AGP Executive Report

Baltic Security: NATO held “Baltic Zenith 2026” air-defense drills at the Yurmalciems range in Latvia, with units from Latvia, Lithuania, Estonia, Canada and Sweden running live-fire exercises day and night to boost allied interoperability. EU Border Policy: Eleven EU countries, including Latvia and Estonia, urged the European Commission to tighten Schengen visa rules for Russian citizens, arguing current issuance lets Russians keep visiting resorts despite the war in Ukraine; the Commission says “targeted restrictive measures” are planned for next year. Aviation Climate Rules: The European Commission launched infringement steps against 13 EU states, including Latvia, for missing deadlines to set penalties under the ReFuelEU Aviation fuel rules meant to speed up sustainable aviation fuels. Energy Storage Focus: Baltic energy experts warned that solar-driven price drops can hurt project payback unless the region scales up battery storage (BESS) and attracts major electricity-hungry demand like data centers. EBRD in Riga: The UAE took part in the EBRD Board of Governors meeting in Riga, while Latvia’s foreign minister stressed NATO should prioritize deterrence with deployable forces, resilient supply chains and tech. Sports: Trinidad and Tobago’s darts team was drawn in Group J against Latvia and Italy for the 2026 World Cup of Darts.

Latvia Politics: Latvia’s pre-election campaign period for the 15th Saeima elections begins today, with KNAB warning parties to follow strict rules and clearly label paid political ads to avoid hidden campaigning. EU Security & Travel: The European Commission says it will propose targeted Schengen visa restrictions for Russian citizens next year, responding to pressure from several member states including Latvia amid security concerns. Defense Focus: Latvia’s foreign minister urges NATO to keep collective defense and deterrence at the center, stressing deployable forces, resilient supply chains, and investments in air defense and drones. Energy & Industry: At the EBRD annual meeting in Riga, officials discussed regional energy balance and the need for battery storage; separately, Sunly and Rolls-Royce signed a deal for four large battery energy storage systems in Latvia. Local Economy & Finance: Ameriabank and FMO signed a EUR 120m loan agreement to expand green and inclusive financing for Armenian MSMEs during the EBRD gathering. Sports: Latvia men beat New Zealand in the FIBA 3x3 World Cup play-in, setting up quarter-final action.

Energy Deal: Sunly and Rolls-Royce Power Systems signed an agreement for four large battery energy storage systems in Latvia, totaling 490 MWh (with a possible 790 MWh expansion), with first operations in Valmiera expected in early 2027. EU Visa Pressure: Latvia and other Schengen states are pushing the EU to tighten Russian tourist visas, arguing Russians are still traveling while Ukraine is under attack; the Commission is set to propose stricter measures in January. Sports—FIBA 3x3: Latvia (men) beat New Zealand 21-19 and set up quarter-finals, while Azerbaijan (women) edged Lithuania in overtime; Latvia’s 3x3 campaign keeps momentum. Armenia Support: EU leaders say more than €50m in emergency aid is being prepared for Armenia after Russia’s export restrictions, including shipments of flowers linked to Latvia. Local/Business: Pay transparency rules are rolling out across the EU, but many countries—including Latvia—are still at draft or late stages.

Energy & Industry: Rolls-Royce Power Systems has signed contracts with Sunly for 490 MWh of battery storage across four Latvia projects, with the first hybrid park in Valmiera due in Q1 2027, and the deal tied to strict EU cybersecurity rules. Finance & Climate: The EBRD approved a €26m loan to Next Biogas to buy and convert a plant in Lēdurga into a major biomethane facility, turning agricultural and food waste into renewable gas for Latvia and export markets. Security & Defence: Latvia and Ukraine are drafting a long-term defence cooperation deal focused on drone tech, air defence, cybersecurity, and defence-industry integration, including shared operational experience and training. EU Politics: The European Commission is preparing tougher visa rules for Russians in January after complaints from Schengen states, as 11 countries push for binding, more uniform restrictions. Public Safety: Border guards in Augšdaugava detained a French citizen for illegal transport of 14 people across the Belarus–Latvia border; the group was returned to their origin country. Business/Markets: Latvia’s Bank of Latvia has approved LAU Infra Group’s IPO prospectus; subscriptions start June 10 with shares priced at €1.57. International: A 17-nation framework called GUIDE was launched to improve protection of undersea telecom and energy cables, including Latvia.

