AGP Executive Report

airBaltic & Aviation Finance: airBaltic secured up to €257m in interim financing from bondholders, with the interest rate set at 25%, as the carrier reshapes its network around Riga. Riga Airport Expansion: Rīga Airport has begun the next stage of its €98m passenger terminal expansion, supporting growth as airlines adjust routes. Defense & Drones (Latvia): Latvia’s business leaders trained at Riga’s Drone House, reflecting how companies are getting involved in practical drone skills amid rising regional tensions. Baltic Security Tech: Lithuania plans a €5m AI-powered integrated airspace surveillance system to unify sensor data, improve drone detection, and feed warnings to authorities. Russian Grain Transit: Latvia and Lithuania are weighing a ban on Russian grain transit through their ports as shipments rise after Ukrainian drone attacks disrupt other routes. EU-Russia Hybrid Pressure: Germany is set to roll out comprehensive measures against Russian sabotage and cyberattacks, including drone protection for critical sites. Business & Economy (Latvia): Latvia’s industrial output fell 0.2% in July, while household spending is reported to have hit a record high. Tourism & Culture: PÖFF30 in Tallinn puts Baltic cinema in the spotlight, while Venice’s 83rd festival features Arab filmmakers tackling war, displacement, and collapse.

Baltic Security & Trade: Latvia and Lithuania are weighing a ban on Russian grain transit through their ports as shipments rise after Ukrainian drone attacks disrupt other routes, with Latvia set to discuss a full stop while Lithuania considers restrictions. Corporate Finance: airBaltic has secured interim financing terms of up to €257m from bondholders, with interest set at 25% per year, as the airline restructures its network around Riga. Local Business & Skills: Latvia’s “Drone House” is training executives from major companies to operate drones, reflecting growing private-sector involvement in defence readiness amid Russia-linked threats. Energy & Regional Aid: NB8 countries (including Latvia) are mobilising at least €918m in 2026 to support Ukraine’s winter energy needs, focusing on power-grid repair and resilience. Markets & Economy: Eurostat reports July retail trade volume fell 0.6% in the euro area and 0.4% in the EU, while Latvia posted a +2.5% monthly increase. Tech & Games: Riga-based Estoty announced “The Missing Tail,” a narrative co-op adventure with a “one copy for two players” model, planned for PlayStation and Xbox alongside Steam.

airBaltic Financing: Latvia’s flag carrier has lined up interim financing of up to €257m from bondholders and third-party investors, with a Sept. 11 vote and funds expected in stages to keep liquidity steady as it reshapes its network. Riga Business & Security Training: Around 20 executives from Latvia’s biggest firms trained at Riga’s Drone House, a citizen-led drone facility aimed at boosting practical defence skills amid rising tensions with Russia. Latvia Tech in Media: Veset is pitching a self-service subscription for its Nimbus cloud playout at IBC, promising faster “decision to live channel” setup for content owners. Latvia Retail Pulse: Eurostat data shows Latvia’s retail trade volume rose strongly year-on-year in July, while the euro area and EU overall cooled slightly month-on-month. Baltic Energy Cooperation: Baltic energy players signed a memorandum to form the Baltic Energy Initiative, targeting cross-border projects and funding as offshore wind and grid integration remain bottlenecks. Ukraine Winter Power Support (NB8): NB8 countries, including Latvia, pledged at least €918m in 2026 to help Ukraine’s energy sector ahead of winter, pairing short-term grid needs with longer-term resilience. Hybrid Threats Watch: Germany pushed for tighter Russian tourist visa limits after alleged sabotage linked to the Leipzig airport drone incident, underscoring how security policy is spilling into mobility and business travel.

