AGP Executive Report

CSDD Cyber Fallout: Latvia’s Road Traffic Safety Directorate (CSDD) crisis deepened as the CSDD supervisory board resigned and the transport minister called for the management board to step down, while an accelerated probe targets the August cyberattack and the massive data breach affecting 1.2 million people. State Governance Clash: Prime Minister Andris Kulbergs hit the “political retirement home” model at state-owned firms, pointing to CSDD leadership resignations and demanding a full overhaul of how such companies are run. airBaltic Support: A parliamentary committee backed a draft law that could let the state take part in airBaltic financial stabilisation, including up to €30m in interim financing bonds and a €50m bond-to-equity conversion. Border Security: Latvia is tightening border measures amid migrant pressure and drone risks linked to Russia and Belarus, with Operation “Vilkatis” targeting illegal border crossers. Affordable Housing in Rīga: By 2030, 732 affordable rental homes are planned in Rīga under a public-private partnership programme aimed at young families and professionals. Transport Pressure: Rail freight volumes fell nearly 20% in early 2026, with Russian tariff changes worsening a decade-long decline. Consumer Credit Rules: Latvia lifted the long-standing ban on consumer credit advertising, replacing it with stricter content requirements and mandatory warnings. Weather: Brief showers and possible thunderstorms are expected, with highs around +18 to +22°C.

Cybersecurity in Focus: Latvia’s Road Traffic Safety Directorate (CSDD) says a major cyberattack stole personal data of 1.2 million people and information tied to about 200,000 companies, including names, payment details, vehicle licence plates and addresses. Prime Minister Andris Kulbergs ordered an investigation and criticized CSDD management for notifying him with a delay, warning the breach could be used for fraud. International Cooperation: Latvia will negotiate with Moldova on recognizing and converting driving licences, based on an intergovernmental deal signed in Riga in 2025. EU Funding Push: Latvia is seeking €7 billion from the EU’s next budget to cover higher defence spending and the economic fallout of cutting ties with Russia, with Brussels reportedly leaning toward loans rather than grants. Culture & Film: Viesturs Kairišs’ biographical film “Ulya / Uļa” has been selected as Latvia’s Oscar candidate for Best International Feature Film. Public Health: SPKC urges parents not to delay HPV vaccinations ahead of the school year, citing vaccination coverage gaps for children born in 2012–2013. Sports: Latvia beat Romania 91-46 to reach the quarter-finals, led by Nadine Graudina’s five three-pointers.

airBaltic Crisis Talks: Latvia’s national airline is heading into a critical week as PM Andris Kulbergs warns this is the “last chance” to save airBaltic from insolvency, with creditors weighing interest deferrals and the carrier seeking bridge financing, fresh equity, and bond concessions. Border Security Upgrade: President Edgars Rinkēvičs says Latvia has made major progress on the Latvia–Belarus border—more sensors, CCTV, and fencing—while stressing staffing remains a serious problem. Hybrid War Warning: Rinkēvičs also says Russia’s hybrid war is already happening now, with Latvia investigating sabotage, provocation, and espionage cases tied to the broader threat picture. Court Update: Riga City Court kept detention measures in place for former Riga City Council member Aleksejs Rosļikovs, with an arrest order still active as he is believed to be in Belarus. Education Funding: Eurostat data shows Latvia spends less on education than the EU average, at 4.34% of GDP in 2023. Energy & Industry: Solar stayed Latvia’s biggest electricity source in July, while Orkla Latvija plans a €5.4m upgrade to expand Spilva sauce production in Babīte. Culture & Media: Broadcasters and film producers urge the Saeima to halt amendments that would require dubbing more foreign-language TV content in Latvian. Public Safety: CSDD will broadcast a seatbelt reminder signal across radio stations and petrol stations to push down serious road crashes linked to unfastened belts. Sports: Latvia opens EuroVolley Women 2026 against Türkiye in Istanbul as the tournament begins with 24 teams across four host countries.

Border Security Push: President Edgars Rinkēvičs visited Latvia’s eastern border and called for up to 200 more State Border Guard personnel, saying fences and sensors aren’t enough without fast human response to possible sabotage and subversion. EU Funding for Defence: Prime Minister Andris Kulbergs urged the EU to provide €7bn for Latvia’s anti-Russia costs, citing lost trade and rising defence spending; he frames Latvia as borrowing to fund security for “the whole of Europe.” Drone Threats in the Region: Latvia says a drone shot down on Aug 14 came from Belarus, and Defence Minister Raivis Melnis warned risks will persist while Ukraine strikes Russia and Russia uses countermeasures. airBaltic Financial Update: Bondholders approved capitalising interest payments on €380m bonds, easing cash pressure as the airline pursues financial viability. Local Governance & Economy: Latvia’s central bank published its English Financial Stability Report, warning that delayed improvements in the return on public spending and rising debt increase risks for fiscal and tax predictability. Culture & Community: Vilnius hosted the 5th Corgi Race with 150 dogs from nine countries, including Latvia.

