Latvian Political Monitor

@romans_melniks What profit are you talking about, two-wheeler?🙈 Do you really not know that for years we have been operating with an annual loss of 2 billion a year? The budget deficit is equivalent to losses in the private sector.

Correct. Lower taxes are better. But then something else must be said. Fewer services 'for free'. That suits me. But it doesn't suit society. The majority demands that more be given for free. Health services, for example. Now we also have to sponsor fuel? From already spent taxes, right?

Two questions for the Leninists. In communism everything is free. Where is my free education and health quotas? The state 'must provide for me', where is it? A super popular thesis. Half a year ago the Leninists demanded the pension money back. Logically - pensions are paid by the state, so it's free! I was annoyed. Today the Leninists demand to pour fuel cheaper. For each and every one, in a united pioneer row. Clear. Now I am extremely annoyed. But I always try to understand, so two questions. 1) what is 1+1? 2) where did you grow up like this? I saw the Soviet Union, that 'free' thing. I am old. But I have never demanded anything from the state for free. I know that now I pay taxes for other people's pensions and also health quotas go to others. I have never seen 'free' for myself. Neither in collective farm times (then it was through blat, which is not free), nor now. Again, where did you screamers grow up?🫠

@sidsloth261949 @realNepareizais True. The ABC of truth. But we here cannot influence global processes and thus fuel prices. Attempts to shift money from one pocket to another through taxes will not solve this problem. It is a zero-sum paradigm.

The energy crisis affects absolutely everyone, directly or indirectly (through service prices). The private sector feels the increase in costs, and in the public sector it's the same - they are asking for extra money not only for fuel against the backdrop of an already negative budget. There is no pleasant solution here. Everyone will have to bear this on their shoulders, whether they want to or not.

Very simple. In communism everything is free and provided by the state. They expect it 'for free'. I see it as a post-Soviet mindset. On one hand, they demand the state provide everything. Be responsible for everything. This is a regular social media topic. Give me this, that and more. And on the other hand, they don't want to pay for it. I don't ask the state to support me and provide me something. That's capitalism. And accordingly, I don't have this contradiction.

It turns out that the fuel crisis in France is not just about a few petrol stations. Macron has also gotten involved. https://t.co/srAuJgvpAr

@ECapligina @IvarsAuzins The oil price is only about 25% of the fuel price, even now. The rest is the refining cost, currently abnormally/historically large (diesel refining capacity in Europe is maxed out), and of course taxes (about half the price at the pump). It's all piled up together.

One of the reasons is communism. The idea that prices can be 'regulated'. In the stations that are empty, a maximum price was set. Workers happily ran and bought out. It's like in Soviet times - Brezhnev set a price for sausage and there was no sausage in the store. But under the counter for market price it was. Here we have Valainis also wanted to regulate both sausage and fuel prices. Didn't succeed, so fuel is at gas stations 🤷🏻‍♂️

In France, 11% of fuel stations have no fuel at all. There are many more where either diesel or petrol is missing. And the price in the rest is already approaching €2.50. Meanwhile, local activists think even worse than excel. We'll reduce taxes, take from hospitals, and fuel will appear in gas stations cheaply. As Brezhnev said, the economy must be economical.

Do you know what's with that 'through'? I remember the 90s. Money and savings evaporated. Track suits and dermantin sneakers cost a month's salary. Fuel wasn't without queues, and it also cost a lot. So what? And nothing, we survived. There are just too many sour-faced people in heads now. Price fluctuates, oh and woe and me and pity. Save me, I'm fainting! We need to stop politically soothing those sourpusses. That's all.

@simple_avg_Joe Need, yes. From the series so that everything would be, and nothing would be for it🤡

In Germany, government ratings are so catastrophic (especially for Merz), AfD's dramatic rise is so decisive that the government has punched another hole in an empty wallet and is trying to reduce fuel prices. Completely pointless. When fuel prices from 1.5 euros rapidly race above 2, and even 3 is not fantasy, this will do nothing. But the ordinary voter likes it. Reason is a museum-worthy thing.

Regarding the governance of state-owned companies... it must be fundamentally changed in the next government. All state-owned companies must be placed under the Latvian Development Fund, where there would be professional management and the earned money would be reinvested and earn, rather than be consumed in maintaining the state apparatus. Investments would earn with interest. The shares of this LV Development Fund would be listed on the stock exchange and would obtain the necessary capital for energy projects, regional construction, strengthening the border, infrastructure projects such as roads and railways, etc.

