Latvia seeks 7 billion euros from the EU to cover defence spending and the costs of cutting ties with Russia

Brussels – Seven billion euros to help cover the costs associated with defence and the severing of trade ties with Russia: this is what the Latvian Prime Minister, Andris Kulbergs, is asking of the European Union. In an interview with Politico, Kulbergs explained that these funds should be allocated through the Competitiveness Fund as part of the upcoming long-term EU 2028-2034 budget (MFF). In particular, they would help cover both the increased costs incurred by the Latvian defence sector – given that the country shares a border with Russia and its airspace is constantly breached – and the economic repercussions of severing ties with Moscow.

 The Prime Minister reiterated that the seven billion, together with the other funds allocated to Latvia, would account for almost half of the 15.12 billion euros in defence spending that the Riga government plans to spend over the same period. “We are pushing our budget deficit to the limit and, with that debt, we are paying for the defence of the whole of Europe,” Kulbergs also stated, pointing out that a large part of Latvia’s spending “goes back west,” through arms purchases from Germany, France, Spain, Sweden, and the Netherlands. In fact, “we fuel their economies”, he added. 

The issue of the costs incurred by Latvia in its standoff with Moscow is emerging in the broader context of the parliamentary elections scheduled for 3 October. At the helm of the right-wing, conservative party “Latvia First”, Ainārs Šlesers – a Member of the European Parliament sitting with the European group Patriots for Europe – argues that Riga should seek compensation when it supports EU sanctions against Russia. Also in an interview with Politico, the MEP clarified that, whilst condemning the Russian invasion and supporting continued aid to Ukraine, “the economic cost to Latvia” cannot be considered unlimited. According to the conservative politician, the state is losing money and “we talk about how to support Ukraine, but we are a victim,” he concluded.