AGP Executive Report

Latvia-Ukraine Defence: President Volodymyr Zelenskyy met Latvian Defence Minister Raivis Melnis in Kyiv to discuss the newly signed Drone Deal, including sharing air-defence expertise and joint projects under the EU SAFE programme and NATO/JEF frameworks. EU Migration Pact: The EU Migration and Asylum Pact took effect, shifting the focus toward border control and return procedures, with Latvia having adopted a stricter immigration law aimed at strengthening border security. OECD on Latvia’s Economy: The OECD says Latvia is converging toward OECD living standards but still needs better public finances and administration, stronger health outcomes, and faster green transition to sustain growth. airBaltic Award: airBaltic was named Europe’s Best Wi‑Fi airline for 2026 by APEX, highlighting its free Starlink internet onboard. Riga Culture & Heritage: Riga’s Latvian National Museum of Art received an award-winning Italian art catalog project, and this weekend Latvia hosts European Archaeology Days with hands-on events at Āraiši and Turaida. Travel Rules Watch: New EU entry systems (EES and upcoming ETIAS) are expected to keep creating longer queues and uncertainty for travellers heading to Europe.

Latvia-Ukraine Security: Latvian Defence Minister Raivis Melnis arrived in Kyiv for his first foreign trip, meeting President Volodymyr Zelenskyy to discuss implementing the Ukraine–Latvia “Drone Deal,” sharing air-defence know-how, and exploring joint projects and funding under EU and NATO frameworks. Local Humanitarian Support: A Riga exhibition will showcase frontline medevac vehicles used by Latvian volunteers to evacuate wounded Ukrainian defenders, with the Ganta Fund saying it has helped save about 3,500 people since May 2025. Economy & Policy: The OECD says Latvia is converging toward OECD living standards but still needs better public spending efficiency, stronger administration, improved health outcomes, and faster green transition, while warning the fiscal deficit is widening. Rīga Development: A LaSER think tank report says Riga’s construction pace is slowed by fragmented planning and multiple departments handling projects, unlike more integrated models such as Helsinki. Transport & Travel: airBaltic’s onboard Wi‑Fi was named Best in Europe by APEX, and airlines are adjusting West Asia routes amid ongoing disruption. Nature Watch: Latvia’s nature agency urges people to report bear sightings and signs, citing at least 190 brown bears in the country.

Saeima Politics: Latvia’s parliament restored the mandates of former PM Evika Siliņa and former Justice Minister Inese Lībiņa-Egnere, and reinstated Kaspars Melnis, while also approving temporary mandates for Inga Priede and Normunds Dzintars—moves that could shape upcoming committee leadership. Immigration Overhaul: The Saeima passed a stricter immigration law in its final reading, tightening border checks, pre-entry requirements and biometric use, adding a border return procedure, and introducing limits on low-skilled employment; key rules start Jan. 1, 2027. Animal Welfare Vote: Lawmakers rejected in first reading amendments that would have phased out cage-raised laying hens, with supporters arguing it sends a clear signal to investors and retailers. Weather: Rain and occasional thunderstorms will keep moving through Latvia over the weekend, with temperatures mostly around +15 to +21°C and fog possible late Saturday into Sunday. Ukraine War Spillover: NATO and EU states are discussing faster drone-defense measures after repeated drone incidents near the eastern flank, including recent alerts involving Latvia. Culture & Community: Riga’s YouTube direct messages feature is back for eligible users, while Latvia’s retail sector is urged to get urgent policy help to stop main-street closures.

Drone Spillover & Security: Romania reported a suspected Ukrainian maritime drone explosion near Constanța on June 5, with authorities warning of further incidents and discussing safeguards like self-destruction if drones drift toward territorial waters. Baltic Influence Ops: Lithuanian and Estonian-linked figures, including Latvian politician Aleksejs Rosļikovs, are accused of Kremlin-coordinated influence efforts aimed at undermining trust in institutions and spreading vaccine conspiracy narratives. Ukraine Support in Latvia: Eurostat data shows 31,555 Ukrainians under temporary protection in Latvia. Local Economy & Mobility: Latvian residents spent EUR 528.0m on domestic trips in 2025, with Riga region the top destination by daily spend. Business & Industry: Brīvais vilnis bought Estonia’s Saare Kala Tootmine; Latvia’s insolvency service is also being liquidated as rules shift. Sports Spotlight: Latvia finally completed its 3x3 trophy haul, winning the FIBA 3x3 World Cup in Warsaw, with Kārlis Lasmanis and Nauris Miezis central to the run. Tech & Media: YouTube has relaunched direct messaging in Latvia and other listed countries, with age and verified-channel limits.

