Latvian Political Monitor

For information on what was discussed with the President: - Arctic Summit 2026 foreign policy news, EU MFF budget and Latvia's position - Stopping Russia's grain transit and prioritizing Latvian grain - AirBaltic Chapter 11 approval, receiving financing and attracting a strategic investor - RailBaltica progress on common Baltic positions in talks with Estonian and Lithuanian prime ministers

Logically structured explanation about AB & C11👌

@KristopansVilis I had heard such a narrative, but considered it nonsense. And I have expressed my position more than once. What other 'table' is there, if it has been publicly stated that little depends on the state? Let everyone drill their own table, it is not for me.

Here is a more detailed press release about airBaltic Chapter 11 restructuring https://t.co/M5SQBgg4Hv

@IvoSavics Of course, all options were legally reviewed. Everything is in accordance with the laws and the interests of AB and Latvia. Aircraft leasing agreements are with various international financiers, so Latvia's TAP was pointless in this case.

This morning, information was published about a significant event in the airBaltic financial stabilization process. The airline has initiated a legal protection process in the USA under the Chapter 11 procedure. It is a classic – the most popular method in the aviation industry, through which many well-known airlines have gone. For example, SAS and Norwegian, well-known in Latvia. It is the most expensive of similar processes, but practically the only one that protects companies against aggressive commercial practices from suppliers and creditors. More leverage on the company's side. Funding for the airline to continue flying during the process has been provided by private investors. There is no state money involved. Previously, an alternative path was considered – the earlier announced 257 million loan was part of this option. However, it was felt that lenders were not interested in the airline's future, so in recent weeks this second option was finalized. It worked. The best that is theoretically possible in this situation.

In Latvian regions, high-level companies operate successfully, and their products are known far beyond our country's borders. We can be proud of municipalities that are able to attract such investments. #development #Liepaja #jensenmetal

✔️ Preparation for the next EU funds planning period; ✔️ Potential change to the municipal financial equalization system. On these and other important issues, a valuable conversation with Liepāja city council leadership, heads of structural units, and experts. #municipalities #Kurzeme #Liepāja https://t.co/8EUKvhAdTS

It is especially important to notice the areas where we have excellence and the opportunity to compete at world level. Quantum technologies are one such area. Latvia does not have to start from scratch here. We have internationally recognized scientists, universities and and first practical projects. #science #excellence https://t.co/vt5g9Y3WZa

@realNepareizais That's nice, but the budget doesn't have that option. Unless you cut, for example, health, education, or pensions.

Mr. Lapiņš, your party NA is a coalition partner of the current government, which has voted on all AB issues and participates in consultations, evaluations, and decision-making. Your questions should be addressed to the previous government and to the entire JV leadership, MPs, finance ministers, and the SM. Currently this government is already dealing with the consequences to save AB, giving the last chance to implement the strategic plan and attract a strategic investor. Watch the video, read the news, and ask your colleagues. Please direct the outrage about AB to Siliņa from JV and Briškens.

