This week, Baltic leaders visited Ukraine, urging allies to lift all arms restrictions. In Estonia, informal talks have begun on the next president, as the government plans to raise taxes. Latvia intends to borrow more and imposes more restrictions on Russians and Belarusians, while talks continue on the national air carrier. Lithuania’s Finance Ministry raises its GDP forecast, the Foreign Minister warns over China, and Russian opposition goes after each other.
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BALTIC
Baltic: Leaders visit Ukraine for Crimea Platform summit
Baltic leaders visited Ukraine for the Crimea Platform summit and bilateral meetings with Ukrainian counterparts. President Alar Karis of Estonia, PM Evika Silina of Latvia, and Foreign Minister Gabrielius Landsbergis of Lithuania reiterated their calls to lift all arms restrictions on Ukraine.
Baltic: Consultations with US on European, Indo-Pacific security
Baltic and US officials held high-level security consultations in the Lithuanian capital, Vilnius. The officials discussed the implications of Russia’s war in Ukraine for European and Indo-Pacific security.
Baltic: Hydrogen corridor to connect Baltic Sea countries by 2040: study
The Baltic States, Finland, Poland, and Germany should build a green hydrogen corridor by 2040, according to a study by the Nordic and Baltic gas transmission system operators. The corridor would transport up to 2.7 million tonnes of hydrogen fuel per year.
Baltic: Vacancies up in Lithuania, down in Latvia, Estonia in Q2/2024
The number of job vacancies in the Baltic States rose in Lithuania but fell in Latvia and Estonia in Q2/2024, according to statistics. The share of job vacancies was highest in Latvia and lowest in Estonia.
Baltic: Suicide rate remains highest in Lithuania in 2021: Eurostat
Lithuania had the highest suicide rate in the Baltic States in 2021, according to Eurostat data. Lithuania had 19.5 deaths by suicide per 100,000 inhabitants, followed by Estonia with 14.01 and Latvia with 13.38. The EU average stood at 10.2 suicides per 100,000 people.
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ESTONIA
Estonia: President Karis stresses checks and balances
President Alar Karis of Estonia stressed checks and balances in the country’s political system. Speaking at the opening of the autumn session of the Estonian parliament, he insisted that government powers must balanced by the courts, defending the rights of the opposition if need be.
Estonia: Corridor talks on next president: parliament speaker
Informal talks have started on a possible candidate for next president in Estonia, parliamentary speaker Lauri Hussar revealed. Incumbent Alar Karis is eligible for a second term, but has said that he does not intend to run.
Estonia: Former president wants to head Estonian Olympic Committee
The former president of Estonia, Kersti Kaljulaid, will run for president of the Estonian Olympic Committee (EOK). She said that EOK members had welcomed her ideas about the future of the organisation and Estonian sports.
Estonia: Right-Wingers re-elect Lavly Perling as party chair
Estonia’s liberal opposition party, Right-Wingers, has re-elected former prosecutor general Lavly Perling as its chairperson. Perling labelled the government a “coalition of three socialists.” Right-Wingers are offering a comprehensive cost-cutting plan instead.
Estonia: Foreign Ministry distances itself from China visit by MPs
The Foreign Ministry of Estonia distanced itself from a recent controversial visit by six Estonian MPs to China. A ministry spokesperson noted that Estonia’s ambassador to China had warned the MPs not to let China cover their travel expenses.
Estonia: New government bonds oversubscribed four times
Demand for new Estonian government bonds totalled EUR 821mn, which was four times more than the EUR 200mn offered, the Ministry of Finance announced. The bonds will mature on 16 September 2026, yielding a fixed annual interest rate of 3.3%.
Estonia: Flat tax-free income threshold to be postponed
Estonia’s Ministry of Finance has proposed postponing the introduction of a unified tax-free income threshold until 2026. The ministry said that this would ensure that Estonia’s state budget deficit did not exceed 3% as required under EU law.
