AGP Executive Report

Air Defence in Focus: NATO jets, including French Rafales, shot down a drone that entered Latvia’s airspace from Russia, triggering shelter warnings for eastern municipalities (Ludza, Balvi, Alūksne, later Rēzekne). The Latvian army said the breach was linked to Russian electronic warfare, and the alert was lifted after the intercept. Regional Security & NATO Tech: Latvia hosted a Drone Summit and NATO’s Rapid Adoption push is tied to faster capability rollouts; Canada is also in talks to join the NATO Innovation Fund. Local Governance & Daily Life: Rīga adjusted school catering procurement after companies challenged “green” criteria over organic supply and delivery distance. Public Health: Latvia’s State Blood Donor Centre warns of a critical shortage and urges donations. Sports: Latvia won the FIBA 3x3 World Cup 2026 in Warsaw; Karlis Lasmanis was MVP. Other: Latvia’s Justice Minister ordered a report into a juvenile death at Olaine Prison Hospital, and weather forecasts point to a rainy week.

Sports: Latvia capped a historic run at the FIBA 3x3 World Cup 2026 by winning the men’s title in Warsaw, beating Germany 20-15 in the final, while the USA took the women’s crown. Security & NATO: NATO is stepping up air and ground readiness in the region, with drills in Latvia and a new multinational combat group in Finland under NATO command, as Baltic and Nordic states treat the Russian threat as “imminent.” Local diplomacy & migration: Latvia says it won’t accept new migrants under the EU solidarity mechanism, choosing alternative support measures as a new migration solidarity framework starts in June. EU policy pressure: 11 EU countries, including Latvia, are pushing for tighter Schengen visa rules for Russians, citing rising visa issuance despite the war in Ukraine. Economy & finance in Riga: The EBRD annual meeting in Riga highlighted support for conflict-affected economies and deeper pan-Baltic capital market integration, alongside new financing deals such as a EUR 120m loan for Armenia’s MSMEs and green projects. Business/health: Latvia’s pharmaceutical exports to Russia remain significant, with industry arguing reorientation takes time. Culture: Eurovision Young Musicians 2026 brought a podium for Latvia, with Sonja Misiņa winning second place in Yerevan.

NATO & Security: NATO launched “Baltic Zenith 2026” air-defense drills in Latvia, with units from Latvia, Lithuania, Estonia, Canada and Sweden carrying out live-fire exercises near Yurmalciems to boost interoperability and allied air-defense readiness. Local Diplomacy & Finance: The EBRD annual meeting in Riga saw the UAE participate, with a focus on economic governance and resilience amid conflict-driven supply-chain and energy/food security pressures. Baltic Markets: The EBRD signed a memorandum with Estonia, Latvia and Lithuania to deepen a unified pan-Baltic capital market, aiming to remove remaining barriers and support a stronger bid for higher MSCI Emerging Market status. Energy Transition: Baltic energy experts warned that solar’s near-zero prices in some hours create a mismatch between generation and demand, pushing the case for more battery storage (BESS) and even attracting large data centers to anchor consumption. EU Policy: The European Commission is moving to tighten Schengen visa rules for Russian citizens next year after a coalition of 11 countries—including Latvia—called for stricter, more coordinated entry controls. Sports (Latvia): Latvia’s Sonja Misinina won second place at Eurovision Young Musicians, and Liepāja was confirmed as host for the 2027 edition.

Latvia’s NATO message: Foreign Minister Baiba Braže says the alliance must stay focused on collective defense and deterrence, backed by deployable forces, resilient supply chains, and investments in air defense and drones. EBRD in Riga: The EBRD annual meeting is driving new EU-linked support, including expanded InvestEU guarantees (€478.4m) and continued scaling for conflict-hit economies like Ukraine and the Middle East. Baltic energy storage push: Sunly and Rolls-Royce signed a deal for four battery energy storage systems in Latvia (490 MWh), aiming to solve the “realization” problem as solar output can flood the market at near-zero prices. Schengen visa tightening: The European Commission plans targeted restrictions for Russian citizens next year after pressure from EU states, including Latvia, over security risks from Russian tourism. Latvia election rules: Latvia’s pre-election campaign period for Saeima elections starts now; KNAB warns parties must label political ads and avoid hidden campaigning. Armenia trade support: EU leaders announced over €50m emergency help after Russia blocked Armenian exports, with shipments planned to reach Latvia. Sports (Latvia): Latvia beat New Zealand in the FIBA 3x3 World Cup play-in, setting up quarter-final action.