Drone & security diplomacy: Ukraine and Latvia signed a new drone deal in Tallinn, with Zelenskyy framing it as part of wider defense tech sharing as airspace incidents keep pressure on the region. NATO readiness: Lithuania’s PM called for a stronger NATO presence after drone-related violations, pointing to Baltic Air Policing interceptions and urging credible deterrence on the eastern flank. Iran pressure campaign: 22 countries including Latvia, Estonia, and the US jointly condemned Iran’s “lethal plotting” and demanded it stop attacks on “our soil,” citing IRGC-linked actions and a campaign attributed to HAYI. Local infrastructure & safety: Riga Central Market’s meat pavilion was ordered to close after an inspection by the State Construction Control Bureau, with the city expected to fund roof reinforcement. Agriculture & regulation: Latvia’s Plant Protection Service found unauthorised GMO “Norfolk Purple” tomato seedlings and ordered destruction. Weather alert: Latvia issued yellow warnings for severe thunderstorms nationwide, with orange for central and eastern regions. Human story: Donations are sought for Latvian climber Mārtiņš Bilzēns after a Denali fall left him in critical condition. Business: Balticovo opened a €120m egg production complex in Iecava, investing in cage-free capacity. Culture: Latvian rock musician Johnny Salamander (Jānis Gūža) died at 60.

Drone Diplomacy & Defense: Ukraine signed a drone deal with Latvia in Tallinn, with Zelenskyy saying it also covers specialist training and security cooperation—while Latvia’s leaders stress that NATO fighter-jet downing is only a temporary fix and that local capabilities must grow. NATO Readiness: Canada formally took over command of NATO Multinational Brigade–Latvia at Ādaži, underscoring continued deterrence on the eastern flank. Airspace Pressure: NATO allies are pushing to fast-track drone-response projects ahead of the July summit after repeated drone incidents across the region. Local Governance & Infrastructure: Riga Central Market’s meat pavilion was ordered to close immediately after State Construction Control Bureau inspection, with the city expected to fund roof reinforcement. Culture & Arts: Latvian rock musician Johnny Salamander (Jānis Gūža) died at 60; Viesturs Kairišs’ Cannes-recognised film “Ulya” continues to draw international praise. Music Access: LMIC launched an online sheet-music store for Latvian composers. Business & Security Industry: Ammunity signed an LOI with Poland’s Mesko to strengthen regional ammunition supply chains. Environment & Weather: Heavy rain and possible hail/thunderstorms are forecast across Latvia.

Drone Diplomacy: Ukraine and Latvia signed a drone cooperation “deal” in Tallinn, with Zelenskyy saying Russia deliberately redirects drones to sow blame and tensions; the agreement is meant to share counter-drone expertise and strengthen Baltic air safety. Regional Summit: Nordic-Baltic leaders backed Ukraine’s “irreversible” NATO path and pushed for faster EU accession steps, while Zelenskyy warned any ceasefire must be about regional security, not just Ukraine. Airspace Alarm in Latvia: French Rafale jets shot down a drone that entered Latvian airspace, triggering phone alerts in eastern municipalities and a “seek shelter indoors” message before the warning was lifted. NATO Readiness in the North: NATO began operations of Forward Land Forces Finland in Finland and Sweden to bolster deterrence on the northeastern flank. Baltic Sea Under Pressure: The U.S. Navy used BALTOPS near Liepāja to demonstrate unmanned underwater surveillance amid growing concern over threats to undersea infrastructure. Local Life Disrupted: In Latvia’s “Land of Blue Lakes,” tourism businesses reported cancellations tied to drone alerts, with guesthouses left empty. Weather Watch: Rain systems are set to move across Latvia, with heavier, stormy downpours expected in the east.

Defense & Drones: Ukraine and Latvia signed a new Drone Deal in Tallinn, with Latvian PM Andris Kulbergs and President Volodymyr Zelensky agreeing on joint drone, air-defense and missile-defense cooperation, plus technology and know-how sharing to strengthen Latvia’s integrated air defense. Regional Diplomacy: Zelensky also met Nordic and Baltic leaders at the NB8 summit in Estonia, where governments backed Ukraine’s “swift accession” to the EU and stressed tighter defense investment and deterrence as Russia’s main threat. EU Sanctions: The European Commission proposed a new sanctions package targeting Russia’s “shadow fleet” and would bar entry to the EU for Russian military personnel involved since the 2022 invasion. NATO Posture: NATO began operations to strengthen Finland and Sweden’s defense, including Forward Land Forces Finland with a Swedish battlegroup under Allied command. Local Economy: Latvia’s inflation rose to 3.5% year-on-year in May, driven mainly by housing/utilities and services like restaurants and accommodation. Travel & Borders: A new warning says delays from the EU’s Entry/Exit System could cut Schengen tourism by up to one-third, costing as much as $45.4bn.

