Latvian Political Monitor

@LatvianBeckham @Gundars_Abolins It will be... everything must be ready

I'm flying home from the 2nd Lapland Arctic Summit, where together with all the Nordic, Baltic, Icelandic, German, and French leaders we had a heated, important discussion about the strategic importance of the Arctic, security, the Russian threat, EU interests, and reducing dependency on resource extraction. Together with Estonia and Lithuania, we are united in defending the interests of the Baltic states.

Ukraine will not be intimidated or isolated! This was once again clearly demonstrated by the Yalta European Strategy, or @yes_ukraine, conference in Kyiv, where friends and partners of Ukraine from many countries around the world gathered in person. 🤝 This year's conference theme – “Peace Through Strength NOW” – precisely describes the main task of the moment: Ukraine needs strength to stop Russia and achieve a just and lasting peace. I am often asked why I travel to Ukraine during the war. My answer does not change – it is important for me to stand alongside not only in words and not only from a safe distance. To meet in person the people who live through this war every day, to hear what they need, and to understand what Latvia can do even more and faster. This visit also included heartfelt reunions with friends, colleagues, and acquaintances, open discussions with Ukraine's Minister of Justice Denys Maslov, Deputy Chairman of the Verkhovna Rada Olena Kondratiuk, members of parliament, representatives of the justice system, and non-governmental organizations. With many of them, over the years, not only professional cooperation but also genuine human trust has developed. In Kyiv, air raid alerts are part of daily life, and war fatigue is felt. But even stronger is Ukrainians' determination not to give up and to continue the fight against obscurantism. They defend not only their own country but the freedom and security of Europe. Therefore, while Ukraine fights, Latvia must stand ready to act. ℹ️ YES is one of the most significant international forums on Ukraine's future in Europe. It unites politicians, diplomats, entrepreneurs, soldiers, civil society representatives, and experts to strengthen international support for Ukraine and agree on practical action.

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

@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.

This morning's interview with EuroNews about Eastern flank security, about Russian aggression and provocations; Russia is increasing cruise missile production, which is only possible because the West continues to supply electronic components = a complete ban must be introduced. So it turns out some profit, while the whole EU overpays for anti-missile systems for Ukraine.

@Ulddi It is denied. The deadline has not yet arrived, there is no delay. And after determining Chapter 11 status, no one can do that anymore.

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.

The largest creditors have also been published. There, for example, the state-owned company 'Latvian Environment, Geology and Meteorology Centre' appears with 42 million. What is that? Those are the famous CO2 quotas, a fine for the fact that the company flies and burns fossil fuel. They must be bought on the market and submitted to LVĢMC (the deadline is now September). So that the paperwork is in order. There are no sensible alternatives, all airlines pay. Not long ago, aviation lobbyists asked the European Commission not to apply the quotas, but the answer was a categorical no.

And this is a significant nuance. In Latvia's TAP, a bankruptcy administrator would be appointed. In the US procedure it is not so - management continues work.

That is our legislator's choice. Basically the same throughout the EU. Practically all sectors are funded from excise and VAT, including defense, health, education. Even part of pensions (service pensions and bonuses for length of service, for example).

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

@IvarsRimsa Long gone. Burned long ago. You cannot recover burned stubble. The last crumb of 30 million was given in spring and went there, to pay bills.

@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.

In Kyiv, with Ukrainian Prime Minister Serhiy Koretskyi ( @KoretskyiUA ), we agreed to continue work to strengthen practical cooperation between Latvia, Lithuania, and Ukraine. 🇱🇻🇱🇹🤝🇺🇦 On Ukraine's path to the European Union, implementing rule-of-law and justice reforms is one of the central tasks that will determine the speed of the accession process. Together with Lithuania's Justice Minister Rita Tamašunienė, we expressed readiness to continue supporting Ukraine's reform implementation, while the cooperation memorandum signed by the Latvian and Ukrainian justice ministries provides a concrete framework for this – sharing Latvia's experience in justice sector reforms. We also discussed necessary solutions to strengthen economic pressure on Russia. We presented Latvia's proposed solutions for restricting Russian grain transit at the Baltic level. Our goal is to prevent Russia from using Baltic transport infrastructure to bolster its export revenues and finance the war. Latvia will continue advancing this issue together with Lithuania and Estonia. With the new Ukrainian Minister of Agriculture Taras Vysotskyi, we agreed to continue work on grain origin control and restricting Russian grain flows. Special attention will also continue to be paid to defense industry cooperation. We agreed on next steps for Latvian and Ukrainian companies to develop and localize defense technology production in Latvia – both for Latvia's and NATO's needs, and to strengthen Ukraine's defense capabilities. The framework for this cooperation is provided by the Latvian-Ukrainian agreement on defense cooperation signed by Latvia's Prime Minister and Ukraine's President in June. At the same time, we are preparing for a difficult winter in Ukraine. Latvia will continue to provide practical support in areas where it is most needed and coordinate this support with the Ukrainian government. This visit once again confirmed that Latvia-Ukraine cooperation is becoming increasingly practical – we are strengthening Ukraine's ability to defend its country, while also strengthening Latvia's and NATO's security.

Ukraine's path to the European Union requires consistent implementation of rule of law and anti-corruption reforms. 🇺🇦🇪🇺 In Kyiv, together with Olena Kondratiuk, Deputy Chairperson of the Verkhovna Rada of Ukraine, we agreed to continue close cooperation to maintain the pace of reforms, fully utilize the currently open accession negotiation phase, and accelerate Ukraine's path to the European Union. ⚖️ It is especially important now to ensure that the adopted reforms are fully implemented in practice and that the justice institutions maintain their independence and strengthen their capacity. We also discussed the most important ways, in Ukraine's view, to ensure Russia's accountability for international crimes, and the status of establishing a Special Tribunal. A political decision must be followed by practical action. Currently, the detailed funding calculation from the Netherlands is awaited in order to move forward with the practical establishment of the Tribunal. Latvia is ready to join the Expanded Partial Agreement. The Baltic states will continue to coordinate their actions in the European Union to strengthen pressure on Russia, expand restrictive measures, and ensure that the consequences of aggression are not left on Ukraine's shoulders. Latvia will continue to be a practical and reliable partner. Ukraine appreciates that. The Deputy Chairperson of the Verkhovna Rada expressed readiness to continue sharing Ukraine's experience in crisis preparedness and resilience building. @Ole_Kondratiuk @ua_parliament

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.