Latvia Focuses on Export Diversification and Sanctions Enforcement
Latvian Foreign Minister Baiba Braže has emphasized the critical role of export diversification and stricter sanctions enforcement as key pillars of the nation’s economic strategy. Speaking at a recent meeting with the Latvian Chamber of Commerce and Industry (LCCI), Braže urged entrepreneurs to actively leverage EU trade agreements and available Foreign Ministry support to expand into new markets.
The Importance of Export Markets
Exports are the “backbone of Latvia’s economy,” according to Minister Braže. Here’s particularly true amidst ongoing global instability. The ability to adapt and find new markets, offering both established and innovative products, is paramount. Last year, the Foreign Ministry successfully advocated for reduced import tariffs for Latvian timber exports to the US, demonstrating a proactive approach to securing favorable trade conditions.
The focus isn’t simply on finding new markets, but likewise on strengthening existing transatlantic ties. Discussions at the LCCI meeting included transatlantic relations, the situation in Ukraine, and the Foreign Service’s capacity to support businesses navigating these complex geopolitical landscapes.
Reducing Trade with Russia and Belarus
A significant portion of the discussion centered on reducing trade with Russia and Belarus. Braže stressed the need for continued sanctions and a complete cessation of trade with these nations. The Foreign Ministry will continue to encourage Latvian and EU businesses to cease all commercial activity with Russia and Belarus, and to scrutinize export partners to prevent goods from reaching the Russian military industry.
Data indicates a clear downward trend in trade between Latvia and Russia. In the first eleven months of 2025, imports from Russia decreased by 73.5% compared to the same period in 2024, while exports fell by 8.7%. The number of Latvian companies exporting to Russia has decreased by 79.7% since 2021.
Supporting Ukraine
Latvian businesses have demonstrated support for Ukraine, assisting with the repair of critical energy infrastructure damaged by Russian attacks. Minister Braže expressed gratitude for this support, highlighting the importance of collective action in the face of aggression.
Did you know? Latvia’s Minister of Foreign Affairs, Baiba Braže, received the Ukrainian Order of Merit, Second Class, in November 2025, recognizing her significant contribution to strengthening cooperation between Latvia and Ukraine.
EU Agenda and Bureaucracy Reduction
The meeting also addressed broader EU issues, including the Multiannual Financial Framework (MFF), EU sanctions against Russia, EU trade policy, and efforts to reduce bureaucratic hurdles. The Foreign Service is actively consulting with Latvian businesses to shape Latvia’s national position ahead of negotiations on the next EU MFF.
Pro Tip: Latvian entrepreneurs should familiarize themselves with the support instruments offered by the Foreign Ministry, including grants, development cooperation projects, and trade agreements. Regular contact with the Foreign Service can provide valuable insights and opportunities.
Geopolitical Outlook
Minister Braže emphasized that there are currently no indications that Russia is prepared for peace. She stated that Russia’s objectives – to destroy Ukraine, divide allies, and threaten transatlantic security – remain unchanged. A firm stance of containment through sanctions, including targeting Russia’s shadow fleet, is essential.
Frequently Asked Questions
Q: What is Latvia’s position on trade with Russia?
A: Latvia is actively working to reduce and ultimately eliminate trade with Russia and Belarus, and is urging businesses to do the same.
Q: How is the Latvian government supporting businesses?
A: The Foreign Ministry provides support through grants, development cooperation projects, trade agreements, and consultations on EU policy.
Q: What is the current trend in trade between Latvia and Russia?
A: Trade between Latvia and Russia is declining significantly, with substantial decreases in both imports and exports.
Q: What role does the LCCI play in this process?
A: The LCCI collaborates with the Foreign Ministry on export promotion, preparing Latvia’s national position for the EU budget, and countering sanctions evasion.
Want to learn more about Latvia’s foreign policy initiatives? Visit the Ministry of Foreign Affairs website.
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