AGP Executive Report

Government Probe: Prime Minister Andris Kulbergs’ adviser and newly elected MP Mārtiņš Brencis has been detained in a case investigated by Latvia’s anti-corruption bureau for the European Public Prosecutor’s Office. The probe concerns offences affecting EU finances; Kulbergs says Brencis has been suspended. AirBaltic Cuts: The airline plans to lay off about 100 pilots and 200 cabin crew, with all cabin-crew cuts at its Riga base. The union disputes how staff are being selected. Energy: Latvia’s gas storage is 49.77% full, the lowest level in Europe, against an EU average of 74.93%. Rail Baltica: The project’s joint application seeks €357.5 million in EU funding for work across the Baltic states in 2027–30, including construction toward Lithuania in Latvia. Foreign Policy: Latvia abstained for the first time in 34 years on a UN resolution condemning the US embargo on Cuba; the vote passed 130–17, with 25 abstentions.

Political Probe: KNAB detained Prime Minister Andris Kulbergs’s adviser and newly elected MP Mārtiņš Brencis in an EPPO investigation into offences affecting EU finances. Kulbergs says he suspended Brencis. AirBaltic: The airline plans to cut about 100 pilots and 200 cabin crew as its fleet shrinks to 36 aircraft. The workers’ union disputes how the company is choosing who stays. Rail Baltica: RB Rail’s chief says delayed political decisions—not construction capacity—are now a major risk, despite €4.5 billion in EU funding allocated to the project. Defence & Security: Latvia has opened a €6 million research funding call for defence technologies. Riga officials suspect provocation after Saudi and Afghan flags were raised on Vanšu Bridge weeks apart. Financial Crime: Latvia’s first market-manipulation case has gone to court; prosecutors allege fictitious VEF share trades aimed at securing an extra €130,000. The defendants deny guilt. Livestock: Latvia confirmed its first bluetongue case after two cattle tested positive at a farm in Dienvidkurzeme.

Animal Health: Latvia has confirmed its first bluetongue case after two cattle tested positive at a farm in Dienvidkurzeme. Farmers are advised to use insect repellents or vaccination. Border Security: A Belarusian man was detained for allegedly transporting four people who had crossed into Latvia illegally. Latvia also extended its ban on occasional bus services to Russia and Belarus until October 2027. Ukraine: Latvia has joined a UK-led scheme to identify grain stolen from occupied Ukrainian territory, helping prevent it from entering international markets. Defence: NATO is holding major exercises in eastern Latvia, while authorities investigate drone wreckage found in Alūksne district. Riga Transport: Vanšu Bridge repairs could be delayed until 2028 if plans to manage traffic and build a temporary bridge are not ready. Rule of Law: Latvia rose two places to 19th in the World Justice Project index, but corruption and criminal justice remain areas of concern.

Border Security: A Belarusian man was detained in Valmiera Municipality after allegedly transporting four people who had crossed Latvia’s border illegally. Latvia has also extended its ban on occasional bus services to Russia and Belarus until October 2027, citing security risks. Riga Transport: Vanšu Bridge repairs could be delayed by three to six months if plans to manage traffic during construction are not ready; work is currently scheduled to start in late 2027. Ukraine Support: Latvia has joined a UK- and Ukraine-led scheme to identify grain stolen from occupied Ukrainian territory, helping track its movement through regional ports. Defence: NATO has launched major exercises in eastern Latvia, while authorities investigate drone wreckage found in Alūksne district. Public Services: Latvia’s blood reserves are running low, with donors—particularly those with O-positive, O-negative, A-positive and A-negative blood—being urged to come forward. Rule of Law: Latvia rose two places to 19th in the World Justice Project index, but corruption and weaknesses in criminal justice remain concerns.

NATO Exercises: About 3,000 soldiers and 1,000 vehicles are taking part in Resolute Reforger, the largest deployment drill yet by NATO’s brigade in Latvia, running through Nov. 2. Security: Latvia has joined a UK-Ukraine scheme to identify grain stolen from occupied Ukrainian territory, using laboratory analysis to check shipments. Transport: Latvia approved Tesla’s supervised assisted-driving system for public roads, becoming the 10th EU country to do so; the decision includes warnings tailored to winter conditions. Wages: The Welfare Ministry proposed raising the monthly minimum wage from €780 to €820 in 2027, below the €835 level indicated by the statutory calculation. Income: Eurostat put Latvia’s 2025 Gini coefficient at 35.6, the EU’s second-highest level of income inequality, behind Bulgaria. Regional tensions: The Telegraph reports that Russia may seek NATO troop withdrawals from Latvia and other eastern members in Ukraine peace talks; the reported demand has not been formally confirmed.