Baltic Air Policing: French Rafale jets shot down a foreign drone that entered Latvian airspace near Berzgale, with Latvia saying it was diverted by Russian electronic warfare; eastern regions briefly issued shelter-in-place guidance, and officials stressed no damage or injuries. NATO Readiness: The interception marked the first confirmed drone kill over Latvia, underscoring NATO’s deterrence posture as drone incursions from the Ukraine war spill into Baltic skies. Ukraine War Update: Russia’s fuel and energy supply problems are being reported after strikes on Crimean and southern oil infrastructure, while fighting continues across Ukraine with claims of shifting front-line gains. EU Sanctions Pressure: Nine EU countries backed tighter, more consistent Schengen visa rules for Russian citizens, arguing uneven implementation weakens sanctions and raises security risks. Local Accountability: Latvia’s anti-corruption bureau (KNAB) moved to seek criminal proceedings against Rēzekne’s former mayor over a costly spa project and alleged withholding of key project information. Weather Watch: Rain and thunderstorms are expected to move across Latvia through midweek, with heavier downpours forecast in the east.

Baltic Air Policing: French Rafale jets shot down a foreign drone that entered Latvian airspace near Berzgale (Latgale) after it crossed from Russia, with Latvia saying it was diverted by “Russian electronic warfare”; air alerts were issued in eastern municipalities and later lifted, and officials stressed NATO’s readiness to defend every part of the country. NATO Drone Shift: A major NATO exercise in Finland underscored how drones and AI are reshaping tactics, warning that traditional armored forces are vulnerable when threats come in swarms and at low altitude. Ukraine War Spillover: Kyiv reported recapturing more territory than it lost in May, while NATO-linked drone incidents across the region continue to raise escalation fears. Corruption Watch: Latvia’s anti-corruption bureau (KNAB) is pushing criminal proceedings against Rēzekne’s former mayor over an expensive spa project and alleged withholding of key cost information. Media Tech: Redge Technologies was selected to build a new unified streaming platform for Latvian Public Service Media. Trade & Security: Latvia restricted access to Russian e-commerce Wildberries and other sites over content tied to Russia’s war and annexation narrative. Aviation Connectivity: Wizz Air signed a Starlink deal to equip its fleet from 2027, following airBaltic’s earlier rollout.

Aerial Security: NATO French fighter jets shot down a drone that entered Latvian airspace from Russia, ending an air threat alert in eastern municipalities (Ludza, Balvi, Alūksne, and Rēzekne); Latvia said the breach was likely linked to Russian electronic warfare. Public Safety: The same alert system used cell broadcasts, with residents told to take shelter indoors during the orange/yellow phases. Weather Watch: Latvia braces for a wet week with heavy rain and thunderstorms, plus a yellow warning for eastern areas. Health & Community: The State Blood Donor Centre reports a critical shortage of donors across all blood types and urges people to donate, including via mobile drives. Local Governance: Rīga City Council amended school and kindergarten catering procurement after challenges over “green” criteria, raising concerns for organic food delivery. Justice: Latvia’s Justice Minister ordered a report on a juvenile death at Olaine Prison Hospital and a wider review of deaths and suicides in prisons. Transport Incident: A man died after being struck by a train in Riga near Zolitūdes Street; police opened a criminal investigation. Defense Cooperation: Latvia joined a new international initiative to protect critical underwater infrastructure, alongside Estonia, Finland, Sweden and others. Sports: Latvia won the FIBA 3x3 World Cup in Warsaw, beating Germany in the men’s final.

NATO & Baltic Security: NATO has started ground operations to strengthen defenses around Sweden and Finland, with a new multinational combat group in Finland under the Forward Land Forces framework, as the alliance focuses on the northeastern flank. Latvia in the EU spotlight: Latvia says it won’t “accept new migrants” or pay for them under the EU migration solidarity mechanism, choosing alternative support measures as a new rules package takes effect June 12. Riga’s finance diplomacy: The EBRD annual meeting in Riga drew international partners, including Azerbaijan and the UAE, while the bank deepened plans for pan-Baltic capital market integration with Estonia, Latvia and Lithuania. Schengen visa pressure: 11 EU countries, including Latvia, are urging tighter Schengen visa rules for Russians, citing rising visa issuance despite the war in Ukraine. Local sports: Latvia’s women host Israel in Riga today in the CEV European League, while Sonja Misiņa won second place at Eurovision Young Musicians in Yerevan and Latvia’s Daria Semenistaja is set for a WTA 125 final in Makarska.

