AGP Executive Report

Digital Euro: The ECB has picked 36 payment service providers to join the digital euro pilot, due to start in the second half of 2027 for 12 months, to test technical operations and user experience. Latvia Telecom Deal: Latvia’s government is in talks with 23 potential investors for the planned acquisition of Telia’s stakes in LMT and Tet, with valuations and security screening under way. Baltic Way Memorial: A Baltic Way commemorative plaque was unveiled in Paris, linking the 1989 human chain to today’s calls for freedom and Ukraine’s right to decide its future. Latvia-Ukraine Football: The TARGET project uses football to challenge gender stereotypes, with Latvia and Ukraine adapting the approach to their different realities. Security & Hybrid Threats: Latvia’s border guard chief says Belarus’s hybrid war targets Latvia, while NATO-related reporting highlights rising concern about provocations in the region. Environment: Latvia is grappling with textile waste as recycling remains difficult, and forecasts point to a warm, changeable week with thunderstorms possible.

Venice Biennale Funding: The European Commission recommends stopping €2m in EU grant money for the Venice Biennale after Russia’s national pavilion was included, saying taxpayer-funded culture must protect democratic values. Defense & Budgets: Latvia’s Finance Ministry says meeting a 5% of GDP defense target will require major new funding—rising from €92.1m in 2027 to over €1.12bn by 2030—while warning Latvia’s regressive tax system could deepen inequality. Cyber Sanctions: The EU and UK hit Russian military intelligence officers, hackers and firms with sanctions over a yearslong cyberespionage and sabotage campaign targeting European critical infrastructure. South China Sea: 14 countries including Latvia reaffirmed a 2016 ruling rejecting China’s expansive South China Sea claims; China responded with a fresh statement disputing the award’s relevance. Latvia Border Security: Latvia’s border guard chief says Belarus’s hybrid war is aimed at Latvia, with the border situation posing major challenges. Environment & Wildlife: Latvia sets the 2026/27 wolf hunting quota at 400 animals, split into two management units. Local Watch: Search continues for a missing diver in the Baltic Sea near Roja.

Forest Deal: Latvia’s state forest company LVM has bought nearly 5,000 hectares of forest land in Pasienes parish, Ludza region, from Swedish owners for just over €26 million, aiming to secure long-term wood supplies for the Latvian economy. South China Sea Diplomacy: Latvia and 13 other countries reaffirmed the 2016 arbitration ruling that rejects China’s South China Sea claims as having “no legal basis,” while Beijing hit back, calling the decision “null and void” and summoning Japan’s envoy. EU Cyber Sanctions: The EU imposed sanctions on Russian military intelligence officers, hackers and linked entities over a yearslong cyber espionage campaign targeting governments and critical infrastructure. Border Support: Lithuania sent a second group of border guards to assist Latvia, focusing on preventing illegal migration along the Belarus-linked border. Public Safety & Weather: Severe thunderstorms in eastern and southeastern Latvia knocked out power for thousands, with repairs ongoing; forecasters also expect a warm, mostly dry week ahead. Environment & Waste: A1 highway free parking near the Vidzeme coast is again facing overflowing bins and a lack of toilets during peak summer. Culture & Film Funding: Latvia’s National Film Centre allocated €250,000 for five minority coproduction projects.

Storm Disruptions: Severe thunderstorms hit eastern Latvia, knocking out power for thousands, with outages peaking at about 9,300 customers and repairs continuing into the evening. Foreign Policy: Latvia joined 13 other countries and the EU in reaffirming the 2016 South China Sea arbitration ruling as final and legally binding, while China rejected it and said it has no binding force. Defense & Security: A report says NATO failed to meet its Vilnius commitment for permanent rotational Baltic air defense, with coverage reduced to short deployments and exercises. Culture & Film: Latvia’s National Film Centre approved €250,000 for five minority coproductions, supporting projects including Latvian-linked animation and feature films. Arts & Events: Cinehill Film Festival named Montenegro its partner country for late-July programming in Croatia. Sports (Latvia-linked): Latvia is among the signatories in the South China Sea statement; locally, no major Latvia-only sports item appeared in the provided texts.