EBRD & EU Boost Riga Investment: The EBRD and the EU expanded InvestEU guarantees by up to €478.4mn to back higher-risk sustainable infrastructure, green projects and digitalisation, with extra €11.4mn for advisory support. Energy Storage Deal in Latvia: Sunly and Rolls-Royce Power Systems signed to build four large battery energy storage systems in Latvia totaling 490 MWh, with the first Valmiera hybrid site due in early 2027; Rolls-Royce will supply and oversee delivery, citing EU cybersecurity needs. EBRD Keeps Focus on Conflict Economies: EBRD chief Odile Renaud-Basso said the bank will keep scaling support for Ukraine and parts of the Middle East amid global instability. EU Visa Pressure on Russians: 11 EU states, including Latvia, urged tighter, more unified Schengen visa rules for Russian tourists, warning that leisure travel continues despite the war. Armenia Aid Linked to Export Blocks: EU Commission President Ursula von der Leyen announced over €50m in emergency support after Russia’s restrictions, including shipments of Armenian flowers to Latvia. FIBA 3x3 — Latvia Advances: Latvia beat New Zealand 21-19 on Day 5 to set up quarter-final action.

Riga & Latvia in focus: The EBRD is holding its Board of Governors meeting in Riga, with EU Economy Commissioner Valdis Dombrovskis saying discussions will center on support for Ukraine and Moldova and how the bank expands globally, with more than 2,000 participants expected. Energy & climate: EBRD approved a €26m loan to Next Biogas (Host Group) to convert a plant in Lēdurga into a major biomethane facility, while Rolls-Royce Power Systems signed a 490 MWh Latvia battery storage deal with Sunly, citing strict EU cybersecurity rules. Security & defence: Latvia and Ukraine are preparing a long-term defence cooperation deal focused on drone tech, air defence, cybersecurity and defence industry integration. EU travel rules: The European Commission is finalizing tighter visa measures for Russian nationals from January, after backlash over uneven Schengen implementation. Local life: Swimming is banned at Kolka after faecal contamination was detected, and a false fire alarm at Pauls Stradiņš Hospital sparked confusion among patients. Business & transport: airBaltic plans to resume Riga–Tel Aviv flights from 1 July (three per week), and Latvia’s central bank approved LAU Infra Group’s IPO starting June 10.

EU-Armenia Aid: EU Commission President Ursula von der Leyen says the bloc is preparing a €50m+ assistance package for Armenia after Russia’s trade restrictions, including immediate money and steps to expand export access—while a first shipment of Armenian roses (5,500) is headed to Latvia. NATO Presence in Latgale: NATO’s multinational brigade has deployed troops in Daugavpils for the first time, expanding beyond Ādaži as part of deterrence and training with Latvian forces. Baltic Security Drills: “BALTOPS 26” is underway in the Baltic Sea region, with allied training across sea, air, land, cyberspace and underwater tasks, including low-flying fighter activity in Kurzeme. Information Space Watch: Latvia’s media regulator leadership has changed: Aurēlija Ieva Druviete confirmed as new NEPLP chair, with information-space security named a priority. Russian “Lawfare” Alert: Latvia’s security service SAB publishes a new report warning Russia plans to intensify lawfare to pressure Western leaders and NATO. Riga Airport Pressure: Riga Airport expects 7.1–7.2m passengers, but warns growth plans face fuel-price shocks and the continued closure of Russian, Ukrainian and Belarusian markets. Weather: Rain and thunderstorms hit Latvia through Saturday, with Sunday turning mostly sunny. Local Culture: Riga Art Week kicks off Latvia’s first Young Art Auction, featuring 26 artists under 40.

EU Visa Crackdown: Sweden and 10 other countries, including Latvia, are pushing the EU to tighten tourist visa rules for Russians, saying “no more shopping weekends” while Ukrainians fight and die. Latvian Energy Aid to Ukraine: Latvenergo says it will donate decommissioned equipment from Riga’s TEC-2 to help rebuild Ukraine’s energy infrastructure, with approvals now needed before transit. Latvia’s Security Reality: Latgale is adapting to repeated drone air-raid alerts that have disrupted exams and events, raising fears of spillover from the war. Baltic Power Push: Sunly opened a 54 MW solar park near Valmiera as part of a planned hybrid project worth up to EUR 100 million, with battery storage partnerships in the pipeline. Economy Watch: Latvia’s industrial production rose 7.0% year-on-year in April, while the State Treasury raised EUR 1 billion via a seven-year sustainable bond. Sports & Local Life: Falkirk signed Latvia defender Deniss Melniks; and Latvia is drawn against Italy in the BetVictor World Cup of Darts group stage.