Estonia: Government to raise alcohol, tobacco, fuel taxes by 5% per year
The Estonian government plans to raise excise duties on alcohol, tobacco, and fuel by 5% per year over 2025-2028. The government has given just three days for stakeholders to express feedback on the proposed tax changes.
Estonia: Government to support large-scale export projects
The Estonian government has agreed to provide EUR 160mn of state support for large-scale export-oriented investments in Estonia over 2025-2028. Eligible projects will have to include investments of at least EUR 100mn and create at least 100 jobs.
Estonia: Government agrees to buy ammo for EUR 1.1bn by 2028
The Estonian government has agreed to buy ammunition for EUR 1.1bn by 2028, Education Minister Kristina Kallas announced. Defence Minister Hanno Pevkur estimated that the government would purchase ammunition for a total sum of around EUR 3bn over 2022-2028.
Estonia: Government to allocate EUR 275mn for Rail Baltica
The Estonian government will allocate around EUR 275mn for the Rail Baltica railway project over the next four years, Infrastructure Minister Vladimir Svet announced. He said that the funds would come from the sale of CO2 quotas.
Estonia: Tartu-Riga train service not to open in October 2024
A new passenger train connection between Tartu in southern Estonia and the Latvian capital, Riga, will not open in October 2024 as planned. Certification of new Stadler FLIRT trains for operating on Latvian railways is taking longer than expected.
Estonia: Services exports, imports up 3% in Q2/2024: statistics
Estonia’s exports and imports of services both increased by 3% in Q2/2024, according to Statistics Estonia and the Bank of Estonia. Exports exceeded imports in most services.
Estonia: Highest salaries now offered to doctors: survey
Doctors now enjoy the highest salaries in Estonia, surpassing IT experts, according to recruitment portal CV Keskus. However, wages were disclosed in just 40% of the 8,800 job offers surveyed.
Estonia: Margus Linnamäe buys out business partner in MM Group
One of the wealthiest businessmen in Estonia, Margus Linnamäe, will buy out his business partner, Ivar Vendelin, in the MM Group investment company. Following the transaction, Linnamäe will own 98% of the group, which owns many major media brands across the Baltic States.
Estonia: Swedbank ex-CEO convicted over money laundering
A court of appeal in Sweden has sentenced former Swedbank CEO Birgitte Bonnesen to 15 months in prison over money laundering at the bank’s branch in Estonia. Bonnesen, who served as Swedbank’s CEO in 2016-2019, intends to appeal the ruling.
Estonia: Prisons may begin housing foreign inmates: Justice Minister
Estonia may begin housing foreign inmates in its prisons, which stand half-empty due to low crime rates, Justice Minister Liisa Pakosta said. She estimated that the state could earn EUR 30mn per year from renting out prison space to countries like the Netherlands, Sweden, and the UK.
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LATVIA
Latvia: State Treasury plans to borrow at least EUR 3bn annually
The Latvian state will have to borrow at least EUR 3bn annually for the next four years, Kaspars Abolins, head of the State Treasury, said. The plan is to raise the money through various instruments, including around EUR 2bn per year via bonds issued on international financial markets.
Latvia: State debt to remain below 50% of GDP: State Treasury
Latvia’s state debt will remain below 50% of GDP in the coming years, Kaspars Abolins, head of the Latvian State Treasury, assured. The country’s state debt in now stands at just over EUR 18bn, which is around 44% of GDP and one of the lowest in the EU.
Latvia: Gas storage hub to open for Lithuania, Estonia, Finland
Latvia will allow Lithuania, Estonia, and Finland to store their strategic natural gas reserves at the underground storage facility in Incukalns. The facility’s operator, Conexus Baltic Grid, plans to auction 8 TWh of total storage capacity.
Latvia: Enhanced border security mode extended until end of 2024
The government of Latvia has extended the reinforced border protection regime on the country’s border with Belarus until the end of 2024. Authorities prevented 4,210 persons from crossing the border illegally in the first eight months of 2024.
