AGP Executive Report

Rail Baltica Delivery: Rail Baltica Lithuania appoints a new CEO, tasking him with keeping the project on schedule as construction advances across 114 km and European-gauge track is already being laid. Hydrogen Infrastructure: Conexus Baltic Grid launches the first public consultation for the Nordic-Baltic Hydrogen Corridor, covering 1,773 land parcels and aiming for operations after 2033. Border Engineering: Latvia continues strengthening its eastern border, with extra works on a difficult 42 km stretch and completion planned through 2027 for the toughest segments. Industrial Growth: Rēzekne plans a new industrial park north of the city, with the municipality building roads and utilities and leasing plots to attract manufacturers. Logistics & Ports: Latvian crane maker RIKON ships fully assembled portal cranes from Riga to a specialist terminal in Turkey, cutting on-site erection time. Consumer & Services: After Pitbull’s Riga concert cancellation, Latvia’s economy minister says rescheduling is still possible; ticket refunds remain the legal fallback. Crypto & Regulation: Binance disappears from Google Play in some EU markets including Latvia, with the exchange pointing to Google policy updates tied to MiCA compliance. Energy Security: Estonia sends additional border guards to Latvia amid illegal migration pressure linked to Belarus and broader regional instability.

Hydrogen Infrastructure: Conexus Baltic Grid has opened an initial public consultation for the Nordic-Baltic Hydrogen Corridor, running 28 July–1 September 2026, covering about 1,773 land parcels on Latvia’s side (roughly 270–280 km), with construction pencilled in from around 2029 and operations after 2033. Border Security & Works: Latvia is extending eastern border infrastructure on the toughest 42 km stretches, with marshy sections needing drainage, access roads and pontoon crossings; most works target completion by end-2026, but a 12 km segment may run into 2027, while expropriation needs about €220k for 30 parcels. Industrial Development: Rēzekne plans a new industrial park north of the city on ~30 hectares, with the municipality building roads and utilities first and then leasing plots (2–4 ha) to investors via auctions. Logistics Deal: DHL has agreed to acquire Baltic parcel operator Venipak, expanding DHL eCommerce’s fully owned delivery footprint across Lithuania, Latvia and Estonia (subject to approvals). Defense Posture: Latvia’s defence minister says Russia can’t mount a direct conventional attack on NATO for now, though hybrid pressure—including weaponised migration—remains a concern. Energy Costs: The government is urged to prepare fuel-price support measures as volatility rises, following sharp Brent and gasoil jumps.

Border & Security Works: Latvia is extending infrastructure along the Latvia–Russia border, tackling swampy, hard-to-reach stretches on a 42 km segment; most fortifications will be handed over by year-end, but a 12 km section runs to 2027, with expropriation compensation funds needed for 30 land parcels. Logistics & Industry: DHL Group has agreed to acquire Baltic parcel operator Venipak, folding operations in Lithuania, Latvia and Estonia into DHL eCommerce (subject to approvals), aiming to strengthen last-mile delivery capacity as e-commerce grows. Energy & Costs: Latvia’s government is being urged to prepare fuel-price support measures as volatility rises; Brent and gasoil prices jumped sharply in late July, pushing the case for early contingency planning. Agriculture: Heavy rain is disrupting grain harvests, hitting Kurzeme hardest with flooded fields and washed-out roads, delaying rapeseed and grain logistics. Tech & Defense-Adjacent Manufacturing: RIKON shipped two fully assembled portal cranes from Riga to Turkey for a high-capacity terminal, with commissioning planned for this summer. EU Diplomacy: The EU summoned Russia’s chargé d’affaires after drone incidents in Romania and the destruction of Latvia’s honorary consulate in Ukraine. Media & Broadcast Tech: Channel 4 selected Encompass Digital Media to deliver cloud-native linear playout for all six channels from 2027, with services run from London and Riga. Telecom Strategy: The Trump administration launched a global 6G alliance including Latvia and other NATO partners to coordinate next-gen network development and limit China’s influence.