Day No. 71 (Friday) in the prime minister’s seat ✈️—airBaltic: the new, expensive short-term private loan Let everyone be clear. The choice is between saving airBaltic or continuing to be a bad owner without money. As prime minister, I do not want the state to continue being a bad owner. We trust the professionals, the management board, the supervisory board and Kozlovskis. The plan was brought to the government, we approved it, anchored it in law, which provides for it. I have been saying for a month that decisions are in the hands of bondholders. In this loan, the state does not invest money in @airBaltic. The loan is private short-term financing (secured bondholders and a private fund without collateral cover) that gives Transport Minister Kozlovskis (JV), airBaltic management and the supervisory board 180 days to finally put the company in order and attract a strategic investor. 💶 The new loan is expensive because it reflects airBaltic’s real financial situation. It is in fact the last chance to save the company. In 2024, during Siliņa's government, airBaltic borrowed 380 million euros in very expensive bonds. Even then, this money was supposed to serve to put the company in order. But over two years the money was burned—costs were not cut, the number of aircraft/routes was not reviewed, and finances and debts were not put in order. The result is logical: the next money is even more expensive because lenders see the company’s current risk. 📌 Note — the new private loan’s interest rate is lower than the 30 million euro state loan supported by Siliņa's government and PRO in APRIL (without a plan, without a rescue strategy). Why lower? Because this government reduces the government’s role. It effectively removes the risk that the state as owner could behave inadequately. Immediately the market is ready to provide funds for restructuring. My position on airBaltic has been clear for a long time: 1️⃣ airBaltic’s future is now largely in the hands of bondholders, not shareholders. 2️⃣ The state as owner and airBaltic management could have put the company in order while it still had money. Weak cooperation between company management and political leadership also led to the fact that the then IPO plan was not realized. 3️⃣ This created a situation where the company has a weak financial position, but the owner—the state—has no free money with which to save the company. 4️⃣ If the state as owner has neither the resources nor sufficient experience and knowledge to pull the company out of a severe financial situation, then the state alone cannot save the company. (ZZS @ViktorsValainis understands very well and knows that Lufthansa refused and does not want to finance AB) 5️⃣ That is why the airBaltic management board and supervisory board, together with Seabury, have developed a plan to stabilize the company’s financial situation with the help of private financial investors—in principle without state money. 6️⃣ For this plan to be implemented, the state must let professionals work and must not create additional obstacles. This is the plan submitted to the government by Transport Minister Kozlovskis, which the government has accepted and for whose implementation the necessary legal framework has also been adopted. 7️⃣ 💼 Financial investors evidently believe that within six months the company’s finances can be put in order sufficiently for airBaltic to continue its development and attract a strategic investor. 8️⃣ Now Transport Minister Kozlovskis and the airBaltic supervisory board, which represents state interests, must do everything possible in these 180 days to attract a strategic investor for whom Riga is important as the main base. 🇱🇻 Latvia needs an investor who sees airBaltic’s long-term development specifically in Latvia, with its main base and jobs. Ideally, it would be a partner alongside whom the Latvian state could also retain or acquire a stake in the company in the future. 9️⃣ This is now the direct responsibility of the Ministry of Transport, Minister Kozlovskis and the airBaltic supervisory board. I will ask for regular reports on the potential investors approached and progress of negotiations. ⚠️ I am not satisfied with the current pace of approaching investors. We must get it together. These 180 days must not be wasted.

The value of the state's earlier investments is, in my opinion, zero. Long ago. For years I have analyzed the company in detail and justified it with data from AB's own published reports. For example, that finances run out at the beginning of this year. That's what happened, so the previous government gave 30 million and flew on, that has also been publicly acknowledged. Additionally, at the beginning of the year they published statements that in autumn more would be needed, around 300 million. They would come to the state. They tried, but the government is different, no more handouts. What to do now? The Prime Minister announced that further 'rescue' cannot be only on the state's shoulders. I agree, the aviation business is generally unprofitable, if the state is a participant, then it is basically loss-making (because the state is by definition a bad manager). That was said in this few-month period. No more budget handouts. The task is clear, we will implement it. Now there is a transition period. If private parties give money, then okay, we fly on. They gave, but they could have not given. I think without that the lights would already be out. The state only came to meet by recognizing the remaining investments as worthless. SP Global recognized a de facto default. That was the good will, they practically no longer paid anything. Now what? Now we wait for the test result. After all the worthless political blathering, the moment of truth arrives. Will the bird fly on its own or not. We can only watch and hope.

I am convinced that the people working and living in local governments know best about work and life there. It is valuable to meet entrepreneurs who create added value and attract investments to the regions. This time I am pleased to visit companies operating in @salduslv https://t.co/i9nfb8LzpC

The municipal financing equalization model, the possibility for municipalities to more effectively finance their development projects, and many other issues were discussed today with the leadership of the @salduslv council – @MarisZusts and his colleagues. Thanks for the meeting and productive conversation! https://t.co/gNfbeFf5JI

📍Development of Latvia's national economy; 📍EBRD involvement in the development of the Baltic capital market; 📍Security in the region. Today in Riga we discussed these and other important issues with the EBRD Head of the Baltic Office, Ahmad El Mokadem. https://t.co/Paitp3zu5J