UN Security Council: The UN General Assembly has elected Austria, Kyrgyzstan, Portugal, Trinidad and Tobago and Zimbabwe as new non-permanent members for 2027–28, while Germany failed to win a seat; the five will take over from Denmark, Greece, Pakistan, Panama and Somalia on Jan 1, 2027. Latvia’s Defence: Latvia’s new Defence Minister Raivis Melnis says drones entering Latvian airspace must be intercepted and destroyed, stressing Latvia needs a full network of surveillance and interception, not just one counter-drone purchase. Baltic Security Cooperation: Ukraine says it will send counter-drone experts to Latvia, Lithuania, Estonia and Romania to share its experience and interceptor know-how. NATO in the Region: NATO launched the scaled-down BALTOPS naval exercise in the Baltic Sea near Russia’s borders, with participation including Latvia. Weather: Summer warmth is returning to Latvia, with temperatures up to +26°C, but rain and thunderstorms are expected to increase toward the weekend. Riga Sports/International: China’s women at the FIBA 3x3 World Cup finished second in their pool after a narrow loss to Latvia, earning a play-in spot.

Ukraine–Baltics drone defence: President Volodymyr Zelensky says Ukraine will send drone countermeasure instructors to Latvia, Lithuania, Estonia and Romania, training experts and sharing interceptor know-how with dates already set. Local security industry: Latvia and Finland have agreed to jointly develop a new protected military vehicle system (CPV), with a three-year plan starting from a signed agreement in Tampere. Riga’s defence spotlight: The Riga-hosted Drone Summit drew major and smaller firms and highlighted the real-world challenge of reliably stopping drones, with NATO-range tests showing both hits and misses. Regional airspace pressure: Ukraine’s drone strikes on St Petersburg disrupted flights and triggered air-raid alerts reported in nearby Latvia and Estonia, underscoring how Baltic security remains tightly linked to the war. UN diplomacy: Latvia will continue serving on the UN Security Council until end-2027, as Austria, Kyrgyzstan, Portugal, Trinidad and Tobago and Zimbabwe were elected for new terms starting 2027. Business and travel: airBaltic resumes a seasonal Riga–Aberdeen link, and Ammunity in Latvia has a new CEO, Kaspars Pollaks, from June 1. Public life: Daugavpils city festival (June 5–7) brings extra public transport and free rides on June 6–7.

Rail Baltica: Latvia’s new government faces urgent, multi-billion-euro decisions on Rail Baltica financing and the 2030 completion target, with RB Rail warning that delays could add about €200m per year and pushing options like a PPP for the northern mainline plus use of the EU SAFE instrument. Aviation & security: Latvia and Estonia issued drone-related air threat warnings overnight; in Latvia, an Alūksne-area alert was later lifted, while Estonia said no drones reached its airspace after verification. Air war spillover: Ukraine struck targets in St. Petersburg ahead of Putin’s economic forum, with Russian officials citing damage and injuries and local reports pointing to attacks near major port infrastructure. Energy: A new hybrid wind/solar-plus-storage project opened in Līvāni, investing €3.4m in a solar park and battery system to boost energy security and cut reliance on imports. Economy & politics: Latvia’s PM Andris Kulbergs said airBaltic can’t rely on taxpayers alone and that a summer decision is needed, stressing private capital and reviewing the airline’s business plan after the first state-loan repayment. Local environment: Baldone moved to shut down a quail farm after residents complained about persistent foul odours. Weather: Warm conditions continue in Latvia with thunderstorms possible, including in Vidzeme and northern Latgale.

Ukraine-Russia War: Kyiv says Russia is “losing on the battlefield” after a major overnight strike on Ukrainian cities, with officials reporting dozens of residential hits and heavy use of drones and missiles. Latvia-Ukraine Energy Aid: Latvian PM Andris Kulbergs met Ukraine’s Deputy PM Yuliia Svyrydenko on speeding up equipment transfers from Latvian CHPPs to help restore Ukrainian energy facilities ahead of the next heating season. Diplomacy: Latvia’s President Edgars Rinkēvičs told Ukraine’s PM that Ukraine’s EU accession is in Latvia’s and Europe’s security interests, while Latvia’s FM Baiba Braže discussed Armenia-EU cooperation and hybrid actions with her Armenian counterpart. Riga & Latvia Life: One emergency siren failed during Tuesday’s nationwide test; Riga’s Staro Rīga light festival will add accessibility steps for people with visual impairments. Culture & Business: Serbia’s first resident ambassador in Riga, Milena Mitic, assumed her post; Riga’s Riga Photography Biennial will feature Ieva Epnere’s solo exhibition. Weather: Meteorological summer began in Latvia on June 1 as temperatures stayed above +15°C.