Drone & Airspace Security: Latvia’s Defence Minister Raivis Melnis says the Aug 14 drone shot down near Balvi entered Latvian airspace from Belarus, with the origin still not officially confirmed; he stressed drones will keep being shot down and noted Latvia lacks enough counter-drone systems and border radar, though Latvian-made equipment is planned to be fully deployed along the Russia/Belarus border by end-September. airBaltic Restructuring: The Latvian Aviation Trade Union says airBaltic could face layoffs and is urging social guarantees and proper consultation, warning that meaningful talks require full, timely access to the business plan. Forestry Policy Fight: The Progressives oppose proposed amendments that could simplify and speed up tree felling rules, arguing forests may be logged earlier and more extensively. Economy & EU Money: Finance Minister talks with the Bank of Latvia on the next EU funds period (2028–2034), with Latvia receiving about €9.3bn in an indicative envelope and sector proposals worth over €35bn. Cost of Living: Latvia’s average monthly household spending hit €619 per person in 2025, with the highest costs in Riga region (€750) and the lowest in Latgale (€446). Cyber & Scams: Swedbank customers report new scam emails urging “bank detail updates,” and Latvian State Forests blamed a miscommunication for a recent cyber attack. Culture: The BFI London Film Festival unveiled its 70th Official Competition lineup, including films by Hirokazu Kore-eda, Carol Morley and Lili Horvát.

Riga 825th Anniversary: Riga marked its 825th birthday with a packed weekend of events, including a crafts market in Dome Square and a big Saturday concert, “My Musical Score Riga,” blending music, dance and city stories across eras. Baltic Air Security: NATO jets shot down a drone that entered Latvian airspace, with Latvia saying it was a potential danger linked to Russian electronic warfare; similar drone incidents are also reported across the region. Ukraine-Russia Strikes: Waves of drones and missiles killed at least 19 people in Russia and Ukraine, hitting civilian and industrial sites including a steel plant in Kryvyi Rih. Science & Education Funding: MikroTik donated about €799,000 to the University of Latvia Foundation, backing research grants and scholarships. Local Mobility Deal: Latvia and Moldova are moving toward easier driving licence exchanges for Moldovan residents in Latvia without extra exams. Sports & Culture: Riga’s U-16 women’s basketball team won European gold; and Latvia’s Riga FC clinched the Latvian Women’s Premier League with a perfect 21-0 run.

Riga 825th Birthday: Rīga’s 825th anniversary concert “My Musical Score Rīga” is set for Saturday night, with live coverage on LTV1 and online at LSM.lv and REplay.lv. Baltic Security Tensions: Lithuania’s PM says the NATO-shootdown of a drone over Latvia could not be ruled out as a “false flag” until wreckage is found, while Latvia’s military says the interception was due to potential danger. Ukraine War Spillover: Ukraine’s plan to transfer captured Russian T-72 tanks to museums in Lithuania, Latvia, Estonia, Denmark and the Netherlands is moving forward as a documentation effort. Sports (Latvia): Latvia’s U-16 team won European basketball gold in Romania, and Riga FC’s women’s side clinched the Latvian Premier League title with a perfect 21-0 record. Local Incident: A small flying craft reportedly crashed into the Gulf of Riga near Jūrmala; one person was rescued.

Drone incident in Latvia: NATO Baltic Air Policing jets shot down a drone that entered Latvian airspace near Rugāji parish (Balvi district). Authorities later carried out controlled explosions after the wreckage was found, and residents were told to report any extra debris. Cross-border tensions: Lithuania’s PM Mindaugas Sinkevičius said a “false flag” scenario can’t be ruled out, but stressed there’s no proof yet—while Latvia’s side links similar intrusions to Russian electronic interference. Maritime alert near Jūrmala: A small flying craft reportedly crashed into the Gulf of Riga; one person was rescued from the water and no oil leaks were found. Ukraine war documentation: Ukraine approved a plan to transfer captured/destroyed Russian T-72 tanks to museums in Lithuania, Latvia, Estonia, Denmark and the Netherlands. Sports (Riga/LV): Riga FC won the Latvian Women’s Premier League with a perfect 21-0-0 record, while Latvia’s U-16 basketball team won European gold in Romania.

