STOCKHOLM, Sweden – May 14, 2026 – A high-level Latvian delegation, led by Minister of Economics Viktors Valainis, has concluded a pivotal two-day visit to Sweden, laying the groundwork for a new era of cooperation in high-stakes sectors including defense, digital technology, and green innovation. Organized by the Investment and Development Agency of Latvia (LIAA), the visit has reinforced the already robust economic ties between the two Baltic Sea nations, signaling a concerted effort to enhance regional security and drive future-focused industrial growth.
The centerpiece of the visit was the Latvia–Sweden Business Forum in Stockholm, which drew over 200 participants, including more than 130 from Latvia. The event, alongside more than 130 individual business-to-business meetings, created a fertile ground for new partnerships. High-level discussions with global giants such as Amazon Web Services and defense contractor Saab underscored the strategic nature of the talks, focusing on digital infrastructure and advanced military technologies.
“Sweden is one of Latvia’s most important economic partners and the largest investor in our economy,” said Minister of Economics Viktors Valainis. “This visit was an important opportunity to strengthen long-term economic cooperation between our countries. Latvia’s economic growth is closely linked to exports, investment and the international competitiveness of our companies.”
A New Chapter in Baltic Defense
While the business forum focused on broad economic opportunities, the visit occurs against a backdrop of significantly deepening defense collaboration. Earlier this year, on January 16, 2026, the defense ministers of Latvia and Sweden signed a comprehensive “roadmap” to expand military cooperation across air, land, and sea domains. This strategic alignment, bolstered by Sweden’s recent accession to NATO, is already yielding tangible results.
Under the agreement, Sweden is set to deploy its advanced, long-range Archer artillery systems on Latvian soil this year, a move that includes joint training and future development of the platform. Furthermore, the partnership prioritizes the development of unmanned systems. Sweden has expressed strong interest in utilizing Latvia’s drone testing ranges and is planning a substantial €500 million investment in drone and unmanned systems R&D, with a focus on leveraging Latvian facilities.
Air defense cooperation is also a key priority, with ongoing discussions about the temporary deployment of Swedish-made Saab JAS 39 Gripen fighter jets in Latvia. As part of its NATO commitments, Sweden will continue its rotational deployment of a mechanized battalion to the NATO multinational brigade in Latvia, contributing critical air defense capabilities and participating in air patrol missions. This collaboration extends to maritime security in the Baltic Sea, where both nations plan to strengthen coastal protection, surveillance, and the security of vital underwater infrastructure.
The Bedrock of a Billion-Euro Partnership
The strategic push into defense and technology builds upon a formidable economic foundation. Sweden is by far the largest foreign investor in Latvia, with accumulated investments exceeding €7.7 billion as of 2025. This accounts for nearly a third of all foreign direct investment in the country. More than 500 Swedish companies operate across almost every sector of the Latvian economy, from financial services to manufacturing and retail.
This deep integration is reflected in trade figures. In 2025, the total trade turnover in goods and services between the two nations reached €2.6 billion, making Sweden Latvia’s fifth-largest trading partner. The relationship is seen by both sides as mutually beneficial, enhancing not just economic prosperity but also regional stability.
“Sweden is proud to be the largest investor in Latvia, with more than 500 Swedish companies operating across nearly all sectors of the Latvian economy,” stated Diana Janse, State Secretary to the Minister for International Development Cooperation and Foreign Trade of Sweden. “Through trade and investment, we are not only strengthening economic growth but also reinforcing our shared resilience and security.”
Showcasing Latvia’s High-Value Capabilities
The Latvian delegation was a testament to the country’s growing prowess in high-value industries. It included a diverse group of companies poised for international collaboration, demonstrating that Latvia is an innovative partner, not just a recipient of investment. Participants included industry leaders such as Latvijas Mobilais Telefons (LMT), a pioneer in 5G and IoT solutions; HansaMatrix, a high-tech manufacturer of complex electronic systems for industrial and defense applications; and UPB, a major industrial group with expertise in sustainable construction and advanced engineering.
The presence of companies like Ammunity, presumably focused on defense manufacturing, directly aligns with the expanded defense roadmap and the goal of developing integrated supply chains for munitions and other critical materials. Financial institutions like Citadele Bank were also present, signaling the readiness of the financial sector to underwrite and facilitate new cross-border projects and investments.
European Funds as a Catalyst for Cooperation
This surge in bilateral cooperation is significantly powered by European Union support. The visit was organized within the framework of the EU co-funded SME Innovative Business Development Programme and backed by the European Regional Development Fund (ERDF). These instruments are crucial for fostering cross-border business initiatives and helping member states achieve shared strategic objectives.
Latvia is a key beneficiary of the EU’s Cohesion Policy, with an allocation of €4.6 billion for the 2021-2027 period aimed at accelerating its green and digital transitions. For 2026 alone, investments from EU funds and the Recovery and Resilience Facility are projected to surpass €1.4 billion in Latvia. This includes a targeted €25.5 million to specifically strengthen the capabilities of the country’s defense industry, directly supporting the goals of the new partnership with Sweden.
This strategic use of EU funding highlights a multi-layered approach to regional development, where national initiatives are amplified by supranational support to enhance competitiveness, security, and integration across the Baltic Sea region. As noted by LIAA Director General Ieva Jāgere, the outcomes of the visit were immediate and promising. “We saw strong interest from Swedish companies and investors in Latvia and in the capabilities of Latvian businesses. The business forum, B2B meetings and investor discussions created concrete opportunities for cooperation in high value-added industries.”