Security: NATO’s multinational brigade has begun “Resolute Reforger 2026” in eastern Latvia, with about 3,000 troops and 1,000 pieces of equipment taking part through November 8. The drills come as reports say Moscow may seek NATO troop withdrawals from Latvia and other eastern members in Ukraine peace talks. Ukraine Support: Latvia has joined a UK- and Ukraine-led scheme to identify grain stolen from occupied Ukrainian territory, helping prevent it from entering Baltic trade routes. Transport: Latvia’s transport minister says the country cannot keep funding Rail Baltica as before; the next government must set a clear spending plan amid funding gaps and rising costs. Politics: Prime Minister Andris Kulbergs is meeting his alliance’s MPs before coalition talks, scheduled to begin with potential partners on October 28. Digital Services: Tesla says Latvia has approved its assisted-driving system, making it the tenth EU country to do so. Cybersecurity: CERT.lv says hundreds of recent hacking attempts against Latvian websites failed, though several public-service sites remain offline or inaccessible from abroad.

Drone Incident: Latvia’s armed forces found a crashed drone in Alūksne district that may have entered the country’s airspace on October 18. Its origin is under investigation, and the military has ordered an internal review; no one was hurt and no civilian infrastructure was damaged. Defence: A NATO counter-drone exercise in Latvia highlighted how quickly battlefield technology changes: experts say opposing forces can develop countermeasures in about six weeks, putting pressure on allies to adapt procurement and response systems. Digital Economy: Latvia is weighing tokenization rules for 2027, with commercial property and government bonds in focus. The government says it will proceed cautiously, with anti-money-laundering safeguards a priority. Russian Grain: Latvia was among the top five routes for Russian grain exports this season, with 431,700 tonnes shipped through the country from July to October. Latvia bans Russian grain imports but has no transit ban in force; officials say they are working on a national or EU measure.

Drone Investigation: Wreckage of an unmanned aircraft was found in Alūksne district on October 24. It may have entered Latvian airspace on October 18; its origin is under investigation, and the armed forces have opened an internal review. No injuries or damage were reported. Russian Grain Transit: About 431,700 tonnes of Russian grain moved through Latvia between July and October, making the country one of the top five shipping routes. Imports are banned, but transit is not; the government is considering a transit ban, while Latvia has introduced checks on Belarusian grain shipments. Government Formation: Latvia’s president warned that time is running out, with talks on forming a new government yet to begin. Defence Cooperation: A counter-drone trial in Latvia linked sensors, command systems and interceptor drones from multiple suppliers in one operational workflow.

Drone Investigation: Debris from a foreign drone was found in Liepna parish, Alūksne district, on October 24. It may have entered Latvian airspace six days earlier; its origin is under investigation, and the armed forces have ordered an internal review. No injuries or damage were reported. Government Formation: Latvia’s president says time is running short, but talks on forming a new government have yet to begin, prolonging uncertainty after the election setback. Football: FK Metta have clinched promotion to Latvia’s top flight for 2027, with Ghanaian striker Prince Appiah Amoah scoring 21 goals this season. Food and Tourism: Latvia’s next MICHELIN Guide restaurant selection will be announced in Riga on November 5, as the country promotes its cuisine to attract visitors. Inequality: Eurostat figures put Latvia second-highest in the EU for income inequality.

Security: Latvia’s airspace alert in the Rēzekne and Krāslava districts has ended, as NATO steps up counter-drone and communications trials in the country. Politics: President Edgars Rinkēvičs has warned that time is running short to form a government, with coalition talks yet to begin. Trade and transport: airBaltic plans to wet-lease five A220s to Lufthansa Group airlines this winter while navigating US bankruptcy proceedings. The Port of Riga is also exploring a green-methanol production and marine-fuel hub. Economy: Latvia has the EU’s second-highest income inequality, while fuel prices are nearing what experts call a critical threshold. Grain controls: Latvia has introduced laboratory checks for all Belarusian grain shipments and joined Ukraine and Britain in tracking grain stolen from occupied Ukrainian territory.

Government Formation: Coalition talks are set to begin on 28 October, three weeks after President Edgars Rinkēvičs tasked Andris Kulbergs with forming a government. The president has warned that time is running out. Economic Outlook: Eurostat puts Latvia’s 2025 income inequality at 35.6, the EU’s second-highest level, behind Bulgaria. Riga Port: The port is exploring a green-methanol production and bunkering hub with South Korean and Latvian partners. Public Media: Saeima fast-tracked controversial amendments to media law, prompting concern from journalists; a committee has backed preserving Latvian Television and Radio’s brands. Grain Security: Latvia has introduced laboratory checks for all Belarusian grain shipments, while Latvia, Ukraine and Britain will track grain stolen by Russia from occupied territories. AirBaltic: The carrier plans to wet-lease five A220s to Lufthansa Group airlines this winter as it restructures under US bankruptcy proceedings.