Baltic Security: NATO ran “Baltic Zenith 2026” air-defence drills in Latvia, with units from Latvia, Lithuania, Estonia, Canada and Sweden firing live during day and night training at the Yurmalciems range, aiming to boost interoperability as Russia also stages drills nearby. EU Border Policy: Eleven EU countries, including Latvia and Estonia, are pushing the European Commission for tighter Schengen visa rules for Russian citizens, arguing current issuance patterns undermine security and trust; the Commission says “targeted” restrictions are planned for next year. Latvia in EU Compliance: Cyprus and 12 other states, including Latvia, face EU legal action after missing deadlines to set penalties under the ReFuelEU Aviation rules, with Brussels starting formal infringement steps. EBRD in Riga: The UAE joined the EBRD Board of Governors meeting in Riga, while Latvia’s foreign minister urged NATO to focus on deterrence and deployable capabilities. Energy Storage Focus: Baltic energy experts warned that solar-driven price drops make storage and demand growth (including data centres) key to balancing the grid.

Latvia’s Election Watch: Latvia’s pre-election campaign period for the Saeima starts today, with KNAB warning parties to follow strict rules on political advertising and to label paid content clearly. Riga’s EBRD Moment: The EBRD annual meeting in Riga continues to shape regional priorities, including expanded InvestEU guarantees for higher-risk projects and ongoing support for conflict-affected economies. Defense & Deterrence: Latvia’s Foreign Minister Baiba Braže urged NATO to keep collective defense and deterrence at the center, stressing deployable forces, resilient supply chains, and investments in air defense and drones. Energy Storage Push: Sunly and Rolls-Royce signed a major battery storage deal for Latvia, aiming to solve the “realization” problem as solar output can drive prices very low. EU Visa Pressure: The European Commission is set to propose targeted Schengen visa restrictions for Russian citizens next year, responding to calls from a coalition including Latvia. Baltic Pride in Tallinn: Baltic Pride drew crowds in Tallinn with the theme “Silence Won’t Defeat Hate,” continuing the rotating regional march tradition.

EBRD in Riga, EU finance push: The EBRD and the EU expanded InvestEU guarantees by up to €478.4m, plus €11.4m for advisory work, to help fund higher-risk green, digital and infrastructure projects across EU countries where the bank operates. Latvia energy storage 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 regional expansion), with Rolls-Royce as main contractor and Valmiera’s first unit due in early 2027. Latvia in EU visa debate: Latvia joined a group of EU states urging tougher Schengen visa rules for Russian tourists, arguing that holiday travel amid the war is politically and morally unacceptable and could raise security concerns across the bloc. Latvia sports spotlight: Latvia’s men advanced in the FIBA 3x3 World Cup play-ins, beating New Zealand 21-19, setting up quarter-final action against Lithuania. Pay transparency deadline pressure: The EU Pay Transparency Directive is due by 7 June 2026, but many countries are lagging; Latvia is listed among those that have published draft laws, while others have taken no action yet. Riga tech and identity: IDenfy added Smart-ID to its electronic identity verification platform for Latvia, Lithuania and Estonia, aiming to let businesses verify customers using everyday mobile IDs.

Riga Finance & Energy: The EBRD’s annual Board of Governors meeting is underway in Riga, with EU Economy Commissioner Valdis Dombrovskis saying talks will focus on support for Ukraine and Moldova and how the bank is expanding globally, including technology priorities. Green Transition: EBRD also approved a €26m loan to Next Biogas (Host Group) to convert a Lēdurga biogas plant into a major biomethane facility, targeting grid injection and exports. Battery Boom: Rolls-Royce Power Systems and Sunly signed contracts for four Latvia battery energy storage projects totaling 490 MWh, with the first due in Q1 2027 and cybersecurity compliance cited as key. Defence Cooperation: Latvia and Ukraine are drafting a long-term deal to deepen work on drone tech, air defence, cybersecurity, and defence-industry integration. EU Border Politics: Latvia is among countries pushing the EU to tighten Schengen tourist visa rules for Russians, arguing current issuance remains too uneven. Local Business: Bank of Latvia approved LAU Infra Group’s IPO prospectus; subscriptions start June 10 ahead of Nasdaq Riga listing. Tech & Identity: iDenfy added Smart-ID to its identity verification platform for Latvia, Lithuania and Estonia.