At the Cabinet of Ministers (CM) meeting on 25 November, a draft order prepared by the Ministry of Economics (MoE) and amendments to Cabinet regulations were approved, enabling the provision of additional support for Ukraine’s reconstruction and the recovery of economic activity. A total of EUR 4 million is planned to be allocated for this purpose in 2025 and 2026.
To strengthen the ability of Latvian companies to participate in international reconstruction projects, the draft order prepared by the Ministry of Economics provides for the reallocation of EUR 2 million in 2025 to the MoE programme “State Aid Programmes”. The funding will be used to provide loans to Latvian companies for investments and working capital.
Support will be available to companies whose projects involve the production of goods, the provision of services or the acquisition of company shares, where such activities contribute to the reconstruction of Ukraine’s infrastructure and the recovery of its economy.
“Ukraine is an important cooperation partner for Latvia, and in the current situation, when devastating warfare is taking place in Ukraine, it is particularly important to provide support that helps ensure the reconstruction of destroyed cities and the restoration of economic activity. We are committed to providing long-term assistance and actively engaging in international coordination mechanisms that promote Ukraine’s reconstruction and further development. The strong interest of Latvian entrepreneurs in cooperating with Ukraine was also demonstrated by the large business delegation that, together with officials from the Ministry of Economics, visited Ukraine in 2024,” emphasised Minister of Economics Viktors Valainis.
At the same meeting, the Cabinet of Ministers also approved amendments submitted by the Ministry of Economics to Cabinet Regulation No. 1065 of 15 September 2009, “Regulations on Loans for Promoting the Development of Micro, Small and Medium-sized Economic Operators and Agricultural and Forestry Service Cooperative Societies”.
The draft Cabinet regulation provides for the allocation of EUR 4 million (EUR 2 million in 2025 and EUR 2 million in 2026) to support Latvian-registered companies in making investments in projects for the reconstruction of Ukraine’s infrastructure that contribute to the recovery of Ukraine’s economic activity and regional development.
Taking into account the current needs of Ukraine’s reconstruction and economic recovery, support will be prioritised for the energy sector, manufacturing, as well as information and communication technologies (ICT). The issuance of loans will be ensured by JSC Development Finance Institution Altum, which will assess project applications and grant loans for both investments and working capital.
Such support will help Latvian companies become more competitive and participate in important international reconstruction processes.