South China Sea Diplomacy: The US, UK and 12 other countries—including Latvia—reaffirmed that China’s expansive South China Sea claims are illegal under the 2016 Hague arbitration, calling the award “final, legally binding and definitive,” while the EU backed the ruling and China again rejected it. Baltic-Russia Tensions: Latvia, Estonia and Lithuania lodged a joint protest in Moscow over Russian disinformation, stressing they have not opened their airspace for attacks on targets in Russia and denying claims tied to drone incidents. NATO/Ukraine-Related Tributes: NATO allies, Ukraine and Israel paid tribute to US Senator Lindsey Graham, praising his support for Ukraine, NATO’s eastern flank and trans-Atlantic ties. Latvia Road Safety: A deadly weekend on Latvian roads saw six killed in multiple crashes, including a collision on the Tallinn highway involving Turkish citizens and a fatal quad-bike overturn. Culture Jobs: Eurostat data puts Latvia at 4.8% of jobs in the cultural sector, matching Lithuania and trailing Estonia (5.3%).

Baltic Security: Latvia, Estonia and Lithuania have formally rejected Russian claims that they opened their airspace for attacks on targets in Russia, saying Moscow is spreading lies amid its war against Ukraine. Visa Updates: China published a list of 35 European countries whose citizens can enter visa-free for short stays, including Latvia; the US also keeps visa-free entry for citizens of 42 countries under ESTA. EU Funding: The EU Council approved a revised €10bn recovery plan for Hungary and backed updated recovery amendments for several states including Latvia. Sports Spotlight: Jelena Ostapenko won Wimbledon mixed doubles with Marcelo Arevalo, while Henry Patten and Harri Heliovaara took the men’s doubles title. Latvia in the News: Latvia’s foreign ministry says everyone in the country is protected by the rule of law regardless of ethnicity, responding to Russian deportation allegations. Business & Tech: Latvia-linked civic AI efforts are highlighted in Ukraine’s new Y-Park LegalTech hub, launched as Europe’s first dedicated legal AI innovation center.

Baltic-Russia Tensions: Latvia, Estonia and Lithuania summoned Russian diplomats in Moscow to reject fresh Kremlin claims about Baltic “mass deportations” and alleged airspace use for strikes, saying the accusations are part of a propaganda pattern. NATO Air Defense Upgrade: NATO’s Baltic air policing mission is being shifted toward full air-defense status, with fighter pilots authorized to destroy threatening objects without separate political sign-off, and Ämari Air Base gaining NATO operational base status. Latvia Telecom Deal Talks: Latvia’s government is in advanced talks with 23 potential investors over the planned acquisition of LMT and Tet shares from Telia, with binding offers expected after security checks. EU Recovery Funding: The EU approved Hungary’s €10bn recovery plan and also backed targeted amendments to several countries’ plans, including Latvia. Latvia Trade Watch: Latvia’s foreign trade deficit widened in May as imports rose faster than exports, with the deficit reaching €374m. Sports Spotlight: Jelena Ostapenko and Marcelo Arevalo won Wimbledon mixed doubles, with Ostapenko taking her first Wimbledon title.

OSCE Moscow Mechanism: A new report says Russia’s militarization and indoctrination of Ukrainian children is a systemic state policy and a crime against humanity, describing forced integration into Russian education, propaganda from age 6, military-style training in schools from 13, and pressure on children, parents and teachers. Latvia Telecom Deal: Latvia’s government is in advanced talks with 23 potential investors about buying Telia’s LMT and Tet shares; binding offers are expected after due diligence and security checks. Baltic Defense Tech: NATO’s GlobalEye AWACS replacement plan is moving forward, while NATO reconnaissance aircraft have been redeployed to the Baltic region for flights over Latvia and neighbors. EU Recovery Funding: Ecofin approved revised recovery and resilience plans, including Hungary’s €10bn package, plus amendments covering Latvia and other states. Latvia Economy: Latvia’s foreign trade turnover rose in May, but the trade deficit widened as imports grew faster than exports. Data Protection: A Latvia-focused push for stronger GDPR compliance is highlighted, with rising expectations for businesses. Sports: Jelena Ostapenko and Marcelo Arevalo won Wimbledon mixed doubles, completing a dramatic comeback.