Baltic Air Policing: NATO jets shot down a foreign drone that entered Latvian airspace near the Russian border, destroying it over the Balvi region (Rugāji area) after air alerts in several eastern municipalities; Latvia’s defence ministry said the incursion was linked to Russian electromagnetic warfare, and debris searches are ongoing with no reported casualties. Counter-Drone Drills: During NATO Baltic Trust 26 at Sēlija, Latvia tested counter-drone systems including interceptor drones, with about 650 participants and industry teams working together to detect, track and neutralize UAV threats. Ukraine War Spillover: Ukraine approved a plan to transfer captured, destroyed Russian T-72 tanks to museums in Lithuania, Latvia, Estonia, Denmark and the Netherlands, aiming to document the war’s impact abroad. Border Security: Latvia and Lithuania reported a migrant tunnel discovered near the Belarus border, with Belarus dismissing intelligence about tunnel construction; authorities say people-smuggling routes are adapting fast. Local Life & Safety: Residents were repeatedly warned during the drone incident to stay indoors and away from windows, and to report any additional debris to police. Diplomatic Ripples: Latvia’s foreign ministry joined global greetings for India’s 80th Independence Day, as more countries highlighted strategic ties with New Delhi.

Counter-Drone Drills in Latvia: NATO Baltic Trust 26 tested counter-drone systems at the Sēlija training ground, with about 650 participants and industry teams trialing how detection and drone interception can be handed to private contractors. Drone Incursion Near Russia Border: NATO jets shot down a foreign drone over Latvia’s Balvi region after an air-threat alert; Latvia said it entered due to Russian electronic warfare, while Finland temporarily restricted parts of the Baltic Sea. Ust-Luga Port Fire After Drone Attack: Reuters reports a blaze at Russia’s Baltic Sea energy export port of Ust-Luga after an aerial attack, with dozens of drones downed in the region. Trophy Tanks for Museums: Ukraine approved transferring captured Russian T-72 tanks to museums in Lithuania, Latvia, Estonia, Denmark and the Netherlands for public display. Border Security: Migrant Tunnel Found: Latvia and Lithuania say a tunnel exit near the Belarus border was discovered after migrants were spotted; authorities warn the tunnel trend is spreading despite Minsk’s denials. Latvia Business: AS Recipe Plus is investing €20m in a new Riga pharmaceutical supply centre, aiming to finish in spring 2027.

Baltic Air Policing: NATO jets scrambled and shot down a foreign drone that entered Latvian airspace over Balvi early Friday, with Latvia saying it was likely pushed in by Russian electronic warfare; air alerts in several eastern municipalities were lifted after the incident and debris checks are under way. Regional Security: The drone episode comes as Finland temporarily restricted parts of its eastern air and maritime space as a precaution, and it follows repeated drone incursions across the Baltics. Ukraine War Spillover: The Latvian drone alert is linked to wider strikes in the region, including reports of fires and attacks around Russia’s Baltic oil port of Ust-Luga. Energy & Industry: Construction has started on a 117MW wind farm in Valmiera region, targeting operations in 2028. Healthcare Infrastructure: AS Recipe Plus is investing EUR 20 million in a new Riga medicine logistics centre, aiming for completion in spring 2027. Local Culture: A centenary exhibition for Raimonds Staprāns opens in Riga, running until January 2027.

Security at Riga Airport: Customs offences are up at Rīga Airport, with more cases involving cigarettes and alcohol over limits, and more drug-smuggling attempts (26 so far this year vs 13 last year). Cybercrime: Latvia’s Road Traffic Safety Directorate (CSDD) says it suffered a cyber attack over the weekend and attackers accessed historical payment receipt data tied to personal details; usernames and passwords were not affected. Defense & region: Lithuania approved a new border defensive engineering plan, including a 20-metre counter-mobility strip and wider zones in key areas, plus more obstacle parks by 2028. Migration pressure: Lithuania sent 20 border guards to assist Latvia as irregular crossings from Belarus remain high. Economy & daily life: Eurostat shows Latvia is no longer among the cheapest EU states for essentials like food, clothing, and alcohol/tobacco, even as overall prices stay below the EU average. Transport: airBaltic says it will cut its A220 fleet to about 36 aircraft by end-2026 as it seeks financial stability. Local life: Rīga will pedestrianise Alberta and parts of Antonijas Street on weekends from 14 Aug to 20 Sep.