airBaltic Financing: Latvia’s flag carrier secured agreements for up to €257m in interim financing from bondholders and third-party investors, with a Sept. 11 sign-off and funds expected in two tranches, as it reshapes its business plan and fleet. Riga Airport Expansion: RIX began the next stage of its €98m passenger terminal expansion, supporting growth at the main Baltic gateway. Latvia Economy Pulse: Latvia’s industrial output fell 0.2% y/y in July, while retail trade data across the EU showed Latvia among the stronger performers. CleanR Growth & Recycling: CleanR Grupa reported €77.6m turnover in H1 (+13%) and investments of €5.4m, while CleanR Industry will invest €3.3m to automate a packaging sorting center in Riga. Baltic Energy Cooperation: Baltic Sea energy firms signed a memorandum to deepen cross-border projects and funding efforts under the Baltic Energy Initiative, as offshore wind and grid integration remain key hurdles. Security & Business Resilience: Latvian business leaders joined drone training at Riga’s Drone House, reflecting how hybrid threats are spilling into corporate preparedness. Ukraine Winter Power Support: NB8 nations, including Latvia, pledged additional help for Ukraine’s energy sector ahead of winter, building on €918m already allocated in 2026. Tech for Media Operators: Veset showcased a self-service subscription for its Nimbus cloud playout platform, aiming to cut sales cycles for FAST/OTT channel launches.

airBaltic Financing: Latvia’s flag carrier says it has secured agreements for up to €257m in interim financing from bondholders and third-party investors, with a Sept. 11 sign-off and money expected in stages to keep liquidity through its next development phase. Latvia Economy: Industrial output in Latvia fell 0.2% year-on-year in July, with manufacturing rebounding while mining and utilities weighed on the result. Retail Pulse: Eurostat data show July retail trade volume slipped 0.6% in the euro area and 0.4% in the EU, while Latvia rose 2.5% month-on-month. Energy Cooperation: Baltic energy firms signed a memorandum to deepen cross-border cooperation via the Baltic Energy Initiative, aiming at security, expertise sharing and EU funding. Riga Business & Property: Construction is set to start on the SPORTA 2 quarter first phase in Riga, a €50m project focused on Class A offices and public space. Corporate Growth & Waste Tech: CleanR Grupa reported €77.6m turnover (+13%) in H1 2026, while CleanR Industry plans €3.3m to automate packaging sorting. Security & Trade Controls: Latvia’s State Security Service raided the Russian-language “Mnogoknig” bookshop chain in Riga over suspected EU sanctions breaches.

airBaltic Financing: Latvia’s national carrier has secured terms for interim bridge financing of up to €257m via new “super senior” bonds maturing 26 Feb 2027, with €180m expected soon after bondholder consent and €77m later, at a steep 25% annual interest rate. Aviation Infrastructure: Rīga Airport has started the next stage of its major passenger terminal expansion, adding about 20,000 sq m, with the project set to cost around €98m and funded by three lenders. Regional Connectivity: A new overland option is emerging for Baltic travel as direct Vilnius–Riga rail service has been restored and timetables coordinated to enable a through Vilnius–Riga–Tallinn trip under one ticket. Defence & Industry: Latvia hosts a Dual-Use Export Forum in Rēzekne (6–7 Sept) to link local tech firms with international defence supply chains, with 150+ business meetings planned. AI Cooperation: Nine CEE countries, including Latvia, signed the Prague AI Declaration to coordinate EU AI policy and connect regional computing capacity. EU Data Rules: Latvia’s Constitutional Court challenge highlights limits on public disclosure of minority shareholders’ personal data under EU law. Household Demand: Latvia’s household spending hit record levels in 2025, averaging €619 per person per month, up 46% since 2019. Crypto Regulation: Binance is still serving some EU customers after missing MiCA’s July 1 deadline, using regulatory provisions and routing while seeking authorization elsewhere. Public Health: Eurostat data put Latvia among the EU’s higher obesity rates, at 24.6% of adults.