Diplomacy & Consular Work: Riga will host the 12th meeting of Latvian honorary consuls (July 13–15), bringing together 90+ honorary consuls from 44 countries to discuss foreign policy, security priorities, and consular matters. Culture & Music: Riga is set for the International Trombone Festival (July 29–Aug 1), expected to draw 500+ trombonists and musicians, with concerts, master classes, and competitions. Arts & Exhibitions: Lithuania’s “ArtVilnius’26” (Oct 1–4) will feature Latvian galleries and artists, including ISSP Gallery and the duo “MareunRol’s,” highlighting Baltic creative links. Public Safety: Latvia’s ambulance crews have been equipped with body armour and helmets to better protect staff during crises. Transport Planning: Latvia’s transport authority says the regional bus route network is planned to stay at its current scale in 2027, while it reviews how to optimize services and improve commercial route strategy. Local Mobility & Travel: Japan has published visa-free entry rules for 74 countries/regions, with stay lengths varying by nationality. Sports: Jelena Ostapenko and Marcelo Arevalo won Wimbledon mixed doubles after a comeback against Australia’s Storm Hunter and Marc Polmans. Weather: Latvia can expect mostly cloudy conditions with rain showers, fog in places, and a gradual shift toward warmer temperatures over the weekend.

Latvia Economy Watch: Latvia’s Finance Ministry cut its growth forecast for 2026 and 2027 to 2.0% for both years and lifted inflation projections, warning of wider budget deficits as energy costs rise and uncertainty grows. NATO & Baltic Security: NATO agreed to upgrade Baltic Air Policing into a true air defense mission, giving fighter jets broader authority to intercept and, if needed, shoot down hostile targets. Defense Financing: Latvia is among the backers of a Canada-based Defence, Security and Resilience Bank aimed at financing defense and security projects, with operations planned for 2027. airBaltic Under Pressure: Fitch put airBaltic and its secured bonds on Negative Rating Watch, citing liquidity strain and weaker financial flexibility. Education: A unified admissions process for undergraduate studies begins at eight Latvian universities via the Latvija.lv portal. Local Business & IT: LVM says it’s still restoring systems after a ransomware attack disrupted services weeks ago. Sports Spotlight: Jelena Ostapenko won Wimbledon mixed doubles for Latvia, coming back from a set down to beat Australia’s Storm Hunter and Marc Polmans.

NATO Summit in Ankara: NATO leaders reaffirmed Article 5 and pledged at least $140 billion in military aid for Ukraine, while also pushing faster drone and counter-drone work and deeper defence-industry cooperation. Patriot Breakthrough for Ukraine: Trump said the US will license Ukraine to manufacture Patriot air-defence systems, a major shift after years of Kyiv’s requests. Baltic Air Policing Upgrade: NATO agreed to expand the Baltic air policing mission into an air defence mission, with broader authority to respond to threats like drones. Latvia Border Pressure: Latvia’s Border Guard chief warned migrant smugglers are getting more aggressive, with thousands stopped this year and calls for stronger military support at the external border. airBaltic Under Scrutiny: Latvia’s PM said the airline can’t operate without state funding and demanded a business plan before further decisions; Fitch also flagged liquidity risk. Rail Modernisation Troubles: Latvia’s railway platform upgrade is facing major delays and cost overruns, with some work halted on the Aizkraukle line. Corruption Probe Staffing Gap: Latvia’s Prosecutor General warned corruption schemes are going undetected due to a shortage of undercover operational officers. Tech for Medicine: RTU unveiled an AI data server to speed up cancer diagnosis and tailor treatments. Weather Watch: Heavy rain is easing, but winds and showers continue, with warmer conditions expected next week.

Patriot Boost for Ukraine: At the NATO summit in Türkiye, President Donald Trump said the U.S. will license Ukraine to manufacture Patriot air defence systems, a major step for Kyiv’s missile defence needs. Latvia’s NATO Message: Latvian President Edgars Rinkēvičs said Russia relies on intimidation and hybrid pressure, but Latvia is backed by NATO if attacked, while noting Latvia already meets the 5% defence spending target. Baltic Air Policing Upgrade: NATO agreed to expand the Baltic air policing mission into air defence, giving pilots a wider mandate to destroy objects posing threats. Local Energy Pressure: Latvia’s minister called pellet shortages and price spikes “absurd,” urging domestic producers to prioritise household supply and commit to higher capacity and transparent pricing. Rail Job Cuts: LDz Cargo plans layoffs of 300 employees starting 1 August, citing market shifts and higher Russian rail tariffs. EU Serbia Talks Blocked: Eight EU states opposed opening Serbia’s next accession cluster, with Latvia among those unconvinced rather than fully rejecting. Riga Oncology Rebuild: Riga East University Hospital’s oncology centre reconstruction starts in earnest, costing €63m and due to finish in fall 2028.