Almost 100 million euros invested in the passenger terminal expansion project at @riga_airport are not simply expenses. It is an investment in Latvia's future — our ability to attract people, businesses, new flights and new opportunities. https://t.co/yg9LAH1fxx

Day No. 63 in the prime minister's seat (Friday) — from the first speech in the Saeima, airBaltic to South Korean investments Friday started early — with an interview on LTV's Morning Panorama. 📺☕️ Questions, of course, about the most current topics — CSDD and airBaltic. 35th anniversary of the restoration of Latvia's real independence — celebrations in the Saeima with my first speech to the Saeima parliament and an award at the Presidential Palace to the outstanding Māra Zālīte - I recommend listening to her speech delivered in verse, it was something special. 🚗 CSDD In my opinion, CSDD now needs to come up with concrete solutions to reduce potential risks to citizens after the data leak. ➖️ For example, it should provide the option to change car license plates for free for those who wish. Initially, a few hundred new plates could be created, with old ones handed in and gradually replaced. That's just one possible solution. ➖️ I also believe that every affected person should individually receive an apology letter from CSDD, clearly stating what exactly their data was stolen, what the potential risks are, and where to seek help. ✈️ airBaltic I tried to very clearly explain one thing to TV viewers — it is NOT true that the government will now automatically give airBaltic 30 million euros again. The Saeima has given the government the opportunity to decide whether to lend money to the company together with private investors or not. If the state participates as a lender, then we can continue to sit at the same table where decisions about the company's future are made. No longer as owners or shareholders, but as lenders or bondholders. Because it is no secret — currently the state, as an airBaltic shareholder, has practically no real influence, and the value of our shares has effectively been lost. That's why it's important to at least retain the possibility to be at the table and know what will happen with the company next. 🇰🇷 Later in the day, I met with the Vice-Speaker of the National Assembly of the Republic of Korea, Park Duk-hyum. The conversation was very practical — not diplomacy for its own sake, but about concrete business, investments, and cooperation. ➖️ We discussed the MiCA regulation and Latvia's potential to become an even more significant financial and crypto-asset hub in Europe. Latvia already has its success stories here. ➖️ We agreed to develop the idea of Ādaži cooperation with a partner city in South Korea. 🇱🇻🤝🇰🇷 ➖️ I told about the advantages and uniqueness of the Sēlija military training ground, as well as Latvia's defense industry opportunities. ➖️ We also talked about Ķekava and specific cooperation opportunities. 💊 I see very good opportunities for Latvia's chemistry and pharmaceutical industry to cooperate with Korean companies in the production of active pharmaceutical ingredients and components. ⚡️ Particularly interesting — a South Korean company plans investments in a methane production plant and SMR (small modular reactor) technology. Latvia should be active here from the very beginning. And at the end of the conversation, I said a very simple thing: We, politicians, are paid also to bring together entrepreneurs, investors, and opportunities. Not only to talk about the economy, but to help create real deals. And it seems we are getting better and better at it. 💪

Day No. 62 (Thursday) in the prime minister's seat — AirBaltic address in the Saeima and the visit of the Lithuanian PM Who makes the prime minister's daily video? 🏛️ Thursday began with an address in the Saeima The speech was devoted to the vote on @airBaltic. I emphasized that this vote is vitally important for the airline — it is effectively the last chance to escape the debt burden that, until now, was not accumulated by attracting 380 million € in financing during the JV government and E. Siliņa's leadership. The positive signal — private financiers, not the state, are involved in attracting financing for AirBaltic. AirBaltic's future will no longer rest only on the state's shoulders. Thank you to the Saeima deputies who acted in a state-minded way by voting in support of saving AB, so that it can finally sort out its finances and debts before attracting a strategic investor. On Thursday, the first foreign visit of the Lithuanian PM took place — the new PM @mindaugassink visited Latvia. As is usual among Baltic neighbors, we discussed all our common "Baltics" 😉 — airBaltic, Rail Baltica, Via Baltica, as well as other common issues for Latvia and Lithuania. 🛡️ We particularly emphasized the common challenges: ➖️illegal migration; ➖️security on our external border; ➖️Latvia and Lithuania cooperation in border protection. 🚁 We had also planned to go together to the Latvia–Belarus border, but the weather made adjustments — due to heavy rain we could not fly by helicopter. I was ready to go by car, but the Lithuanian colleague chose not to go this time. No matter — next time. There are still plenty of border issues to address together. 🇱🇻🤝🇱🇹 The closer Latvia and Lithuania cooperate, the stronger the entire Baltics.