Fuel & Energy Watch: Latvia’s Economics Minister Viktors Valainis says rising volatility in global oil markets could push fuel prices higher, urging the government to line up funding and support measures early as Brent and gasoil jumped sharply this month. Logistics & E-commerce: DHL eCommerce has signed a definitive deal to acquire Venipak Group, giving DHL a fully owned Baltic parcel network across Latvia, Lithuania and Estonia (about 800 lockers and 25 terminals), pending regulators. Transport Infrastructure: Riga City Council has contracted SIA “Projekts 3” to reconstruct the Gaisa Bridge, with design due in 2027 and works targeted for completion by 2030, including safer pedestrian and cyclist routes. Robotics & Defence-Tech: XTEND says it has fully integrated Latvia-based Atlas, adding four XOS-powered ISR platforms and 4,200+ robotic systems, positioning Latvia as an EU manufacturing and engineering hub. Agriculture & Food Industry: Latvia’s ready-meal producer “Latvijas pārtikas ražotājs” starts a new Rumbula facility (about €5m) to double output; meanwhile, Vaiņodes Bekons is rebuilding its pig herd after ASF, with 1,000+ breeding gilts already introduced. Trade Links: Vietnam’s exports to Nordic markets rose strongly in H1 2026, with Latvia up 36.9%, and Nordic buyers are set to return to VIS 2026 in September. Security & Markets: Experts say there’s no immediate fuel crisis risk for the Baltics this winter, but replenishment could take longer as reserves hit multi-decade lows.

Logistics & Trade: DHL has agreed to acquire Lithuania-based Venipak, folding its parcel operations in Lithuania, Latvia and Estonia into DHL eCommerce and promising investment in lockers, sorting capacity and IT to help Baltic e-commerce expand internationally. Energy Infrastructure: The Nordic-Baltic Hydrogen Corridor says 87% of projected 2040 capacity is already backed by market interest, with Conexus Baltic Grid (Latvia) among the six transmission operators and demand expected to be led by Germany and Poland. Agribusiness: After an African swine fever cull, Vaiņodes Bekons is restarting: the monitoring period is complete, more than 1,000 breeding gilts have been introduced, and the herd is targeted to reach about 1,500 sows and gilts by year-end. Food Manufacturing: Ready-meals producer “Latvijas pārtikas ražotājs” has started building a new Rumbula facility (about €5m) to double output and add at least 30 jobs. Finance & Lending: Latvia’s central bank reports lending growth continues in H1 2026, with household loans up 10.6% and corporate loans up 14.4% year-on-year. Enforcement: Latvia’s Tax and Customs Police shut down an illegal Grobiņa cigarette factory capable of producing about 1.5m cigarettes per day, arresting 18 people. Tech & Robotics: XTEND says it has fully integrated Atlas, expanding its XOS-powered robotics ecosystem and strengthening Latvia’s role as a European manufacturing and engineering hub. Hydrogen/Power Systems (Regional): Baltic states are also moving to strengthen joint energy reserves and develop shared electricity system reserve capacity.

Banking Watch: Latvia’s central bank says loan growth kept rising in H1 2026 despite higher EURIBOR and uncertainty, with household lending up 10.6% y/y (to nearly €7.2bn) and mortgage lending up 9.5%, while corporate lending to non-financial firms rose 14.4% (to over €7.2bn). Crypto Regulation: ESMA added 15 crypto-asset service providers to the MiCA register, bringing the total to 309 licensed firms; Latvia and Bulgaria each saw two new listings. Defence & Security: EU foreign policy chief Kaja Kallas condemned Russian strikes that hit Ukraine’s Sloviansk and damaged Latvia’s honorary consulate, saying Brussels will summon Russia’s envoy and propose more sanctions aimed at the Russian military-industrial complex. Ukraine Support & Industry Links: Latvia’s reconstruction commissioner Juris Poikāns highlighted Riga’s long-term focus on military aid, energy security, and rebuilding infrastructure—areas tied closely to Ukraine’s defence and industrial recovery. Trade & Supply Chains: Nordic businesses are looking to Vietnam for deeper sourcing and logistics cooperation, building on VIS 2025 partnerships that expanded beyond trade into supply-chain development and investment.

