursions as a deliberate threat to EU security and urges more support for Moldova’s air defense. Latvia in the Spotlight: Latvia-based fact-checkers say hosting GlobalFact in the Baltics is a milestone for resisting Russian influence. Weather: Latvia heads into Midsummer with temperatures up to around +27°C, but Jāņi night could bring surprises.

NATO & Ukraine: NATO chief Mark Rutte said the Ukraine Defense Contact Group meeting was driven by a “window of opportunity,” with Latvia among countries pledging hundreds of millions for the PURL program to buy critical U.S.-made equipment. EU diplomacy: Several EU leaders warned against rushing into talks with Russia unless Moscow shows real willingness to negotiate, while the EU also moves to reopen a direct communication channel to avoid being sidelined in any future peace process. EU security stance: The European Parliament condemned Russian drone incursions into the EU and backed more support for Moldova amid repeated airspace violations. Latvia in the spotlight: Latvia’s PM Andris Kulbergs said the EU should appoint a special representative for peace talks if they happen, arguing diplomatic channels must exist. Local governance & accountability: Latvia’s Prosecutor General’s Office found no unlawful spending tied to VIP lounge payments used by former PM Evika Siliņa during official trips. Public safety: Latvian State Police are searching for missing 2014-born Pavel Jaskovičs, last seen in Skrīveri and possibly in Riga. Economy & business: JSC Olpha plans to expand exports of pharmaceutical research and drug development services by creating Olpha Labs Ltd.

Air Safety & Security: Latvia’s airspace saw 510 GPS disruption incidents in the first five months of 2026, with May alone accounting for 131 cases—an ongoing problem linked to the war in Ukraine, though aviation authorities stress GPS interference doesn’t threaten flight safety. Defense & NATO: Latvia’s PM Andris Kulbergs urged NATO to plug Ukraine’s drone-warfare know-how directly into Alliance planning, while NATO chief Mark Rutte pushed for more forces, resources and industrial capacity as Europe steps up. Energy Storage: Futureal Energy Partners (Futureal Group) is entering the Baltic market by buying a 45 MW/120 MWh battery portfolio in Latvia, with construction due to start in July and operations targeted for November. Housing Costs: ECB data show Latvia has the highest eurozone mortgage rate at 4.18%, far above Malta’s 2.08%, widening the monthly-payment gap across Europe. Public Media: Over 200 employees at Latvian Public Media oppose a planned rebrand into a single “LSM” brand, warning that the long-standing “Latvijas Televīzija” and “Latvijas Radio” identities are being erased. Culture & Weather: Peony season is in full swing in Lielvārde, and forecasts point to warm, mostly summery Midsummer Eve and Jāņi Day weather with a higher chance of rain later.

NATO-Ukraine Drone Push: Latvian PM Andris Kulbergs urged NATO to plug Ukraine’s battlefield drone know-how straight into Alliance planning, saying drones evolve weekly and Latvia’s new defense cooperation deal is meant to transfer operational experience fast. Counter-Drone Boost for Ukraine: The Netherlands pledged €500m for Ukraine—half for drones and air defence bought from Dutch firms, half via the PURL programme—while Latvia will add €7m to PURL. Regional Security: Denmark will send an 850-troop battalion to Latvia this autumn, replacing Sweden. Latvia Economy Watch: Eurostat data put Latvia’s May inflation at 3.5% (above EU and euro area averages). Energy Investment: The EIB invested €20m in Latvenergo green bonds supporting hydropower refurbishment and other renewables. Riga Rail Tech: Rail Baltica and RTU opened BIM for Rail Bootcamp 2026 in Riga, bringing 100+ rail and digital experts together. Public Safety: Rescue services urged safer Midsummer water recreation, warning alcohol and lack of life jackets are major risks.

Corruption Watch (KNAB): KNAB chief Jēkabs Straume says there’s no sign the bureau leaked information in the timber industry case, arguing that media learns about procedural steps from its own sources. Economy (Bank of Latvia): Latvia’s central bank cut its 2026 GDP growth forecast to 2% (from 2.8%) and also lowered 2027 to 2.4%, citing weaker external demand and more cautious consumers and investors. Defense & Industry (Counter-drone): Alpine Eagle and Latvian firm Origin Robotics signed an MoU to integrate Origin’s BLAZE interceptor with Alpine Eagle’s Sentinel architecture, aiming for a layered sensor-to-effector counter-drone system. EU Policy (Russia travel ban push): Latvia urged EU states to keep Russian representatives out of arts and sports and block them from “tourist vacations” in the bloc. Health (Measles alert): Latvia is among EU countries reporting measles cases, with travel authorities warning holidaymakers to check immunisation before summer trips. Culture (RIGA IFF Forum): Submissions opened for 2026 RIGA IFF SHOWCASE and SHORT RIGA test screenings, inviting Baltic and Finland projects.