Green Shipping: The Port of Riga has signed an agreement with South Korean and Latvian firms to explore producing green methanol and creating a marine-fuel bunkering hub. Riga Development: Estonian developer Invego plans to turn the Skonto stadium site into a new urban district, while keeping football there for five years as Latvia works toward a national stadium. Income Gap: Latvia had the EU’s second-highest income inequality in 2025, with a Gini score of 35.6, behind Bulgaria. Government Talks: Coalition negotiations are due to begin on October 28. President Edgars Rinkēvičs says a new government could still be in place by Independence Day. Grain Checks: Latvia is introducing laboratory checks for all Belarusian grain shipments and will verify grain to ensure it was not stolen from Russian-occupied Ukrainian territories. Fuel Costs: Diesel prices reached €2.07 a litre in mid-October; Citadele Bank says sustained high prices could hasten the shift to electric cars. Baltic Security: US senators are urging the Trump administration to release already-approved Baltic Security Initiative funds by year-end, citing growing Russian threats.

Security: NATO is testing communications, counter-drone systems and targeting technology at Latvian bases, while 12 local defence startups receive support to develop military technology. A fire sparked during grenade training at a Canadian base killed four soldiers preparing to deploy to Latvia. Politics: The Saeima reversed its decision to grant citizenship to Indian national Divya Kannan Vishwanath, just a week after approving it, citing doubts about the information behind the vote. MPs also passed fast-track media-law changes that drew criticism from public-media employees. Finance Minister Māris Kučinskis says next year’s budget will bring austerity, but no tax increases. Resilience: New rules will let mobile phones switch networks during a crisis. Riga’s port will test secure communications designed to keep critical operations connected. Grain and environment: Latvia is checking Russian and Belarusian grain for links to occupied Ukrainian territory and has joined Ukraine and Britain in a grain-tracing scheme. Eurostat figures also put Latvia first in the EU for plastic-packaging recycling, at 71%.

Defence Technology: Latvia has selected 12 startups for its first national defence pre-acceleration programme, offering each up to €120,000 and a chance to test technology with the armed forces. Citizenship U-turn: The Saeima has annulled its decision to grant Indian scientist Divya Kannan Vishwanath Latvian citizenship, citing doubts about whether MPs had complete information. Airspace Alert: A possible threat in the Krāslava and Rēzekne districts was declared over after less than 40 minutes; residents were told no action was needed. Healthcare: Pauls Stradiņš Clinical University Hospital has opened Latvia’s first robotic centre for treating cardiac arrhythmias and completed its initial procedures. Fuel Resilience: New rules will require designated petrol stations to maintain backup power and communications so they can keep supplying fuel during outages.**

Cybersecurity: Latvia took at least 165 state and municipal websites offline as a precaution after critical PHP vulnerabilities were found. Officials said no attack had been detected and the move was intended to prevent one. Relations with Russia: Moscow summoned Latvia’s envoy after Riga ordered the Russian Embassy’s social welfare staff dismissed. Russia said the move could disrupt pension payments to nearly 6,000 Russian military pensioners and relatives in Latvia. Cost of Living: Latvian diesel prices rose 10.3% from August to September, the EU’s second-largest monthly increase, as fuel prices climbed across the bloc. Fintech: Latvia’s central bank has issued more than 20 fintech licences this year, as the country seeks to attract firms looking for an EU base. Public Media: A Saeima committee backed keeping the Latvian Television and Latvian Radio names and brands, while also proposing that their news services not be merged. Basketball: VEF Riga’s unbeaten start ended with a 92–84 loss to Oradea in European competition.

Border Security: Latvia will spend €11.8 million on eastern-border defences, adding 27 kilometres of anti-tank trenches, barriers and drone sensors as officials say migration pressure continues. Energy Costs: European gas prices have reached their highest level since December 2022, while heating tariffs have already risen in many parts of Latvia, raising concerns about winter bills. Politics: A survey found 61% dissatisfied with the government and 31% satisfied; its rating remains negative but is among Latvia’s strongest since 2008. Economy: The EU’s Innovation Fund will provide up to €27.5 million for a Ventspils plant producing low-carbon cement. Latvia-Russia Tensions: Moscow summoned Latvia’s envoy to protest Riga’s demand to remove Russian embassy social-security staff, saying it could affect pension payments to nearly 6,000 Russian military pensioners and their families in Latvia. Consumer Costs: From November 1, a €2 handling fee will apply to each item in parcels arriving from outside the EU.