Baltic Energy Security: Baltic energy ministers signed a joint declaration to build shared power system reserves, aiming to speed electricity restoration after infrastructure damage or security threats, with Latvia, Estonia and Lithuania coordinating spare equipment needs and pushing for EU funding. Anti-Drone Protection: The same deal flags growing hybrid risks from uncrewed aerial vehicles, with Latvia presenting a framework for unified anti-drone standards across critical energy sites. Pharma Manufacturing Expansion: Latvian company Olpha marked a major milestone with the topping-out of a new finished dosage form facility, investing EUR 5.84m to boost capacity up to 2.5x and prepare production of new medicines. Defense Industry Shockwaves: Ukraine’s strikes on Russian targets and Russia’s attacks on Ukraine continue to ripple through the region, including damage to Latvia’s honorary consulate in Sloviansk and EU moves to summon Russia’s envoy and tighten sanctions on the military-industrial complex. Agriculture & Food Prices: Livestock markets stayed under pressure as cattle futures slid, while egg prices stabilized after a historic retreat—watching how USDA data could shift sentiment. Riga Consumer Curbs: Latvia’s parliament approved a ban on importing certain books, toys and other consumer goods from Russia and Belarus, expanding restrictions beyond EU-sanctioned items. Baltic Ports & Trade Risk: NATO-linked maritime training in mine countermeasures included Latvia, underscoring how sea mines remain a persistent threat to shipping and regional trade.

Transport Policy: Latvia’s Transport Minister Rihards Kozlovskis says the country doesn’t need road signs pointing to Russia and Belarus, despite a ministry report proposing replacements by Sept. 30. Energy Security: Baltic energy ministers signed a joint declaration to create shared power system reserves to speed restoration after damage or security threats, and they pushed unified anti-drone protection standards for critical sites. Defense & Sanctions: EU foreign policy chief Kaja Kallas condemned Russian strikes that hit Ukraine’s Kyiv region and damaged Latvia’s honorary consulate in Sloviansk, announcing the EU will summon Russia’s envoy and propose new sanctions targeting the Russian military-industrial complex. Industrial Expansion: Latvian pharma company Olpha marked a major milestone with a new finished dosage form manufacturing facility, investing €5.84m to boost capacity up to 2.5x and start new medicine production. Manufacturing & Investment: Latvia plans full-cycle artillery rocket manufacturing with up to €90m US investment, with a memorandum signed to establish the plant. Pharma/Industry Watch: Cyber and compliance risks stayed in focus as Latvia-linked financial and regulatory stories highlighted scrutiny of cooperation and information disclosure.

Defence & sanctions: EU foreign chief Kaja Kallas condemned Russian strikes that hit Ukraine’s Kyiv region and damaged Latvia’s honorary consulate in Sloviansk, saying Brussels will summon Russia’s envoy and push new sanctions targeting the Russian military-industrial complex. Ukraine war’s industrial hit: Zelenskyy warned of a “massive” Russian attack within 48 hours after missile strikes killed at least 10 and injured around 100 at a defence-industry event near Kyiv; Ukraine also reported long-range drone and missile actions hitting Russian oil and logistics sites. Latvian manufacturing milestone: Olpha marked the topping-out of a new finished dosage form facility in Latvia, investing €5.84m to boost capacity up to 2.5x and start production of new medicines. Energy resilience: Baltic energy ministers signed a declaration to build shared power system reserves to speed restoration after damage or security threats, including anti-drone coordination. Defence industry expansion: Latvia’s Economics Minister signed a memorandum for a full-cycle artillery rocket manufacturing facility, with an estimated €70–90m investment. Agriculture & forestry pressure: Latvia’s wild berry and mushroom supplies are back after weak years, but volumes remain below past levels due to logging, weather and rural depopulation. Local policy: Latvia’s Saeima approved a ban on imports of certain books, newspapers and video games from Russia and Belarus, alongside other consumer goods.

Latvia–Ukraine Security & Diplomacy: EU foreign policy chief Kaja Kallas condemned Russia’s strike on Sloviansk that damaged Latvia’s honorary consulate, calling it deliberate and vowing to summon Russia’s envoy and propose new sanctions targeting the Russian military-industrial complex. Defense Industry Under Fire: Ukraine says a Russian missile strike hit an arms-industry event near Kyiv, killing at least 10 and injuring around 100, prompting criminal investigations into how such gatherings were organized and secured. Baltic Energy Resilience: Baltic energy ministers signed a declaration to build shared power system reserves, including spare grid equipment, and pushed anti-drone protection standards for critical energy sites. Pharma Manufacturing Milestone: Latvian firm Olpha marked the topping-out of a EUR 5.84m finished-dosage manufacturing expansion, aiming to boost capacity up to 2.5x and start new medicine production after commissioning. Trade & Sanctions Compliance: Latvia’s Saeima approved a ban on importing a broad range of Russian and Belarusian consumer goods (books, toys, video games, clothing and more) until 1 July 2027, citing propaganda risks and support for Ukraine. Maritime Tech Threats: The U.S. Coast Guard is seeking technology to detect and defeat uncrewed underwater vehicles, highlighting growing pressure on port and maritime infrastructure. Energy Storage Demand Signal: ONTRAS says the Nordic-Baltic Hydrogen Corridor’s market consultation shows strong demand, with projected 2040 usage reaching about 79.24 TWh annually.