Armenia–Latvia Trade: The first shipment of 5,500 roses from Armenia has arrived in Latvia, with EU officials saying it’s part of wider support for Armenian exports as Russia tightens restrictions. EU Support for Armenia: EU Commission President Ursula von der Leyen says a €50m+ package is being prepared to counter Russia’s economic pressure, including practical help for agri-food trade; more flower deliveries are planned. Latvia’s Public Finance: Latvia raised €1bn via a seven-year sustainable government bond sale, aimed at climate neutrality and a more inclusive economy. EBRD in Riga: The EBRD annual meeting and business forum is underway in Rīga, focusing on Baltic competitiveness, resilience, and support for Ukraine. Security & Airspace: Latvia’s Latgale region is adjusting to repeated drone-related air raid alerts, disrupting exams and events and raising border-safety concerns. Sports (Latvia in focus): Latvia’s men advanced in the FIBA 3x3 World Cup after wins over Czechia and Mongolia, setting up a play-in clash with New Zealand. Culture: Valga Hot Shorts returns July 3–5 on the Estonian-Latvian border, with a Latvian jury member and films from 19 countries.

Security & Airspace: Latvia’s Latgale is adjusting to repeated drone incursions and air-raid alerts that have disrupted exams and events, underlining fears of spillover from the Ukraine war. EU Foreign Policy: 11 EU countries led by Sweden are pushing for tougher Russian tourist visa rules, aiming to stop “shopping weekends” while Ukrainians fight. UN Diplomacy: Austria, Portugal, Trinidad and Tobago, Zimbabwe and Kyrgyzstan won UN Security Council seats for 2027–28, while Germany failed in a major setback. Latvia’s Economy & Markets: Latvia’s State Treasury raised €1 billion via a 7-year sustainable bond issue, with proceeds earmarked for green transport, biodiversity and social goals. Industry & Jobs: Latvia’s industrial production rose 7.0% year-on-year in April, with manufacturing and electricity/gas supply among the drivers. Energy Transition: Sunly opened a 54 MW solar park near Valmiera as part of a hybrid solar-wind-battery plan, and Latvenergo is preparing to donate decommissioned TEC-2 equipment to support Ukraine’s energy rebuild. Sports: Latvia’s darts team has been drawn against Trinidad and Tobago and Italy in the BetVictor World Cup of Darts group stage.

Defence & Security: Latvia’s new Defence Minister Raivis Melnis says drones entering Latvian airspace must be intercepted and destroyed, warning the country needs a full network of surveillance, detection and interception—not just one counter-drone purchase. Regional Drone Cooperation: Ukraine’s Zelensky announced expert teams will travel to Latvia, Lithuania, Estonia and Romania to share counter-drone experience and interceptor know-how after repeated drone incidents near the region. NATO Deterrence Talks: Poland and Lithuania confirm early discussions on their potential role in NATO nuclear deterrence plans tied to U.S. weapons in Europe, while Poland denies any plan to host nuclear arms. UN Diplomacy: The UN General Assembly elected Austria, Kyrgyzstan, Portugal, Trinidad and Tobago and Zimbabwe to the Security Council for 2027–28; Germany failed to win a seat. Economy & Travel: airBaltic reported losses exceeding €70 million in the first quarter, with management warning the 2026/2027 winter season may need €100–€150 million in extra funding. Weather: Summer warmth is moving in, with temperatures up to +26°C, but rain and thunderstorms are expected to increase toward the weekend.

Drone War in the Baltics: Ukraine hit St Petersburg with dozens of drones ahead of Putin’s flagship economic forum, disrupting mobile internet and briefly closing Pulkovo Airport; Zelensky said targets included an oil terminal and the Kronstadt naval base. Latvia’s Security Push: Latvia and Finland agreed to jointly develop a new protected military vehicle system over three years, while Latvia also reiterated its NATO-summit message ahead of Türkiye: collective defense and higher real spending. UN Diplomacy: Austria, Kyrgyzstan, Portugal, Trinidad and Tobago and Zimbabwe were elected to the UN Security Council for 2027–2028; Germany missed out, while Latvia remains a current non-permanent member. Economy Watch: EBRD cut growth forecasts for Latvia and the Baltics, citing energy shocks and weaker demand, with Rail Baltica and airBaltic risks flagged. Business & Transport: airBaltic reported losses above €70m in Q1 and may need €100–€150m extra funding for the 2026/27 winter; meanwhile, airBaltic is set to resume a Riga–Aberdeen summer route and 4RCargo was named Finnair Cargo’s GSA for Estonia, Latvia and Lithuania. Local Governance: Daugavpils’ 751st birthday festival (June 5–7) brings extra public transport and free rides on June 6–7. Justice: Immunologist Jevgēnijs Ņikiforenko was sentenced to 13 years for sexual abuse of patients and banned from practicing medicine for seven years. Health/Science: Scientists used yeast from Ötzi the Iceman to make “very, very good” sourdough and are now planning to brew beer from it.