Saeima allowances: A new ManaBalss.lv petition wants to scrap MPs’ transport and rent compensation, arguing healthcare, social care and teachers already pay commuting and housing costs themselves; it needs 10,000 signatures and has drawn 4,300 so far. Ukrainian support in Riga: Latvia is launching a charity drive, “United with Ukraine in Thought and Action!”, to fund medical and psychological rehabilitation for wounded Ukrainian defenders, while Riga East Hospital received another group of injured soldiers this week. Baltic security planning: Lithuania is preparing a 20-metre-wide anti-mobility trench network along borders with Kaliningrad and Belarus as part of the wider Baltic Defence Line. Border crackdown: Latvia says it has found its first documented migrant tunnel under the Belarus border, after 15 people were intercepted. Rail Baltica costs: Transport officials say the first Rail Baltica phase should stay within current scope, with possible requirement cuts and a “Riga loop” review. airBaltic pressure: The airline unveiled a new business plan to focus on Riga and shrink its A220 fleet; bond prices have dropped sharply and a key vote is set for 17 August. Competition fine: Latvia’s forestry state company LVM was fined about €7.86m for giving long-term logging partners unjustified advantages. Everyday costs: Eurostat shows Latvia is no longer among the cheapest EU countries for essentials like food, clothing and alcohol, even as overall prices remain below the EU average. Weather: An anticyclone brings drier, sunnier conditions after a changeable week.

Baltic Security: Latvia’s border guards say they found a newly used underground tunnel on the Belarus border, with 15 people detained while trying to cross illegally; all were returned to Belarus. Air Defense Procurement: Latvia’s PM Andris Kulbergs says anti-drone systems were bought without the necessary ammunition—raising questions about readiness after past drone incursions. Rail Baltica Costs: Latvia is not shortening the first Rail Baltica phase route for now, but the government plans a major review to cut technical requirements and costs after concluding the current model is unsustainable. airBaltic Restructure: The airline is shrinking its A220 fleet and concentrating routes in Riga, seeking €225m bridge financing as it adjusts to demand and engine supply issues. Riga Tourism & Transport: Riga’s Freeport has started partial demolition of the ED dam to expand cruise-ship access near the city centre, with work due to finish before next cruise season. Riga Public Services: Students can apply for the Riga Student Card by Aug 25 to get it at school in September, with later applications delivered by mid-September.

airBaltic Reshuffle: The airline says war-linked demand shifts and Pratt & Whitney engine issues have forced a major plan change: it will cut its Airbus A220-300 fleet by about a third (from 54 to around 36 by end-2026) and focus routes from Riga, while seeking €225m bridge financing. Rīga Mobility for Students: Parents are reminded to apply by Aug 25 for the Student Card via eRīga (photo upload required), so it’s ready for the start of the school year and also works as public transport access. Rīga Cruise Boost: Work has started on partial demolition of the ED dam at the Port of Riga, freeing up space so more cruise ships can dock closer to the city centre. Border Security: Latvia launched coordinated “Vilkatis/Werewolf” operations along the Belarus border to curb illegal migration, running until end of August with intelligence-sharing and support from police, border guards and the armed forces. Energy Costs Watch: Economist Kārlis Purgailis warns Latvia’s gas price shock will hit consumer prices with a delay, but will still feed into housing, utilities, and then broader prices. Public Services & Safety: The Justice Ministry proposes “pay sooner, pay less” discounts for some administrative fines, plus easier instalments for hardship. Health & Scams: England’s NHS reports 100,000+ hepatitis C patients treated since 2015; meanwhile, Telegram scams are getting harder to spot, with tips on staying safe. Local Life: A late Old Town traffic closure caused chaos after the 11 November Embankment was shut without timely notice. Culture & Tourism: Riga’s 825th birthday program includes a “sweet stroll” featuring the Vecrīga cake map, plus an Auto Union Type C parade drive tied to motorsport history. International: Latvia joined a UN Security Council push highlighting UN estimates of 16,000+ Ukrainian civilians still detained by Russia, with widespread torture and ill-treatment reported.

Border Security Crackdown: Latvia has launched Operation “Vilkatis” (Werewolf) to curb illegal migration from Belarus, with the Crisis Management Center coordinating Interior Ministry services and the National Armed Forces, plus wider use of drones, helicopters and aircraft. Tunnel Discovery: Authorities also found a migrant tunnel near the Silene border crossing, detaining 15 people who allegedly crossed via the underground route—Latvia says it’s the first such case in the country. airBaltic Rescue Plan: The government says airBaltic’s situation is “very serious” and the airline is moving to “financial stability first, growth second,” cutting its A220 fleet and seeking €225m interim financing. NATO False-Flag Fears: Reuters reports Latvia and neighbors are tightening protection of critical infrastructure amid warnings about possible Russian sabotage or false-flag attacks. Defense Tech in Latvia: A Ukrainian drone-detection system, Zvook, tested mobile passive acoustic sensors with Latvian forces during BATT26, with results described as working under real conditions. Health Update: Latvia will move the second measles-mumps-rubella vaccine dose to age four (from seven) due to measles risk. Riga Sports: Latvia’s men’s basketball team begins World Cup qualifier preparations, with several top players absent from the current squad.