airBaltic Financing: Latvia’s flag carrier has agreed terms for up to €257m in interim financing with bondholders and third-party providers, a liquidity bridge while it restructures; a bondholder meeting is set for 11 September. Airport Expansion: RIX Riga Airport has started the next stage of its passenger terminal expansion, adding about 20,000 sq m of new space and upgrading check-in, security and baggage areas. Cybersecurity: Latvia’s Consumer Rights Protection Centre (PTAC) says hackers breached its Remote Statistical Data Retrieval System, exposing contact details for 697 licensed business representatives and 34 officials. EU Data Rules: The EU Court limits public access to minority shareholders’ personal data, challenging Latvia’s constitutional complaint by 17 minority shareholders. Energy Markets: European gas prices jumped to €75/MWh, near 2022 crisis levels, as Middle East tensions and low reserves keep winter supply fears alive. Baltic Energy Cooperation: ORLEN helped launch the Baltic Energy Initiative, bringing together energy firms across the region (including Latvia) on offshore wind, LNG, hydrogen and infrastructure protection. Business Deal: XTEND and JFB Construction Holdings completed their merger, with the combined company set to trade on the NYSE as XTND from 4 September.

M&A & Markets: US-listed Apogee Enterprises will buy Riga-based Groglass for €62.5m (with €10m performance-based earnout), keeping Groglass as a key Riga R&D and production hub ahead of a planned close by November 2026. Capital Markets: XTEND and JFB Construction Holdings say the XTEND merger has received $60m in cash and is on track to close Sept. 3, with the combined company set to start trading on the NYSE as “XTND” on Sept. 4. Energy & Costs: Latvia’s wholesale electricity price averaged €80/MWh in August, with Baltic prices driven by changing wind conditions; Lithuania’s imports and exports also shifted month-on-month. EU Policy & Sanctions: EU foreign ministers backed tighter Russian travel rules after the Leipzig airport drone incident, with discussions including sanctions and visa bans for certain Russian groups. Latvia Watch: Latvia’s Consumer Rights Protection Centre shut down a data system after a security incident exposed contact details for 697 licensed businesses and 34 officials. Business Integrity: Latvia’s police are investigating alleged insolvency-services fraud involving 57 victims and losses of at least €81,304. Local Economy: Alūksne Hospital is asking residents and farmers to donate surplus produce to expand patient meals.

EU-Russia Escalation: Germany says Russia was behind an explosive drone attempt at Leipzig/Halle Airport on Aug. 4, found near a Ukrainian cargo plane and later defused. The EU’s top diplomat called it “state-sponsored terrorism,” while Berlin moves to close a Russian consulate and tighten entry rules. Sanctions & Visa Pressure: EU leaders are weighing fresh sanctions and tougher Russian tourist-visa restrictions after reports a suspect used Schengen documents. Suspects Named: Reports cite two suspects—one Russian-born Latvian and one Belarus-based Russian passport holder—though detentions may be difficult. Critical Infrastructure Worries: Germany also investigated back-to-back attacks on electricity substations, raising fears of sabotage linked to the wider hybrid threat. Latvia Business Angle: Latvia’s economy continues to track through labor and energy signals—average Q2 gross wages rose to €1,886, while Baltic electricity prices stayed volatile, with Latvia-linked bottlenecks and gas-driven pressure keeping costs elevated. Payments Innovation: Handwave expanded its Visa deal to enable palm biometrics card onboarding using tokenization and authentication.

Aviation & Restructuring: airBaltic is reshaping its summer 2027 network, cutting most at Tallinn and Vilnius while keeping Riga as the main hub, with 57 direct routes from Riga, 13 from Tallinn and 8 from Vilnius, plus higher frequencies on key routes as the airline seeks cost control and interim financing. Energy Costs: Electricity prices are set to stay under pressure as natural gas stays expensive, with August showing higher second-half prices linked to weaker wind/solar and grid bottlenecks affecting Baltic power flows. EU Sanctions & Security: EU foreign ministers are debating tougher measures after a Leipzig/Halle drone attack blamed on Russia, with talk of expanding sanctions lists and shifting toward faster, more targeted “thematic” packages. Latvia Telecom Deal Delayed: Latvia’s caretaker government says it won’t complete the buyout of LMT and Tet shares from Telia during its term, aiming instead to prepare the deal. Housing Policy: A second round of Latvia’s affordable rental public-private housing programme has been cancelled after local authorities cited unpredictable costs. Cross-Border Trade: eBay is launching its first Baltic Export Summit in Vilnius (30 Sept), aiming to connect 1,000+ regional SMEs to global ecommerce partners. Fraud Watch: Latvian police warn scammers are targeting relatives of missing people in Nepal with offers of “latest” help and clairvoyant services.