Latvian Defence Industry: Latvia is moving toward full-cycle artillery rocket production after Economics Minister Viktors Valainis signed an MoU with a Latvian company linked to US-based Native Trading; the planned €70–90m facility would cover solid propellant, warhead filling, final assembly and testing, aiming for exports of at least €600m and creating around 150 jobs. Baltic Energy Security: Baltic energy ministers backed shared power system reserves to speed electricity restoration after damage or security threats, including anti-drone coordination for critical sites. Hydrogen Infrastructure: ONTRAS says the Nordic-Baltic Hydrogen Corridor has strong early market demand, projecting up to 79.24 TWh annually by 2040 and pushing developers toward letters of intent. Pharma Manufacturing: Olpha marked a major milestone with a new finished dosage form facility investment of €5.84m, targeting up to 2.5x capacity and new medicine launches. EU-Russia Trade & Propaganda: The Saeima approved Latvia’s ban on importing a range of Russian and Belarusian consumer goods (books, video games, toys, clothing, footwear and more) until 1 July 2027, while transit remains allowed. Ukraine War Spillover: EU foreign policy chief Kaja Kallas said the bloc will summon Russia’s envoy and propose further sanctions targeting Russia’s military-industrial complex after strikes that hit an arms event near Kyiv and also damaged Latvia’s honorary consulate in Sloviansk. Rail & Construction Costs: Latvian Railways’ temporary wooden passenger platforms are delayed by at least 18 months and may cost about 70% more than planned, raising questions about procurement and oversight. Cyber Preparedness: A new warning highlights that Latvia’s recent cyber incidents show the real risk is not just protection gaps, but slow detection and response across sectors.

Defense Industry Push: Latvia moves toward full-cycle artillery rocket production as Economics Minister Viktors Valainis signs an MoU for a €70–90 million plant, covering solid propellant, warhead filling, assembly and qualification testing. Construction & Manufacturing: Olpha marks a major milestone with the topping-out of a new finished dosage form facility, investing €5.84 million to raise capacity up to 2.5x and start new medicine production after commissioning. Cybersecurity Readiness: A new Latvian-focused warning says ransomware and major service disruption are now a real risk for any organization, citing recent attacks affecting LVM and Olpha. Trade & Sanctions: Latvia’s parliament approves a ban on importing Russian and Belarus-made books, toys, video games, clothing and other consumer goods until 1 July 2027, while transit to other EU states remains allowed. Energy Resilience: The Baltics agree to share and jointly procure critical electricity reserve equipment, with a framework for a regional reserve and faster restoration after outages. Agribusiness Tech: Eurostat data shows uneven precision farming adoption across the EU, with Cyprus lagging and Latvia among countries with high internet access on farms. Open Data for Business: A practical guide explains how EU open-license public datasets can be turned into products and services.

Baltic Energy Security: Latvia, Lithuania and Estonia agreed to jointly develop electricity reserve capacity, with transmission system operators set to assess needed spare equipment and apply for EU funding to speed restoration after failures. Nordic-Baltic Hydrogen Corridor: Demand for the planned NBHC is projected to hit 79.2 TWh by 2040, with commercial operations targeted around 2033 and Germany expected to be the main destination. Latvia Energy Transition Funding: The European Commission endorsed Latvia’s €617m Social Climate Plan (2026–2032) to support cleaner building renovations, sustainable transport and advice hubs for vulnerable households. Latvian Construction Scrutiny: The Pauls Stradiņš Hospital expansion faces rising costs and delays, with EU-financing eligibility and irregularities now clarified by Latvian authorities. Banking Deal Watch: OTP Bank agreed to acquire Baltic lender Luminor from Blackstone and DNB, reshaping ownership across Estonia, Latvia and Lithuania. Renewables Procurement Shift: Hybrid PPAs with battery storage are gaining ground in Europe despite a price premium, as solar PPA prices tick up after a year of declines. Riga Real Estate: Latio launched sales of investment apartments in Riga’s “Youston Co-Living” project, targeting yields up to 11.18%. Tourism Promotion: Latvia was nominated for major international tourism awards in the UK and Finland, boosting inbound visibility via LIAA campaigns.