NATO Summit Focus: Latvian President Edgars Rinkēvičs urged allies in Ankara to keep backing Ukraine and warned Russia “thrives on fear,” stressing Latvia’s exposure to hybrid attacks and the need for stronger air defence and counter-drone readiness. Defence Finance: Romania joined the Canada-led Defence, Security and Resilience Bank, with Latvia among the founding backers, aiming to mobilize capital and cut financing costs for defence and security investments. Canada-Latvia Ties: Prime Minister Mark Carney met Rinkēvičs and said Canada will extend Operation REASSURANCE to 2031, boost deployed personnel up to 2,600, and become a framework nation for NATO’s Multinational Division North. Energy Grid Planning: Latvia, Lithuania and Germany seek EU Project of Common Interest status for the Baltic–German PowerLink undersea electricity link to boost trade and integrate offshore wind. Local Economy & Housing: Riga home prices are rising about twice as fast as rents, with buyers increasingly choosing to own rather than rent. Weather: Heavy rain and gusty winds are expected across Latvia into the weekend.

NATO Summit in Ankara: Canada’s PM Mark Carney announced nearly $900M in new military aid for Ukraine, including $475M for ammunition and $400M for 35 Canadian-made armoured vehicles, as allies also push higher defence spending and industrial deals. Baltic Defence Focus: NATO estimates defence spending will top $1.8T in 2026, with Latvia projected to spend 4.92% of GDP on core defence—one of five allies expected to exceed 3.5%. Ukraine Air Defence Push: Nine EU countries, including Latvia, urged the European Commission to quickly approve buying US-made air defence missiles for Ukraine using the €90B 2026–2027 package. Latvia in the Mix: Canada-led Defence, Security and Resilience Bank support grew to nine countries with Latvia among the backers, aiming for operations in 2027. Local Governance: Latvia’s government approved amendments to modernize international road transport controls, moving permits toward electronic systems to cut border waiting times. Culture & Society: Riga Contemporary wrapped its second edition with 17,000 visitors, keeping fees affordable and entry free for visitors.

NATO & Defence: Eleven NATO countries, including Latvia, announced a joint procurement of Saab GlobalEye aircraft to replace part of the aging Boeing E-3 AWACS fleet, boosting air, land and sea surveillance. Security Tensions: Russia’s deputy foreign minister warned the Baltic states are “playing with fire” by allowing territory for strikes on Russia, while Latvia and others deny the claims. Latvia Politics & Governance: Prime Minister Andris Kulbergs admitted the government likely won’t deliver everything in its declaration, citing overloaded day-to-day work and a need for more results-focused administration. Anti-Corruption: The OECD says Latvia improved its foreign bribery framework and enforcement, including sanctions and new trial steps, but still needs stronger detection and clearer company reporting expectations. Public Media: Latvia’s public media Ombudsman defended LSM’s right to choose not to cover an event, stressing editorial independence over pressure to broadcast. Health & Rights: The Ombudsman questioned whether a hospital’s decision not to remove a bullet fully respected patient rights, even if clinicians deemed it acceptable. Crime: Police detained four people suspected of systematic animal abuse, including filmed sexual acts, with horses, a dog and a cat seized. Sports: Latvia beat Austria 112:66 to advance in 2027 World Cup qualifiers, and Riga’s basketball fans get another big night with the World Cup hopes still alive. Weather: A cyclone is bringing heavy, prolonged rain and possible thunderstorms, with gusty winds along the coast.

Espionage Crackdown: Latvia’s State Security Service (VDD) has asked prosecutors to open cases against four Latvian nationals accused of spying for Russia via the pro-Kremlin “Baltic Antifascists,” including alleged sharing of information about Ukraine support, National Armed Forces locations, and Riga Airport security and logistics. NATO Pressure: Ahead of the Ankara summit, the US urged allies to move faster toward the 5% defense-spending goal, naming the Baltic states among leaders. airBaltic Watch: Prime Minister Andris Kulbergs said the government is waiting for airBaltic’s revised business plan before any further state-backed moves, demanding “complete clarity” on strategy and investors. Ukraine Tech Deals: Kyiv says it aims to sign drone-related defense agreements with at least seven NATO states by year-end, with Latvia already among partners. Economy & Energy: Latvia’s industrial production rose 6.2% year-on-year in May; fuel prices fell 6.7% in June. Public Transport Disruption: Riga-area bus trips were cancelled due to a driver shortage, with dozens of missed routes reported over several days. Culture & Society: Riga Contemporary wrapped a record-breaking second edition with 17,000 visitors, while a new Abbé Edgeworth exhibition opens in Edgeworthstown Library.