AGP Executive Report

Drone & Airspace Security: Latvia’s President and PM say NATO fighter jets can shoot down drones, but it’s only a temporary fix while Latvia builds its own counter-drone capabilities; NATO diplomats also discussed speeding up drone-response projects for the July summit. Ukraine–Latvia Defense Tech: Ukraine signed a drone deal with Latvia after Zelensky met Latvian PM Andris Kulbergs in Tallinn, while Estonia opted for a declaration without a drone agreement. Regional Deterrence Moves: Canada-led NATO Multinational Brigade – Latvia held a Transfer of Command at Ādaži, with command moving to a new Canadian colonel. Local Governance & Infrastructure: Riga Central Market’s meat pavilion was ordered to close immediately after an inspection by the State Construction Control Bureau, with the city now assessing roof reinforcement funding. Public Safety & Tourism Impact: Eastern Latvia’s Blue Lakes tourism operators say stray Ukrainian drones and shelter alerts are driving visitors away, hitting hundreds of small businesses. International Diplomacy: 22 countries including Latvia condemned Iran’s “lethal plotting” and malign actions in Europe, North America and Australia. Arts & Culture: Latvian rock musician Johnny Salamander (Jānis Gūža) died at 60.

Drone Diplomacy & Air Safety: Ukraine’s Zelenskyy met Nordic-Baltic leaders in Tallinn and pushed a practical fix for drone spillovers, saying Russia deliberately redirects drones to blame Kyiv; Latvia’s PM Andris Kulbergs signed a drone deal with Ukraine and a defense cooperation agreement to share counter-drone know-how and strengthen airspace protection. NATO Readiness in the Region: NATO began operations of Forward Land Forces Finland in Finland and Sweden, aiming to bolster the High North and northeastern flank as Russia’s activity continues. Baltic Airspace Incident: Latvia confirmed French fighter jets shot down a drone that entered its airspace, triggering phone alerts in eastern municipalities before the all-clear. Local Impact on Tourism: Reuters reports Latvian “Land of Blue Lakes” guesthouses and small businesses are losing bookings as drone alerts keep visitors away. Weather Watch: A rain system moves west-to-east with thunderstorms and heavier downpours expected, especially in eastern Latvia. EU Security Context: Latvia joined European states in accusing Iran of nuclear breaches, citing IAEA verification gaps. Sports: Latvia finished last in the Baltic Cup after a 1-0 loss to the Faroe Islands.

Drone Diplomacy in Tallinn: Ukraine and Latvia signed a new Drone Deal during Zelensky’s visit to Estonia, focused on joint drone work, air defense and missile defense, plus sharing Ukraine’s counter-drone know-how and building an integrated air-defense system. Regional Summit Push: Nordic-Baltic leaders backed Ukraine’s “swift accession” to the EU and stressed closer defense investment and capability building as drone incidents keep raising airspace concerns. Baltic Security Drills: Russia staged Baltic Fleet air drills from Kaliningrad with Su-24M bombers and Su-30SM2 fighters, rehearsing strikes on convoys, command posts and warships—aimed at reinforcing pressure on NATO’s northeastern flank. NATO Undersea Focus: The U.S. Navy used BALTOPS 2026 near Liepāja to demonstrate unmanned underwater monitoring to protect contested waters and critical seabed infrastructure. Local Watch: Latvia’s inflation rose to a five-month high in May, with housing, utilities, and services among the drivers. EU Travel Impact: The EU’s Entry/Exit System is warned to cut Schengen tourism by up to one-third due to border delays.

Baltic Air Policing: French Rafale jets shot down a foreign drone that entered Latvian airspace, with Latvia saying it was diverted due to Russian electronic warfare; an air-threat alert was issued in eastern regions and later lifted, with no injuries or damage reported. Ukraine War Spillover: Kyiv’s strikes on Russian fuel infrastructure and reports of fuel “problems” in occupied Crimea underline how the drone and energy fight is widening across the region. EU Sanctions Pressure: A coalition of Nordic, Baltic and other EU states is urging the Commission to tighten and harmonise Schengen visa rules for Russian citizens, arguing tourism weakens sanctions and raises security risks. Local Accountability: Latvia’s anti-corruption bureau (KNAB) is calling for criminal proceedings against former Rēzekne mayor Aleksandrs Bartaševičs over a spa project and alleged misuse of EU co-financing. Weather Watch: Rain continues across Latvia today, with another system bringing more showers and possible fog tomorrow, and thunderstorms possible later in the week. Culture Spotlight: Latvian-made film “Ulya” earned major international praise after premiering at Cannes.

Baltic Air Policing: French Rafale jets shot down a foreign drone over Latvia’s Latgale region after it entered Latvian airspace from Russia, with Latvia saying it was diverted by Russian electronic warfare; the incident was near Berzgale (about 30km from the border), no injuries or damage reported, and NATO command took the final decision. Public Safety Alerts: Earlier air hazard warnings told people in eastern municipalities to stay indoors and follow the “two-walls” rule, and residents were urged not to approach any suspicious object but to call 112. NATO Readiness: A senior NATO officer said the first confirmed drone shootdown in Latvian airspace shows alliance resolve to defend “every inch” of Latvia and that Latvia/NATO are rapidly adapting as drone threats evolve. Ukraine War Spillover: The drone incident adds to growing concerns that the Ukraine conflict’s drone warfare is reaching NATO territory, raising escalation fears along the eastern flank. Rēzekne Corruption Probe: Latvia’s anti-corruption bureau KNAB called for criminal proceedings against former Rēzekne mayor Aleksandrs Bartaševičs over an expensive spa project and EU co-financing issues. Online Access Curbs: Latvia’s regulator NEPLP restricted access to Wildberries.ru and other Russian sites, citing content tied to Russian symbols and support for the war against Ukraine. Sports (Riga-linked): Latvia won the FIBA 3x3 World Cup men’s title in Warsaw, completing a “triple crown” after earlier Europe Cup and Olympic success.

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.