Day No.74 in the prime minister's chair (Wednesday) — TET data center, debates and 🇺🇦 Budanov at the Motor Museum. 🏢 OPENING OF TET DATA CENTER IN SALASPILS Latvia must become a leader in speed in the application of artificial intelligence. Did you know that TET stores almost 20% of Ukraine's state data on Latvian servers and provides cybersecurity services? We opened TET's new DC7 data center @SalaspilsLv — one of the most modern data centers in Latvia, also built for artificial intelligence technology needs. ➖️ Meets high security standards and is certified for Tier III level. ➖️ Data can be stored right here 🇱🇻 in Latvia, while creating backup infrastructure in Europe if needed. ➖️ The data center is connected to the largest optical internet network nodes in Latvia and international internet exchange points in Europe. ➖️ Even drone detection capabilities have been established. ➖️ A particularly good example of using residual heat in cooperation with Salaspils Siltums — the generated heat is not simply released into the air, but is used for heating. This is exactly what modern infrastructure projects should be — security, technology and energy efficiency in one place. 🛡️ THE RIGA CONFERENCE BUSINESS FORUM 2026 — “SECURITY AS A DRIVER OF GROWTH” At the LU business forum, I emphasized a simple principle: Strong security is possible only together with a strong economy. Latvia invests approximately 2 billion euros annually in defense. My goal is to ensure that 30–40% of this money returns to the Latvian economy, developing our own defense industry, technologies, manufacturing and exports. A secure border cannot exist without a strong economy. 🇱🇻 @amchamlat UKCHam NordicsCham DEBATES WITH PRIME MINISTER CANDIDATES In the debates, I put the main emphasis on the economy, a balanced budget and Latvia's ability to earn more. My formula is simple: 💪 Strong economy = strong defence 📈 Strong economy = strong development 💶 Bringing new money = new economy 🌍 Export — including military industry 🏦 Less excessive caution and restrictions in the banking sector Latvia needs an economy that not only distributes existing money, but can create and attract new money. 🇺🇦 KYRYL BUDANOV AT THE MOTOR MUSEUM Meeting with Kyrylo Budanov at the Motor Museum. We talked about: ➖️ 🇺🇦 Ukraine's view of the security situation and the time we have to prepare; ➖️ 🇷🇺 The issue of Russia's stolen 🇺🇦 Ukrainian grain; ➖️ Latvia's readiness to help Ukraine with its grain exports. And another very apt comparison by Budanov, standing next to Brezhnev's Rolls-Royce. He described Russia's approach roughly like this: if Russia cannot fix Brezhnev's Rolls-Royce, it is simpler not to fix the car, but to ban Brezhnev from driving it. A fairly precise example of how the 🇷🇺 system works. 🙂 I also gave 3 interviews, Polish TV, EuroNews and UKR press. Everyone was interested in the security issue, Latvia's readiness, peace talks in Ukraine and Russia's attack on NATO.

Ha, ZZS has gone into pre-election hysteria and now offers anything at all. Even things that are illegal. Goal – to promise Lenin's logs to the people. Who doesn't want money for themselves? Everyone does. They offer to drop VAT on fuel. I'm not even talking about the fact that then any budget will fall apart, even while continuing to borrow maximally. Ratings threaten to throw the party out of the Saeima, and then – who cares about the budget? I'm talking about the fact that reducing VAT on fuel is not allowed in the European Union. When the Poles and Spaniards tried, they immediately launched a fiscal violation procedure. They now sadly promise to fix things. But. As some Repše said – well, how can one not promise? 🫠