Economy Watch: Latvia’s central bank cut its GDP growth forecast for 2026 to 2.0% (from 2.8%), with 2027 lowered to 2.4% and 2028 to 3.0%, citing weaker external demand and higher uncertainty, while pointing to military and dual-use investment as a stabiliser. Defense & Tech: Latvian firm Origin Robotics and Alpine Eagle signed a memo to link detection and interception into an integrated counter-drone system, pairing Origin’s BLAZE interceptor with Alpine Eagle’s Sentinel architecture. Security Policy: Latvia’s Foreign Ministry urged EU countries not to host Russian representatives in arts or sports and to keep pressure via sanctions, arguing Russia should be isolated. Public Health: A measles surge across Europe has prompted travel warnings; Latvia is among the EU countries with notable case counts, and officials urge travellers to be fully vaccinated. Regional Infrastructure: Transport Minister Rihards Kozlovskis said Rail Baltica completion depends on EU funding and stressed the need for Baltic unity, with any 2030 timeline still subject to an international cost and schedule assessment. EU Human Rights: The UN warned that at least 58 states and territories remain contaminated by anti-personnel mines, with civilians making up about 90% of recorded casualties in 2024.

Air Defence & Security: Latvia’s new Defense Minister Raivis Melnis says the country will intercept all drones entering its airspace, while also backing Ukraine’s right to strike targets in Russia. Rīga Hospital Strain: Long ambulance queues outside Stradiņš Hospital have again delayed emergency care, with officials pointing to a mix of circumstances and noting the growing share of patients arriving on their own. Civil Defence Readiness: Major Rīga hospitals say they lack traditional underground shelters, but they have crisis plans and “safe rooms” to keep patients and staff protected during air threats. Drone Debris Probe: The National Armed Forces is still analysing fragments found in Latgale that may be linked to a drone incident shot down earlier this month. EU Defence Planning: Latvia will push the EU to speed up Eastern Flank defence projects, including drone and counter-drone work, at the upcoming European Council meeting. Transport & Business: airBaltic and EL AL signed a codeshare deal from 1 July to expand Riga–Tel Aviv connections and add more one-stop routes via Riga. Trade & Daily Life: From July 1, Latvia will apply a new €3 import duty per goods category on cheap online purchases shipped directly from outside the EU. Weather: Tuesday–Wednesday brings cloudy skies, rain and possible thunderstorms, with fog in places, before more stable conditions later in the week.

EU Accession: The EU and Ukraine formally opened the first stage of accession talks after Hungary’s delay, with leaders framing it as a historic step despite continued political friction. Latvia & NATO Eastern Flank: Latvia will push the EU Council to speed up defence projects for the eastern flank, including drone and counter-drone work and border surveillance. Riga Healthcare Pressure: Stradiņš Hospital warns Riga is short on emergency-capable beds, with ambulances lining up when capacity is stretched. Security & Airspace: NBS says fragments from a drone incident in eastern Latvia are still being analysed; the public is urged not to touch suspected debris. Business & Economy: Rietumu Banka became a Premium Partner of AmCham; FitRadar secured Microsoft support worth $150,000 in Azure credits; and Virši is expanding by rebranding Naftimpeks stations. Shadow Economy: SSE Riga reports Latvia’s shadow economy edged up to 21.8% of GDP in 2025. Transport: Air Baltic will resume Riga–Tel Aviv flights from 1 July via a codeshare with El Al.

Healthcare Capacity in Riga: Stradiņš Hospital warns Rīga is short of either another emergency-care hospital or a mid-level facility, after ambulance queues grew when beds ran out; board member Dace Žentiņa says the fix needs system-wide action involving both university hospitals, the Health Ministry, Riga Municipality and the NMPD. Property Rights Dispute: In Daugavpils, unclear ownership of the “Lada Auto” garage cooperative has dragged on for decades, with garages tied up by land registry and power-line constraints sparking lawsuits and conflict. Consumer Lending Reform: Latvia’s quick-loan supervision overhaul is moving slowly, with lawmakers debating whether regulation should shift from the Consumer Rights Protection Centre to the Bank of Latvia. District Heating Control: Rīgas siltums should have a single controlling owner, Riga City Council chair Viesturs Kleinbergs says, arguing Riga should be the better shareholder. Business & Prices: airBaltic expects jet fuel prices to stabilise after a U.S.-Iran agreement and says it sought a €30m loan during the spike. Public Life: Rīga Pride drew about 4,000 people and passed peacefully despite usual protesters. Weather: Rain and thunderstorms are expected, with a warmer, sunnier turn from Thursday. Sports: Latvia’s volleyball teams played Slovenia and Portugal in the CEV European League, with full match replays available.

Language Law Push: Latvia is set to ban the use of foreign languages in stores, car dealerships and similar places, with a bill debate turning on whether sellers must start in an EU official language before switching at a buyer’s request, while written info like menus would stay official-language only. Parliament Costs: Latvian Saeima deputies’ expense compensation has topped €1 million over the past term, with most money tied to housing rentals and hundreds of thousands to transport. Soviet Deportations Remembered: Latvia marked the 85th anniversary of the 1941 mass deportations, when tens of thousands were sent to Siberia, with President Edgars Rinkēvič stressing the lasting damage across generations. EU Migration Pact: The EU Migration and Asylum Pact took effect, shifting focus toward border control, return procedures and possible “return hubs,” while Latvia has also adopted a new law to strengthen border control. Riga/Latvia in Justice Talks: A UK-Latvia deal aims to speed up prisoner transfers, tied to a long-running extradition fight in the Keaton Slater hit-and-run case. Baltic Sports Spotlight: Latvia’s World Cup of Darts run continues in Frankfurt, including a notable group-stage upset involving Latvia’s pairing.