Baltic Power Security: Latvia, Lithuania and Estonia signed a joint declaration to develop shared electricity system reserve capacity, with transmission system operators set to assess needed emergency equipment (transformers, poles, generators) and apply for EU funding to procure and maintain it. Energy Market Shift: Europe is moving toward hybrid power purchase agreements as solar prices tick up after a year of declines, with buyers increasingly paying a premium for added battery storage value and flexibility. EU Funding for Clean Transition: The European Commission endorsed Latvia’s €617m Social Climate Plan (2026–2032), targeting cleaner building renovations and sustainable transport support for vulnerable households, transport users and micro-enterprises. Cross-Border Electricity Planning: Lithuania began territorial planning for the 330 kV Varduva–Broceni transmission line to Latvia, aiming to strengthen interconnections and enable better use of cross-border renewable capacity. Logistics for SAF Exports: Allied Biofuels signed a logistics agreement with Latvia-based Pro Logistic Services to build multimodal rail-and-sea routes for future SAF/e-SAF exports from Uzbekistan to Europe and the UAE. Riga Real Estate Investment: Latio launched sales of furnished, leased studio apartments in Riga’s Youston Co-Living project, advertising yields up to 11.18% and 93% occupancy. Drone Tech in Latvia: Swiss startup nordfen chose Latvia to develop drone simulation technology, supported by LIAA for expansion and local operations. Industry Compliance Watch: The EC conditionally cleared the Paramount/WBD merger, with conditions tied to commitments after competition concerns in film distribution.

Baltic Power Security: Latvia, Lithuania and Estonia agreed to jointly develop power-system reserve capacities, with grid operators assessing needed transformers, generators and other assets and seeking EU funding to speed restoration after disruptions. Cross-Border Grid Build-Out: Lithuania approved preparations for the 330 kV Varduva–Broceni transmission line, starting territorial planning for a key reinforcement link with Latvia. Maritime Tech for Industry & Safety: Airbus Helicopters’ U030 Flexrotor entered operational service for EMSA maritime surveillance in the Baltic, supporting search-and-rescue, fisheries monitoring and environmental protection across Estonia, Latvia and Finland. SAF Logistics Deal: Allied Biofuels lined up export routes for sustainable aviation fuel and e-SAF from Uzbekistan to Europe and the UAE via rail and sea, using Latvia-based Pro Logistic Services for multimodal delivery. Agri-Production Expansion: Balticovo opened a EUR120m cage-free egg production complex in Iecava, Latvia, with modern biosecurity and egg-sorting infrastructure. Energy Demand Stress Abroad: Cyprus activated rotating 30-minute power cuts, with authorities publishing full affected-area groups. Local Industry & Environment: AJ Power Recycling and 3R are inviting businesses to dispose of used passenger tyres free of charge in Riga during 20–31 July. Flood Fallout: Heavy rains in Talsi uncovered an unexploded shell and damaged parts of the Talsi Regional Museum’s collections.

Energy Storage & Renewables: Ignitis Renewables has taken a final investment decision for the 107MW/215MWh Tume battery storage project in Tukums, integrated with its 174MW solar farm, with construction due to start in 2026 and operations in 2028 (about €35m). Finance for Industry: Saules BESS completed a €22m bond issue to build battery storage at eight operational solar plants, targeting 120MWh total capacity by end-2026, with bonds set for Nasdaq Riga First North. AI Infrastructure: Nordic Investment Bank signed a 4-year €22m InvestEU-backed loan for Helsinki AI infrastructure firm Verda (formerly DataCrunch), supporting expansion of on-demand high-performance computing. Modular Construction Deal: EcoModular announced a definitive combination agreement to bring its Latvia-based modular design and manufacturing into a wider Europe–UK–GCC delivery platform. Baltic Security & Critical Infrastructure: Latvia and Lithuania strengthened protection of energy and other critical sites amid Russian-provocation concerns, while Latvia’s transport sector also faces Rail Baltica management and funding pressure. Cross-border Tech & Drones: Swiss startup nordfen AG chose Latvia to develop drone simulation training tech with Drone Force – Europe, backed by LIAA support. Trade & Ports Pressure: An opinion piece warns Latvia’s ports and rail are losing ground while infrastructure funding gaps grow, raising risks for Latvian Railways and port maintenance. EU Enforcement: EPPO secured convictions in Italy for a plastic-products VAT fraud scheme tied to shell-company invoices, with prison terms and asset confiscations.