Key facts
- Latvia's Prime Minister Andris Kulbergs is requesting €7 billion from the EU's next seven-year budget.
- The funds are intended to cover military and economic costs associated with confronting Russia.
- Kulbergs stated the money should come from a new Competitiveness Fund to offset higher defense spending and trade collapse.
- This demand comes ahead of Latvia's national election, where parties advocating for compensation are gaining ground.
- Kulbergs argued that Latvia is borrowing to provide security for Europe and that its military spending benefits Western European economies.
Latvian Prime Minister Andris Kulbergs is seeking €7 billion from the European Union to help cover the military and economic costs of confronting Russia. Kulbergs stated that the funds should be allocated from the EU's next seven-year budget under a new Competitiveness Fund, aiming to offset Latvia's increased defense spending and the collapse in trade with Russia since the full-scale invasion of Ukraine.
Kulbergs argued that Latvia, as a frontline nation, is bearing an disproportionate cost and is borrowing heavily to provide security for the entire continent. He noted that much of Latvia's military spending flows back to Western European economies through arms purchases. The demand comes at a politically sensitive time, with Latvia's national election approaching in October, where parties advocating for greater compensation for sanctions and military support are gaining traction.
Populist businessman Ainārs Šlesers, whose party is a potential coalition partner, echoed the sentiment, stating Latvia should demand support in return for backing EU sanctions. While Šlesers condemned the invasion and supported aid to Ukraine, he argued that Latvia is a "victim" of the economic fallout. He also suggested the eventual need to restore economic ties with Moscow.
Kulbergs also called for a total EU visa ban on Russian citizens and urged the EU to consider using Russia's frozen sovereign assets to fund Ukraine's reconstruction. He criticized European Council President António Costa's decision to open a communications channel with the Kremlin, deeming it a "useless exercise" without signs of Russian willingness to negotiate.
Despite Latvia's hawkish stance on Russia, Kulbergs expressed openness to reestablishing ties once Russia pays reparations and war crimes are addressed, drawing a parallel with postwar Germany. He anticipates that a ceasefire could lead to increased border insecurity and a wave of migration as soldiers return from the battlefield and Russia's war economy crumbles.