The Ukrainian-Latvian Business Forum, held at the Ukrainian Chamber of Commerce and Industry in Kyiv, marked a shift in how the two countries engage. While it was previously predominantly about support, the focus is now on practical cooperation—with specific projects, manufacturing, and long-term economic ties.
One of the key signals is that Latvia is openly positioning itself as a platform for Ukrainian companies to enter European markets. This applies not only to the local market but also to access the Baltics, Scandinavia, and the wider EU economic area.
For its part, Ukraine remains attractive as a market characterized by both scale and agility: demand, reconstruction challenges, and the ability to adapt solutions quickly create an environment that complements more structured European approaches.
At the government level, a transition from humanitarian interaction to economic partnership has already been established. This means launching joint production facilities, cooperative projects, and investment initiatives.
In the defense sector, this has a clear logic: the first stage involves government-to-government interaction, followed by a transition to direct business relationships.
The memoranda signed at the forum between the Latvian Investment and Development Agency (LIAA) and Ukrainian associations are another signal that the process is moving into a practical phase.
A specific focus noted by representatives of Promavtomatyka is the dependence on external suppliers, particularly Chinese components. At the industry level, this is no longer just an economic issue but a strategic risk: supplies can be restricted or halted at any moment.
Ukraine is already moving toward localization but does not yet meet all its needs—particularly when it comes to complex components and materials. This opens up opportunities for joint manufacturing, but at the same time, it requires serious investment and coordination.
Another important aspect is the change in product status.
Many civilian solutions are being used by the military today, which automatically reclassifies them into the category of dual-use goods. Along with this, the level of regulation is increasing.
The risk is that excessive restrictions could slow down development and exports. Therefore, the key issue is to find a balance between security and market access.
A rather pragmatic assessment voiced at the forum suggested that up to 70–80% of new defense companies could disappear after the war ends. The reason is the lack of stable demand in foreign markets.
Hence the logical conclusion: work on diversification needs to happen right now—both in terms of products and markets.
For Ukrainian manufacturers, this forum provides several specific benchmarks:
- entering the EU happens through partnerships rather than independent exports
- Latvia can serve as an effective gateway for market entry and scaling
- defense projects require integration into government frameworks
- localization of production is becoming a critical condition for growth
- the dual-use sector requires dedicated attention to regulation and compliance
- diversification of products and markets is not a strategy for later, but an immediate priority
Ultimately, it is no longer about “entering the European market” as an end goal, but about establishing a meaningful role within it through cooperation, joint manufacturing, and technological partnerships.