Latvia–Russia Trade Cut: Latvian PM Andris Kulbergs says he will order a plan to end export and import of goods with Russia, while allowing EU-coordinated exceptions for sectors like pharma that can’t switch markets overnight. Security & Air Alerts: An air threat warning for Alūksne municipality was lifted after NATO jets were scrambled; authorities reminded residents how to respond to yellow vs orange alerts. Energy Transition: Līvāni opened Latvia’s first hybrid wind/solar-style project: a solar park plus battery storage, with €3.4m invested by Vindr to boost local energy security. Weather Watch: Wednesday brings warm conditions up to +27°C, with rain and possible thunderstorms in parts of Vidzeme. Ukraine War Impact: Ukraine hit a major St Petersburg oil port ahead of Putin’s economic forum, with Russian officials citing “infrastructure” damage and injuries. Sports (Latvia in focus): Latvia’s U18 women’s team is set for the FIBA EuroBasket in Stockholm (Aug 1–9), and Latvia also featured in the FIBA 3x3 Women’s World Cup as Gilas Pilipinas lost to Latvia in Pool C.

Latvia-Ukraine Energy Aid: Latvia’s PM Andris Kulbergs met Ukraine’s Deputy PM Yuliia Svyrydenko as preparations speed up for transferring equipment from Latvian CHPPs to help restore Ukrainian energy facilities, with the next heating season a key focus. Security & Diplomacy: Latvian President Edgars Rinkēvičs said Ukraine’s EU accession is in Latvia’s security interests, while also highlighting expanded defence cooperation and efforts to reduce drone threats to Latvian airspace. Government Watch: Latvia’s new coalition plans to hold cabinet meetings twice a week—Tuesdays and Fridays—plus an off-site meeting in Latgale on June 27, as the government works within a short four-month term. Regional Drone Anxiety: In Latgale, recent drone alerts are prompting questions but not mass departures, with residents continuing to buy homes while some grow more cautious. Business & Tech: Mobilly’s 2025 revenue rose 42% to €5.9m, and Tet started operating its first SC7 data centre line in Salaspils ahead of schedule. Culture: Serbian Ambassador Milena Mitic presented her credentials in Riga, and Latvia’s Cannes-linked film “Ulya” continues to draw attention ahead of its broader release.

Cybercrime Crackdown: Latvian Deniss Zolotarjovs was sentenced in the US to 102 months for helping negotiate major ransomware attacks tied to Karakurt/TommyLeaks/SchoolBoys, including theft of sensitive personal data and disruption of services like a 911 system. Baltic Security & Drones: Latvia will send for Ukrainian drone-warfare specialists to advise on layered counter-drone defence after recent airspace incidents, as EU states debate a more coordinated response to the growing drone threat. Local Transport: Riga’s Tram Line 7 has been extended and a new “Ķengarags” mobility hub opened, aiming to make transfers easier. Energy & Defence Tech: Latvia and Ukraine plan to deepen cooperation on drone technologies and energy security, including a bilateral drone agreement and a Latvian donation to support Ukraine’s power infrastructure. Weather: Summer-like warmth returns, with temperatures climbing up to +26°C later this week. Sports (Latvia in focus): Norway beat Latvia 2-0 at the ice hockey worlds, with Red Wings prospect Michael Brandsegg-Nygard recording an assist. Business/Work: Latvia’s average gross monthly wage hit €1,831 in Q1, with wage growth slowing to 4.2% year-on-year.

Drone Defence Push: Latvia’s PM Andris Kulbergs says Ukrainian drone warfare specialists will advise Latvia soon, aiming for a long-term, layered air-defence plan after past drone airspace scares. Tourism Fallout: Latvia’s Restaurant Association warns that confusing, alarm-heavy messaging about drone threats is already driving booking cancellations and costing millions, urging clearer, coordinated government communication. Mount McKinley Tragedy: A Latvian mountaineering team reports three climbers died after a fall near Denali Pass on Alaska’s Mount McKinley; one climber was rescued and airlifted to hospital. airBaltic Watch: airBaltic’s new business plan is nearly finished at management level and now under supervisory board review, with approval potentially this week. Local Life: Authorities escorted a bear out of Jēkabpils using a closed road corridor and drones with infrared cameras, with no injuries reported. Economy & Work: Latvia’s unemployment rate hit 6.5% in April, while Eurostat data also show Latvia’s average working hours and wage figures remain under pressure.