airBaltic Network Shift: airBaltic has mapped its summer 2027 schedule after restructuring, with Riga set to dominate as the main hub (57 direct destinations) while Tallinn (13) and Vilnius (8) play supporting roles, plus more frequencies and tighter connections. EU Security Coordination: EU defence ministers backed a new high-level group of senior political and military leaders (with the UK and Ukraine) to close conventional power gaps and respond faster to evolving threats. Baltic Hybrid Pressure: EU officials warn Russia is moving beyond “hybrid threats” into more physical, “kinetic” actions, including drone and airspace incursions affecting Latvia and neighbours. Latvia Migration Politics: Latvia’s coalition dispute over immigration restrictions escalated after the Interior Ministry submitted a migration recommendations package with over 70 measures, but ministries’ coordination was still incomplete. Data Centre Expansion: Tet’s new DC7 in Salaspils received Tier-3 Facility certification, making Tet the only Latvian operator with two Tier-3 certified data centres (DC7 opens 09 September). Business & Courts: Latvia’s Riga Regional Court upheld prison sentences in the Rimšēvičs and Māris Martinsons bribery case. Agribusiness Outlook: Latvian dairy producers are watching Agrone’s planned Riga and Valmiera dairy acquisition, hoping it could lift milk prices if regulators approve. Tourism Demand Signals: EU overnight stays rose 1.7% in H1 2026, while Latvia-linked regional travel interest continues to build.

Latvia Court Upholds Bribery Sentences: Riga Regional Court has upheld prison terms for former Bank of Latvia governor Ilmārs Rimšēvičs and businessman Māris Martinsons in a bribery case, with asset confiscations and recovery orders still in play. Baltic Security Alert: Latvia and Finland raised readiness after security warnings near the Russian border; NATO fighter jets were scrambled and Finland tightened air/sea traffic restrictions as a precaution. Ukraine War Spillover: Russian strikes on Kyiv and the surrounding region continued for a sixth day, killing at least nine and injuring more than a dozen, while drones and missiles also hit infrastructure and border areas. EU Tourism Keeps Climbing: Eurostat reports EU overnight stays rose 1.7% in H1 2026, with foreign tourists accounting for 48.9% of stays. Ikea Price Cuts: Ikea announced a €1.2bn Europe-wide price-reduction push to attract cost-pressured shoppers. Business & Tech in Latvia: XTEND’s XOS-powered AtlasROVER made its first post-acquisition ground deployment in Asia-Pacific, signaling expansion of Physical AI robotics software across domains. Venture Building in Riga: University of Latvia Innovation and Acceleration Centre teams joined Maxwell Centre’s Impulse programme, culminating in a pitching event. Immigration Politics in Latvia: NA demanded answers from Prime Minister Andris Kulbergs after objections to an immigration restriction plan, raising coalition tensions. Defense Industry Event: Latvia is listed among confirmed national pavilions for Korea’s integrated K-DEX 2026 ground defense exhibition in December.