Latvia: Russian drone that crashed in eastern Latvia carried explosives
The Russian drone that crashed in eastern Latvia was an Iranian-designed Shahed drone carrying explosives, the Latvian National Armed Forces (NBS) announced. NBS will assess its actions during the incident.
Latvia: Government to restrict purchase of land by Russians
The government in Latvia plans to restrict the ability of Russians to buy land in the country. The government will analyse similar draft legislation in Finland.
Latvia: Parliament bans Belarusian cars as of November 2024
The Latvian parliament has passed amendments that ban cars registered in Belarus from Latvia. Belarusian vehicles need to be reregistered in Latvia or taken out of the country by 31 October 2024. Cars failing to comply risk being confiscated and donated to Ukraine.
Latvia: Islamic State supporter suspected of planning terror attacks
Latvia’s State Security Service (VDD) has asked to charge a non-citizen Latvian resident for planning terrorist attacks in Latvia. VDD’s investigation established that the man supports the Islamic State terrorist group.
Latvia: Lufthansa may invest in airBaltic: report
German airline Lufthansa may invest in Latvia’s national air carrier, airBaltic, Bloomberg reports. Sources said that negotiations on the potential deal were still at an early stage.
Latvia: RB Rail to start talks with investors on financing Rail Baltica
The coordinator of the Rail Baltica railway project, RB Rail, will start talks with private investors on financing the project’s implementation in Latvia at the end of 2024. EU funds for the project are running out.
Latvia: Transport Minister refuses to resign despite criticism
Transport Minister Kaspars Briskens of Latvia has no intention to resign despite criticism of his communication. Earlier, President Edgars Rinkevics and PM Evika Silina criticised the minister’s messaging on the future of national airline airBaltic and the Rail Baltica railway project.
Latvia: MPs fail to criminalise corruption in public procurement
The Latvian parliament has rejected proposed legislation that would have introduced criminal liability for corruption in public procurement. The Prosecution Office, the Corruption Prevention and Combating Bureau, the Competition Council, and the US Embassy all expressed regret at the parliament’s decision.
Latvia: Housing prices up over 1% on year in Q2/2024: statistics
Average housing prices in Latvia rose by 1.1% on year in Q2/2024, the Central Statistical Bureau reports. Prices of new housing increased by 11.4%, whereas the average price of old housing dropped by 2.0% over a year. Compared to Q1/2024, housing prices rose by 2.3%.
Latvia: Number of job vacancies down 5.6% on year in Q2/2024
The number of job vacancies in Latvia was 23,900 in Q2/2024, which was 1,400 (5.6%) fewer than a year earlier, the Central Statistical Bureau reports. The number of vacancies was down 10.7% in the private sector but up 1.1% in the public sector.
Latvia: Stricter rules on workplace language requirements planned
The Latvian parliament plans to introduce stricter rules on workplace language requirements. The amendments aim to strengthen the role of the Latvian language in the labour market. Many employers in Latvia still require that staff speak Russian.
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LITHUANIA
Lithuania: GDP to rise by 2.3% in 2024, 2.9% in 2025: Finance Ministry
Lithuania’s GDP will grow by 2.3% in 2024 and 2.9% in 2025, according to the Finance Ministry’s revised forecast. Finance Minister Gintare Skaiste said that the economy was “rather healthy” and that there was therefore “no need for belt-tightening” in 2025.
Lithuania: President criticised over treaties with Russia, Belarus
Lithuania’s Foreign Minister, Gabrielius Landsbergis, criticised President Gitanas Nauseda for delaying a decision to end investment protection treaties with Russia and Belarus. Landsbergis noted that Russia had a strong interest in maintaining the treaties.
Lithuania: Foreign Minister warns EU against China deals
Lithuanian Foreign Minister Gabrielius Landsbergis criticised other EU countries for continuing to do business with China. He noted that Lithuania was an example that it was “possible to survive” without gas from Russia and deals with China.
