Due to the war in Ukraine triggered by Russia, risks to Latvia are increasing, and with them the needs of the army, which private manufacturers cannot fully satisfy. This primarily concerns the production of ammunition. To secure and control the production of these strategically important goods, the Ministry of Defence proposes establishing a new state-owned enterprise.

The informative report reviewed by the government on Tuesday is not public. The Ministry of Defence explains that it contains information for official use—for example, regarding ammunition shortages within the Latvian Armed Forces.

"We can see that now, with the war in Ukraine, a very significant deficit has developed. For some components, one actually has to wait for half a year or a year. Not to mention the ammunition itself. Therefore, realising that if the situation remains as it is, the building up of stocks for the armed forces could be hindered," explains the State Secretary of the Ministry of Defence, Jānis Garisons.

To address these shortages, the Ministry of Defence proposes that the state gets involved in defence production by establishing a new capital company. (...)
Photograph by Benjamin Everett used