Latvia has contributed €200,000 to the Ukraine Energy Support Fund, announced on December 17, 2025, to aid in restoring Ukraine's power grid severely damaged by ongoing Russian attacks. This support is crucial for maintaining energy resilience as winter approaches.
Latvia has contributed €200,000 to the Ukraine Energy Support Fund to aid in the restoration of Ukraine's power grid, which has been severely damaged by ongoing Russian attacks. The donation, announced by Latvian Foreign Minister Baiba Braže, underscores international efforts to bolster Ukraine's energy resilience ahead of winter.
Flydubai has inaugurated a new direct air route between Riga International Airport (RIX) and Dubai International Airport (DXB), operating three times a week. Launched on December 13, 2025, this service aims to significantly boost tourism, trade, and cultural exchange between Latvia and the United Arab Emirates, enhancing connectivity to the Baltic region.
Latvia has formally signed the Convention establishing the International Claims Commission for Ukraine in The Hague. This pivotal step, taken on December 16, 2025, aims to ensure compensation for damages caused by Russia's actions in Ukraine, forming the second pillar of a comprehensive international compensation mechanism.
Latvia's national transport authority, Autotransporta direkcija (ATD), has signed an €89.4 million contract with Škoda Group for nine battery-electric multiple-units (BEMUs). This investment aims to modernize the rail system, reduce emissions, and enhance eco-tourism, with the first trains expected by 2029.
Latvia's national transport authority, Autotransporta direkcija (ATD), has signed an €89.4 million contract with Škoda Group for nine battery-electric multiple-units. These new trains, set for delivery by 2029, will modernize the rail system, replace aging diesel fleets, and enhance eco-tourism by providing quieter, more environmentally friendly, and efficient travel options across the country.
Latvia's national transport authority, Autotransporta direkcija (ATD), has awarded Škoda Group an €89.4 million contract for nine battery-electric multiple-units (BEMUs). This initiative aims to modernize the country's rail system, replace aging diesel fleets, and enhance eco-tourism. The agreement includes an option for seven additional trains, potentially increasing the total investment to €160 million, with the first units expected to enter service by mid-2029.
Latvia's fintech sector experienced substantial growth in 2024, with 126 companies generating €369 million in local turnover and employing over 3,600 professionals. This expansion underscores Latvia's emergence as a key financial technology hub in the Baltic region.
flydubai has launched its first direct three-times-weekly service between Dubai International Airport and Riga Airport, commencing on December 12, 2025. This new route, operated by a Boeing 737, marks flydubai as the first UAE carrier to offer nonstop flights to Riga, significantly enhancing tourism, business, and cultural ties between the UAE and Latvia.
Polish President Karol Nawrocki visited Riga on December 11, 2025, for discussions with Latvian President Edgars Rinkevics. The leaders focused on regional security, defense cooperation, support for Ukraine, and strengthening economic ties, including infrastructure projects like Via Baltica and Rail Baltica.
Polish President Karol Nawrocki met with Latvian President Edgars Rinkevics in Riga on December 11, 2025, to discuss strengthening bilateral ties, regional security, defense cooperation, and economic initiatives. Key topics included bolstering NATO's eastern flank, addressing hybrid threats, and advancing major infrastructure projects like Via Baltica and Rail Baltica.
Latvijas Banka has issued the first Markets in Crypto-Assets (MiCA) license in Latvia to BlockBen SIA, enabling the company to offer a range of regulated crypto-asset services across Latvia and other EU member states. This marks a significant step for Latvia in becoming a regional fintech hub.
Latvia's Autotransporta direkcija (ATD) has signed a contract with Škoda Group for nine battery electric multiple units (BEMUs), with an option for seven more. Valued at €89.4 million for the base order, these trains will replace aging diesel units, enhance passenger comfort, and reduce emissions on non-electrified lines by 2029.
Latvia has established a new national heat record for December 10th, with temperatures reaching an unseasonably warm 9.3 degrees Celsius in Pāvilosta. This surpasses the previous record of 8.9 degrees Celsius set in Kolka in 1964, marking a continuation of unusually mild December weather across the country.
RIX Riga Airport and South Korea's Incheon International Airport Corporation Aviation Academy signed a cooperation memorandum on December 5, 2025. This partnership aims to significantly enhance global aviation training standards, boost RIX Academy's international visibility, and foster joint development of advanced training programs and instructor exchanges.
Bolivia has officially launched a new visa-free travel program for citizens of Latvia, the US, Israel, South Korea, South Africa, Estonia, and Romania, effective December 8, 2025. This strategic move aims to significantly boost the country's tourism sector and stimulate economic growth by removing previous travel barriers.
Norway and Latvia have signed a Memorandum of Understanding to develop a significant green hydrogen production facility in Liepāja. The project, involving over €550 million investment, aims for 150,000 tons annual production and will create at least 100 jobs, bolstering Latvia's energy independence and supporting EU decarbonization goals.
Latvia's Saeima has passed the 2026 state budget, projecting **EUR 16.1 billion** in revenues and **EUR 17.9 billion** in expenditures. Approved on December 4, 2025, the budget prioritizes national security, families with children, and education, with a projected deficit of **3.3% of GDP**. Finance Minister Arvils Ašeradens and Prime Minister Evika Siliņa emphasized increased defense spending and social support.
S&P Global Ratings reaffirmed Latvia's 'A' long-term sovereign credit rating with a stable outlook on November 28, 2025. The decision acknowledges Latvia's economic resilience and prudent fiscal policy despite increased defense spending and persistent geopolitical risks stemming from the Russia-Ukraine conflict. The stable outlook balances rising debt with rebounding economic growth.
The United Arab Emirates and Latvia have significantly strengthened their economic ties, marked by a recent high-level visit, the signing of a Memorandum of Understanding between their Chambers of Commerce, and plans to establish a joint Business Council by late 2025. This partnership aims to boost trade, investment, and cooperation across diverse sectors.