Local Education & Safety: Latvia’s KiVa anti-bullying conference is set for Rīga, bringing together educators and policymakers from Finland, the UK, Norway and the Czech Republic, with parts streamed live and workshops planned. Culture & Tickets: Liepāja’s European Capital of Culture 2027 highlight “Sun & Sea” starts ticket sales for performances at Lielais dzintars in April 2027. Security & Daily Life in Latgale: Drone alerts in eastern Latgale have not triggered panic or mass departures, though residents are adjusting routines and some are growing more cautious. Infrastructure Watch: RB Rail says Latvia’s Rail Baltica mainline contract is among the most expensive in the Baltics, with unit costs for embankment work far higher than Estonia and Lithuania, raising questions about redesign or renegotiation. Defense Cooperation: Latvia and Ukraine plan to deepen drone-technology and energy-security cooperation, including sending Ukrainian specialists to help Latvia build layered counter-drone defenses. Science Policy: Two Latvian state research institutes are merging into a new National Research and Innovation Institute to speed drug, diagnostics and vaccine development. Weather: Summer-like warmth returns, with temperatures climbing up to +26°C later this week. Civic Debate: A public initiative on limited bear hunting is gaining attention as Latvia’s brown bear population rises. Sports (Riga-linked): Norway beat Latvia 2-0 at the ice hockey worlds, with Latvian fans likely watching the tournament closely.

Latvia-Ukraine Defence Ties: Latvia and Ukraine agreed to deepen cooperation on drone technology and energy security, with plans for a bilateral drone agreement and Ukraine sending counter-drone specialists to help Latvia build a layered air-defence plan. Energy Support: Latvia also pledged to donate a thermal power plant generating unit to strengthen Ukraine’s energy infrastructure. Airspace Incidents Fallout: The new push comes amid past drone incursions into Latvian airspace that have already triggered political turmoil. Economy Watch: Latvia’s labour market data show unemployment at 6.5% in April, above the EU and eurozone averages, while average wages and salaries after taxes in Q1 were reported at €1,364. EU Rules Pressure: The European Commission opened infringement procedures against Latvia and 19 other EU states over delays in transposing EU green claims and sustainability label rules. Local Life: A bear was escorted out of Jēkabpils after wandering through the city, with authorities using a closed road corridor and drones with infrared cameras.

Riga Heating Costs Watch: Riga mayor Viesturs Kleinbergs says Latvenergo plans to raise heat prices for TEC-1/TEC-2, which could push up the tariff residents pay via Rīgas siltums, with the city seeking clarity and possible majority control talks. Baltic Drone Tensions: Experts say rising Ukrainian drone incursions into Estonia, Latvia and Lithuania are sparking debate over whether Russia is rerouting drones via electronic warfare or whether they’re autonomous deviations—while Zelenskyy frames such incidents as political pressure and says Ukraine tries to intercept them. Energy Prices: Electricity prices in the Baltics remain volatile, with Estonia’s Monday evening peak reported near €385/MWh and Latvia/Lithuania averaging higher. Border Security Upgrade: Estonia is installing stationary anti-drone monitoring devices along the Russia border, aiming to cover the full line by year-end. EU Court Threat: Russia says it will take Latvia, Lithuania and Estonia to the UN’s top court over alleged discrimination against Russian speakers. Sports & Local Pride: Finland won the IIHF World Championship in extra time, with Konsta Helenius scoring the deciding goal; Riga readers also get a reminder that Latvia’s presence in the tournament remains in the spotlight.

Drone Pressure on NATO’s Doorstep: Ukraine’s Zelenskyy says Russian drone incidents are meant as political pressure, and that Ukraine tries to intercept drones even when they head toward Romania, Moldova, Poland and the Baltics, including Latvia. Baltic Air-Defence Build-Up: Estonia is installing stationary anti-drone detection devices along its Russia border, starting at key border sections near the Latvia junction, with mobile systems used where fixed gear isn’t ready yet. Latvia in the Drone-Response Loop: A Ukrainian defense official warns Western allies to keep future drone command centers mobile and ideally underground, because Russia hunts their locations in a cat-and-mouse fight. Diplomatic Tensions: Russia says it will take Latvia, Lithuania and Estonia to the UN’s top court over alleged crackdowns on Russian-speakers. Local Economy Watch: Latvia’s agriculture still employs a large share of workers, and Eurostat data also highlights Latvia’s high share of women in science and technology jobs.