AGP Executive Report

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.

Border Fortifications: Latvia has started installing “dragon’s teeth” anti-tank barriers along the border with Russia, with concrete blocks in three rows and plans to expand anti-tank ditches as part of the Baltic Defense Line. Drone Spillover Fears: NATO and the EU condemned a Russian drone strike that hit an apartment block in Romania near the Ukraine border, injuring two and triggering evacuations, while Putin questioned whether the drone was Russian and floated a possible Ukrainian origin. Regional Pressure on Russia: The Council of the Baltic Sea States called for tougher pressure on Russia, including stronger sanctions enforcement and possible new measures such as a maritime services ban on Russian energy exports. Latvia’s New Government: Latvia’s parliament approved a new government led by Andris Kulbergs, with political analysts pointing to major challenges ahead. Aviation & Business: Riga Airport selected international partners for a new 12-year commercial overhaul, and airBaltic marked its 10th anniversary of the Riga–Reykjavík route. Culture & Sports: Nauris Puntulis returned as Latvia’s Minister of Culture, while Latvia is set to be among the teams at the FIBA 3×3 World Cup in Warsaw.

Latvian Politics: Latvia’s Saeima has approved a new four-party coalition led by interim PM Andris Kulbergs after the previous government collapsed over handling of stray drone incidents, with President Edgars Rinkēvičs warning the new team faces tough security work and ongoing Russian provocations. Border Security: Latvia has started installing heavy “dragon’s teeth” anti-tank barriers along the Russia border as NATO plans to bolster the eastern flank, while Rinkēvičs urges the EU to fund border regions hit by drone threats. NATO Drones: NATO condemned Russia after a drone struck a Romanian apartment building near the Ukrainian border, injuring two and prompting calls to speed up anti-drone capabilities. Weather Watch: Friday brings unsettled conditions—sun and clouds in the west, more overcast with intermittent rain and possible thunderstorms in the east, plus gusty winds. Sports: Latvia’s ice hockey run ended with a narrow loss to Norway, while Canada beat the U.S. 4-0 to reach the IIHF semifinals.

New Latvian Government: Latvia’s Saeima approved a new four-party coalition led by Andris Kulbergs as prime minister (66 votes in favor), after the previous government collapsed over disputes tied to stray Ukraine drones. The cabinet sets priorities on border security and anti-drone measures, secure elections, budget stability, and cracking down on corruption and cartels, with elections due Oct. 3. EU Border Funding Push: President Edgars Rinkēvičs urged the EU to boost funding for border regions hit by drone incursions, saying the disruptions are now affecting daily life, local business, and school exams. NATO Command Shift: Germany and the Netherlands will lead a new NATO tactical command centre in the Baltics, with the German-Netherlands Corps taking primary responsibility for Estonia and Latvia from mid-year, boosting deterrence on NATO’s eastern flank. Border Fortifications: Latvia has started installing “dragon’s teeth” anti-tank barriers along the Russia border as part of the Baltic Defense Line, aiming to deter and physically stop any incursion.

New Coalition & Security Priorities: Latvia’s incoming government parties signed their coalition agreement and declaration, with an extraordinary Saeima session set for Thursday to approve the new cabinet led by Andris Kulbergs, putting stabilising the security situation first and pledging budget discipline, economic development, social policy and 5% of GDP for defence. Opposition Pushback: Progressives leader Andris Šuvajevs says ZZS continuing to run the Agriculture Ministry is “unacceptable,” pointing to the arrest of former agriculture minister Armands Krauze in the timber industry case, while ZZS argues Krauze has already taken political responsibility. Border Defence Upgrade: Latvia has started deploying anti-mobility “dragon’s teeth” barriers along the expropriated Russia border areas, and officials also say anti-drone defences will be strengthened along the Russia-Belarus line as unmanned incursions rise. EU Funding for Drone-Hit Regions: Latvia’s president Edgars Rinkēvičs urges the EU to add money for frontline regions affected by drone incursions, warning that alerts are disrupting schools and hurting hospitality and local economies. Drone Cooperation: Latvia and the Netherlands signed a letter of intent to use the Sēlija training range for drone exercises and testing, expanding joint capabilities. Weather Watch: Gusty northwesterly winds, rain and possible thunderstorms are expected across Latvia, with a yellow wind alert in Riga. Sports Spotlight: Latvia faces Norway in the IIHF World Championship quarterfinal in Switzerland, with live coverage available from LTV and LSM.

Baltic Security: Latvia is ramping up anti-drone defences along its Russia and Belarus border as drone incursions and airspace alerts keep rattling the region, with officials linking the disruptions to wider fears of escalation. NATO Readiness: NATO is preparing to speed up reinforcement for Latvia and Estonia, including plans for an additional corps and a German–Dutch command to bring “mass at speed” if war comes. EU Security Policy: EU leaders are pushing a unified approach to hybrid threats and drone alerts after Baltic incidents, with concerns Russia may test NATO unity. Local Impact: Latvia’s eastern Latgale tourism sector says cancellations are rising fast, with foreign bookings down sharply as visitors grow wary of drone-related alerts. Business & Tech: A Latvian firm, ERDA, has launched a real-time salary data platform ahead of EU pay transparency rules, while Grenardi Group raised €7m via a subordinated bond offering. Defense Industry: Norway has moved further in the Patria CAVS programme, signing a framework agreement for serial procurement of 6x6 armored vehicles. Culture & Media: Riga hosted Drone Summit 2026, highlighting Latvia’s growing role in drone-related innovation.

Counter-Drone Rollout: Latvia’s Army is set to field small, mobile counter-drone units “within days but definitely within weeks,” built around 3–4 soldiers per vehicle and Latvian interceptor UAS—aimed at a remote eastern border with Russia and Belarus. NATO Command Shift: Reuters reports NATO is planning a new command structure, including a second corps, to speed up reinforcement to Latvia and Estonia in a war scenario—Germany and the Netherlands’ corps would take charge of the Latvian-Estonian defense. Hybrid-Pressure Alarm: EU Commission President Ursula von der Leyen says Baltic drone alerts and disruptions are part of a deliberate Russian strategy to destabilise democracies, pushing for stronger counter-drone and early-warning systems plus a hybrid-threat protocol. Regional Context: Ukraine and Belarus tensions stay sharp, with Kyiv warning of “500 targets” if Lukashenko joins the war. Weather: Latvia braces for strong winds and rain, with gusts up to 19 m/s. Sports: Latvia’s hockey team locks in a quarter-final vs Norway after finishing third in its group.