Day No.61 in the prime minister's chair 🇱🇻 BNI entrepreneurs, AirBaltic, government salaries and 5 hours on national security Wednesday started with a meeting with the President, but ended with a 5-hour-long National Security Council meeting, about the content of which I am not allowed to say much. 80 BNI entrepreneurs The day began with an early morning meeting with 80 entrepreneurs from 2 BNI clubs, where I had to answer very challenging and difficult questions in front of a full hall. I will always stand up for entrepreneurs, because they are the ones who pay all the bills in the country. Without strong entrepreneurs, there will be no strong and prosperous state. 🏛️ Meeting with the President We discussed several state-important issues. 🔐 CSDD incident and data leak ➖️ Board and council members cannot just receive often astronomical salaries. Along with the position and remuneration comes RESPONSIBILITY. ➖️ The President and I agree – at this scale of consequences, responsibility cannot end only with resignation. If harm has been done to the state and a threat has been created to people, legal responsibility must also be assessed. The Prosecutor General's Office is already working on it. I hope for a quick and fair process, because here we are also talking about the security of ALL state officials. ➖️ At the same time, other risks must be reduced. On the VID website, the database of officials' declarations is still publicly available, which can be used for profiling by connecting it with other databases and AI tools. This does not mean hiding the declarations! They are and must remain PUBLIC. But access can have at least minimal protection and traceability – for example, authentication with eParaksts, Smart-ID or https://t.co/kCHMBLvCE6. We preserve the public's right to know, but we should not leave the door wide open for mass data collection. ✈️ AirBaltic strategic plan ➖️ I emphasized that one of the most important tasks is to find a STRATEGIC INVESTOR specifically in the aviation sector. The Ministry of Finance must be tasked with actively seeking and attracting a strong industry player. ➖️ We agreed that AirBaltic remains a significant part of Latvia's economy. The Saeima and the government must do everything possible to prevent the airline from becoming insolvent. Kozlovskis and the Ministry of Transport's plan must be given a chance to work as a last resort to ensure that this time the company is saved by private capital, not again just by state money. 💶 Public sector salary increases and indexation for 2027 – WE CANCEL In a situation where tax revenues are not being met and the state is living on borrowing, further increasing spending on public sector salaries would be wrong. Especially at a time when salary levels in the public sector have already reached or even surpassed the private sector in many places. First, let's sort out state finances. Then we talk about new spending. Call with Moldovan Prime Minister Vasili Tofanu We discussed the two countries' positions on European enlargement. ➖️ My position is clear – the doors to Europe are open for Ukraine 🇺🇦 and Moldova 🇲🇩. Now the countries themselves must do their homework, continue reforms and adapt to European standards in order to be ready for EU membership. ➖️ Interestingly, we both come from the business environment. This very quickly allows finding common language – fewer diplomatic phrases, more about practical solutions and results. ➖️ We also discussed the future of Transnistria. A very interesting reality – about 73% of trade transactions already take place with the EU bloc, and about 235,000 people are closely connected to Moldova's economic space. Integration is already happening practically and peacefully in many places. ➖️ Moldova is also seriously concerned about Russia-created and funded electoral populism, disinformation, and attempts to influence public opinion. 🌾 For the first time summoned to the @ZZS_ faction. Like at school – to the principal 😄 I was questioned about AirBaltic for 1.5 hours. With full responsibility, I explained the figures, risks, possible scenarios, and what will happen with one or another Saeima decision. But, as I suspected, in the end it turned out that ZZS had already decided to vote AGAINST beforehand. So the question arises – why was an hour and a half of "hearing" needed? 🤷‍♂️ I feel sorry for my time. 🛡️ The day ended with a 5-hour-long National Security Council meeting. I will not publicly say much about the content, of course. But on security issues, Latvia currently has neither holidays nor the option to postpone anything to a later time. That was Day No.61.