Day No. 70 in the prime minister's chair - CONEXUS | Inčukalns – the gas battery of the Baltic region🔋 The Inčukalns underground gas storage is a place where Latvia's industrial history meets today's energy and security challenges. Previously, Inčukalns mainly worked as a seasonal warehouse – gas was injected in summer and withdrawn in winter. Today its role is completely different. 🚢 LNG ships in Klaipėda and Inkoo deliver large volumes of gas at once, but consumption is continuous. Inčukalns balances this difference – it receives gas, stores it, and returns it to the network when consumption rises, the next LNG shipment is delayed, or the market situation changes. That is why Inčukalns is increasingly becoming the “gas battery” of the Baltic and Finnish region. 🔋 📊 Facts about the CONEXUS Inčukalns gas storage: • Total annual gas consumption of countries connected to the storage – 40 TWh, or roughly 40 LNG cargoes. • 🇱🇹 The Lithuanian fertilizer producer ACHEMA has resumed production on a limited scale. At full capacity, the company consumed about 12 TWh of gas per year, now about 6 TWh. Products are no longer as competitive also due to the costs of the CO₂ levy introduced by the EU. • 🇱🇻 Latvia's state-held reserve in Inčukalns is 1.8 TWh, covering about 2–2.5 months of consumption. • 🇱🇹 Lithuania's reserve – 1.2 TWh. • 🇪🇪 Estonia's reserve – 1.0 TWh. • 👥 CONEXUS gas storage is used by 15 active gas traders. • 📈 If strategic changes are not made in energy policy regarding gas consumption and infrastructure use, the transmission tariff will continue to rise. Previously, about 14 TWh were transported through the system; now only 6–7 TWh, while CONEXUS costs are approximately 95% fixed and only 5% variable. From September 1, the transmission tariff will increase by 7%. • ❄️ The 2025/2026 winter gas price was significantly affected by the sudden large demand in 🇫🇮 Finland. • 🇱🇹 Lithuania is not in the common 🇫🇮🇪🇪🇱🇻 gas transmission tariff zone and applies an additional 0.8 €/MWh charge – 0.4 + 0.4 €/MWh. • 🇵🇱 Poland applies additional transmission costs of about 5 €/MWh, which practically eliminates commercial interest in selling the gas stored in Inčukalns further into Europe. • 🏗️ 22.52 TWh is the required buffer gas volume to ensure the operation of the Inčukalns storage – about 1.5 billion euros at today's prices. • ⚙️ The maximum technological capacity of Inčukalns is 24.4 TWh. • 📉 The storage fill level is currently relatively low because traders are in no hurry to buy gas for reserves – the future long-term price is around 40 €/MWh, while the current price is around 80 €/MWh. • ⛽ The Inčukalns storage fill is about 11 TWh, including about 4 TWh of safety reserve. ⚙️ During the visit, we looked at both the historical pump and compressor units, some of which were still built during Soviet times, and the new equipment. An interesting historical fact – the technological solutions of that time were supposedly based on drawings developed in the USA and legally purchased by the USSR, not obtained through industrial espionage. But Inčukalns has long been more than just a Soviet-era legacy. 💶 99.5 million euros have been invested in a seven-year modernization, including 44 million euros of EU funding. 🇺🇸 A new Solar Turbines “Titan 130” gas pumping unit has also been installed in the storage, allowing stable gas withdrawal even at lower storage fill and pressure. Previously, the system essentially lived by a rhythm – inject for several months, withdraw for several months. Now the operating mode and traders' nominations can change even within a few days. This is a completely different level of load and responsibility. 🛡️ That is why we specifically discussed the resilience of Inčukalns: electricity and communication outages, the possibility of taking over control manually, spare parts, independent communication channels, cybersecurity, sabotage risks, and drone threats. 💶 The second big issue is tariffs. If it is not economically advantageous for a trader to buy gas today, pay for transportation and storage, and sell it later, the market will not fill the storage by itself. The state's task is to prevent short-term commercial calculations from threatening our energy security in winter. 🌍 The next task is to achieve a truly unified regional gas market. 🇱🇻 Latvia, 🇪🇪 Estonia, and 🇫🇮 Finland already operate in a common market zone. 🇱🇹 Lithuania has not yet fully joined it, and 🇵🇱 Polish tariffs further increase the cost of gas movement to the rest of Europe. Our interest is a system in which an LNG ship can enter Klaipėda or Inkoo, gas reaches Inčukalns without artificial tariff obstacles, and from there – to consumers throughout the region. 🇱🇻 Inčukalns is Latvia's strategic advantage. It is no longer just a “gas basement for winter”. It is critically important energy security infrastructure for the Baltic and Finland – our region's gas battery. 🔋

@hellikopters @andrislov Yes, that's right. So far only in the industrial sector, also aviation, from 2027 it will also be for the wheel.

Those 42 million, for example, are for CO2 quotas. The company buys them on the ETS market in Europe and submits them to LVĢMC (the local ETS administrator). These quotas are cancelled, they give no income to the budget. Green Deal obligations. The rest are liabilities, but their actual recoverability without the initiated process is practically zero. In the context of the national economy, it is better for the company to fly. The alternative was not flying. I really don't know what's 'funny' about that.