Latvia Economy: Latvia’s Q2 GDP growth accelerated to 3.0% year-on-year, with household spending up 2.2% and investment rising 6.5%, while government consumption fell 2.4%. Data Centres: Tet’s new DC7 in Salaspils has earned Uptime Institute Tier III Facility certification, making it the only Latvian operator with two Tier III-certified sites. Riga Development: Local entrepreneurs argue Riga needs a stable 20–30-year development plan to cut bureaucracy and give investors predictable rules. Crypto Infrastructure: Paybis rolled out major upgrades to its On/Off Ramp, including a new React Native SDK, faster checkout, and PayPal as a payment option for US users. Regional Trade & Security: Russian grain exporters are rerouting shipments to Baltic Sea ports, with Latvia among the key destinations as Black Sea routes face disruption. Immigration Policy: Latvia’s Interior Minister is pushing stricter rules for third-country nationals, including quotas and tighter controls on foreign students and employment. Defence Industry Context: A suspected arson fire at Poland’s WB Electronics drone-component plant is being investigated as possible sabotage linked to the wider European defence supply chain.

Latvia Economy Watch: Latvia’s GDP grew 2.8% year-on-year in the first half, with wholesale/retail trade and repairs driving the rise, while household consumption also increased. Election & Politics: Latvia heads to Saeima elections on Oct 3, with 14 parties on the ballot and the 5% vote threshold for seats. Defence & Security: The CIA’s John Ratcliffe reportedly stopped in Riga en route to a secret Moscow mission, as NATO allies weigh Russia’s hybrid and escalation risks. EU Budget & Spending: EU leaders are negotiating a tighter 2028-2034 budget while pushing higher defence and competitiveness spending, with Antonio Costa touring capitals including Latvia. Crypto Payments: Paybis rolled out a major upgrade to its Crypto On/Off Ramp, adding a new partner integration path and PayPal for US users. Transport Rules: Latvia has just one regular bus route left to Russia (Riga–Moscow), with permits ending Jan 9, 2027, while regular Belarus/Russia services are being rejected. Disaster Impact: Nepal-Tibet floods keep widening the missing list, including dozens of foreigners reported missing on the China side.

Global Defence Finance: Canada’s PM Mark Carney backs a new Defence, Security and Resilience Bank (DSRB) to fund allied rearmament with low-cost loans, with Latvia among the supporters—but key G7 players like Germany and the UK are still holding back, raising doubts about whether the bank can secure the top credit rating it needs. Baltic Security & Hybrid Threats: European officials say they see no sign Russia is preparing a conventional attack on NATO or Baltic states, while Baltic governments keep warning about hybrid sabotage and provocations. Latvia in the Spotlight: Latvia is named among countries backing the DSRB and also appears in the latest reporting on missing foreigners from the Nepal–Tibet disaster. Nepal–Tibet Disaster: The death toll from Himalayan flash floods and mudslides has climbed to about 750, with more than 3,000 missing; China reports 261 missing foreigners from 23 countries, including 33 Latvians, as rescue teams face fresh flood risks. Regional Business & Mobility: airBaltic marked its 31st anniversary and hit 70 million passengers, underlining continued demand for Baltic air connectivity.

Global Defence Finance: Canada-backed Defence, Security and Resilience Bank (DSRB) is gaining momentum, with Latvia among supporters, but key G7 players like Germany and the UK are still holding back—raising doubts about whether the bank can secure the AAA rating it wants. Aviation & Border Tech: EU’s EES biometric checks are set to resume on 6 September after the summer pause, with airports warning of fresh queue pressure as UK traffic and new enrolments collide. Latvia in the Mix (Disaster Watch): Nepal–Tibet floods and glacier-collapse aftermath has reached at least 750 deaths and over 3,000 missing; China says 261 foreign nationals are unaccounted for, including 33 Latvians. Local Business & Tourism: Northern Latvia launches a “taste trail” tourism network, linking small producers like Trikāta with visitors via themed routes and product tastings. Transport & Logistics: Baltic rail freight stakeholders met in Riga to discuss shifting routes after Russian/Belarus transit declines and how to grow north–south freight links. Aviation Milestone: airBaltic marked its 31st anniversary and the 70 millionth passenger carried since 1995.