Lithuania: Deputy Economy Minister visits Taiwan to seek investments
Lithuania’s Deputy Minister of Economy and Innovation, Karolis Zemaitis, has visited Taiwan to seek investments. Several Lithuanian ministers have paid visits to Taiwan recently.
Lithuania: 15,500 professional, 50,000 reserve troops by 2030
Lithuania will have 15,500 professional military personnel and 50,000 soldiers in the active reserve by 2030 under the Defence Ministry’s new plan. The ministry plans to introduce universal conscription as of 2028.
Lithuania: Agreement on rights of German troops signed
Lithuania and Germany have signed an agreement on the rights of German troops, civilian personnel, and their families in Lithuania. Germany plans to deploy a brigade of around 5,000 troops in Lithuania by 2027.
Lithuania: Minister urges NATO to fund Ukraine’s defence industry
Defence Minister Laurynas Kasciunas of Lithuania urged NATO to form a coalition to fund the defence industry of Ukraine. Lithuania will allocate EUR 10mn to Ukraine for the acquisition of long-range weapons manufactured in Ukraine. Kasciunas urged other countries to do the same.
Lithuania: Government joins US initiative to strengthen cyber security
Lithuania has joined the US-led international initiative on strengthening cybersecurity. The initiative aims to counter the proliferation and misuse of commercial spyware.
Lithuania: Lithuanian firm used in Russian influence campaign in US
Some internet domains used by Russia to meddle in the upcoming US presidential elections were purchased using Lithuanian cryptocurrency platform CoinGate, FBI announced. The Russian influence campaign promoted former president Donald Trump.
Lithuania: Most Lithuanians prefer Harris over Trump: poll
Most Lithuanians favour Kamala Harris in the US presidential elections, according to a new poll. The survey showed that 66% of Lithuanians favoured Harris, while 12% preferred ex-president Donald Trump.
Lithuania: Homeland Union urges LSDP to reject new far-right party
The leader of Lithuania’s Homeland Union, Gabrielius Landsbergis, called for talks with the opposition Social Democratic Party of Lithuania over fears about support for the far-right Dawn of Nemunas. Landsbergis warned that the new party could change Lithuania’s direction away from the West.
Lithuania: Russian opposition activists attacking each other
The attack on Russian opposition activist Leonid Volkov in Lithuania in March 2024 was allegedly ordered by another Russian opposition leader, Leonid Nevzlin, according to the Anti-Corruption Foundation (FBK). The group claimed that the plan was to kidnap Volkov and take him to Russia.
Lithuania: 36,000 foreigners denied residence in January-August 2024
The Lithuanian Migration Department (LMD) denied residence to 36,000 foreigners in M8/2024 amid tighter rules on immigration. LMD received 67,175 residence permit applications in eight months. The number of foreigners in Lithuania totals 220,000, with 116,000 having work permits.
Lithuania: New law to mandate Lithuanian in customer service
Lithuania may oblige foreign workers to serve customers in Lithuanian. Under the proposed bill, the language requirement would apply to employees who have direct contact with clients. The new rules are due to come into effect in January 2026.
Lithuania: Employers now more welcoming towards returning expats
Employers in Lithuania are more favourable than before towards Lithuanian emigrants who are returning to the country, according to a survey. Most returning expats are coming back to Lithuania from the UK, Ireland, Germany, and Norway.
Lithuania: TPG may invest in fashion marketplace Vinted: report
US private equity group TPG is in talks to invest in Lithuanian second-hand fashion platform Vinted, FT reports. The deal would value the company at EUR 5bn.
Lithuania: Tesla plans to open permanent stores in early 2025
US electric car maker Tesla has opened its first pop-up store in Lithuania at the Akropolis shopping mall in Vilnius. The company plans to open a permanent store and service centre in Vilnius in early 2025.
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