Heat and power costs: Riga mayor warns residents could face higher heat prices as Latvenergo plans tariff changes, while electricity prices in the Baltics stay volatile, with Estonia nearing €400/MWh Monday evening. Drones and defence: Experts debate why Ukrainian drones are increasingly crossing Baltic airspace; Zelensky says Ukraine tries to intercept them all and views such incidents as political pressure, as NATO members brace for more drone-linked risks. Border security upgrades: Estonia rolls out stationary anti-drone detection along the Russia border, with Latvia and the region pushing similar counter-drone measures. Politics and governance: Latvia’s new centre-right government is in focus after coalition turmoil tied to drone-related tensions. Public safety and weather: Latvia faces foggy mornings, warm days, and thunderstorms in the latest forecast. Latvian tragedy abroad: Three Latvian climbers die after a fall on Alaska’s Denali/McKinley; one is rescued and another is critically ill. Sports: Linards Feldbergs is praised after MVP-level playoff heroics for Sioux Falls Stampede.

Baltic Security: Estonia has begun installing stationary anti-drone detection systems along its border with Russia, with the first devices already operating on three border sections and plans to cover the rest by end-2026, using mobile surveillance where fixed equipment isn’t ready. NATO Posture: NATO also ran counter-drone training over Lithuania and Latvia, bringing together allied fighters and air-defence units in an integrated air-defence scenario. Ukraine War Signals: Ukrainian President Volodymyr Zelenskyy told “Face the Nation” that Russia is preparing a “big massive attack,” warning of likely drone, cruise missile and ballistic strikes and urging Ukrainians—especially children—to use bomb shelters. Regional Tensions: Putin warned that any territory seen as threatening Russia could be treated as a “legitimate target,” raising alarm in Latvia and Lithuania. Latvia in Focus: Latvia’s border security is also tightening, including “dragon’s teeth” fortifications, while Russia says it will take Latvia, Lithuania and Estonia to the UN’s top court over alleged treatment of Russian-speakers. Tragedy Abroad: Three Latvian climbers died after a fall near Denali Pass on Alaska’s Mount McKinley; one was rescued and taken to hospital.

Tragedy in the Baltics’ climbing community: Three Latvian mountaineers died after a fall near Denali Pass on Alaska’s Mount McKinley, with a fourth climber rescued and airlifted to hospital; the rescue shifted from search to recovery as rangers reported the incident on the West Buttress route. Regional security and drones: Estonia activated its first fixed anti-drone detection systems along parts of its border with Russia, with full coverage planned by year-end, as NATO members warn of rising drone incursions. Latvia in the drone war effort: The UK-led Drone Coalition, co-led by Latvia, says it has delivered more than 215,000 drones to Ukraine, including FPV, interceptor and reconnaissance models. NATO command changes in the Baltics: Germany and the Netherlands will jointly lead a new NATO command centre in Estonia, taking on deterrence and eastern-flank responsibilities. Undersea infrastructure protection: Seventeen countries, including Latvia, launched a framework to share principles for defending critical underwater cables and energy links. Local interest: Riga topped a new climate-resilience ranking among European capitals, placing Latvia among the leaders.

Drone Spillover and NATO Response: A Russian drone hit a residential apartment block in Galati, Romania, injuring two people and triggering strong NATO and EU condemnation, with Romania summoning Russia’s ambassador and calling for faster anti-drone transfers. Baltic Security Context: The incident feeds wider fears across the Baltics as Russia-linked GPS spoofing and drone incursions have repeatedly forced air-raid disruptions and raised questions about how NATO can defend allied airspace. Latvian Lives Lost Abroad: Three Latvian climbers died after a fall near Denali Pass on Alaska’s Mount McKinley; a fourth was rescued and airlifted to hospital as the operation shifted from rescue to recovery. Latvia’s Policy and Economy Watch: The EU’s new Startup and Scaleup Scoreboard highlights Latvia’s progress and remaining gaps, while separate reporting points to Latvia’s slowing GDP growth and rising retail sales. Sports: Latvia’s presence in international sport continued, including beach volleyball results from the Ostrava Elite16 and hockey-related updates involving Latvian players.