2024-05-03 22:35:47
The assessment was carried out by order of the Ministry of Environmental Protection and Regional Development (VARAM).
It concludes that the economies of the Baltic states felt the negative consequences of Ukraine“>Russia‘s invasion of Ukraine relatively more acutely than other EU member states.
This is influenced by the high energy dependence of the Baltic States on Russia, the decrease in the importance of the transport and logistics industry in the national economies, as well as the decreased desire of investors to invest in the Eastern border regions, which may have further consequences for the medium-term economic development of the countries.
Regarding the Eastern border of Latvia, the evaluation concluded that the consequences of Russia’s war of aggression in Ukraine have created economic isolation for the Latgale region from the Eastern and Southern directions, closing the previous transit corridors and export markets.
Taking into account that the cohesion policy of the less developed regions requires faster growth, increased attention should be paid specifically to the promotion of the competitiveness of this region.
Also, the evaluation reveals the opinions of entrepreneurs from various sectors of the countries under study about the impact of the war and the ways in which entrepreneurs were able to adapt to it. One of the important findings of the evaluation is that the region of the Baltic States is still quite unknown to foreign investors and buyers – in the context of the security situation and information about companies.
The evaluation revealed that often foreign customers do not understand the increase in the prices of goods, which occurred as a result of the impact of the war, and therefore choose other suppliers. Some companies have already been able to successfully reorient to other export markets, but in some sectors this has meant a significant increase in costs.
As reported, Prime Minister Evika Siliņa (JV) has issued an order on the creation of a special thematic committee in connection with the socio-economic development of Latvia’s eastern border and strengthening of security.
2024-05-03 22:35:47