Latvia and Estonia deepen defence and economic ties with landmark supply-security pact as Latvian President Edgars Rinkēvičs begins a state visit to Tallinn, underscoring the strategic importance of Baltic cooperation in an era of heightened regional security challenges.

On the first day of the Latvia–Estonia Business Forum “Stronger Together” in Tallinn, Latvian Minister of Economics Viktors Valainis and Estonian Minister of Economic Affairs and Industry Erkki Keldo signed a Memorandum of Understanding on supply security and strategic state reserves, formalising a framework for joint crisis preparedness and resource coordination. The agreement, which follows a 2025 intergovernmental accord, establishes structured cooperation between Latvia’s state-owned asset manager Possessor and Estonia’s State Reserve Agency, with a 2026–2028 Joint Action Plan detailing fuel reserve management, electricity supply resilience, and EU-level strategic reserve initiatives .

Speaking at the forum’s opening, Valainis said the pact represents “a concrete step towards strengthening Latvia’s and Estonia’s resilience against supply chain disruptions and crisis situations,” adding that closer cooperation in strategic reserves and fuel supply ensures mutual reliability when it matters most. The forum, held at the National Library of Estonia, also highlighted defence and dual-use technologies as key areas for future collaboration.

The visit took on added geopolitical significance on Wednesday, when Rinkēvičs and Estonian President Alar Karis met on Ruhnu Island to discuss progress on Rail Baltica, the EU-funded railway linking Helsinki, Tallinn, Riga, and Warsaw. Karis stressed the project’s strategic importance for regional connectivity, economic integration, and military mobility, while acknowledging the need to address past management challenges and secure EU funding for the next planning period. “Rail Baltica is crucial not only for economic cooperation and passenger traffic but also for military mobility,” Rinkēvičs said, noting that Latvia’s new government has prioritised the project .

Karis also emphasised the broader value of regional connectivity, calling for stronger energy links, digital cooperation, and transport networks to enhance resilience and attract investment. “A well-connected region is stronger, more resilient, and more attractive to both people and businesses,” he said, highlighting the deep trust between Estonian and Latvian entrepreneurs, scientists, and communities as the foundation of bilateral relations.

The visit coincides with Estonia’s growing profile within NATO, where Estonian Prime Minister Kristen Michal described the country as “probably the best partner to Türkiye in the Nordics and Baltics,” citing deepening defence industry ties and Ankara’s support for Baltic air security during the 36th NATO summit in Ankara. Michal highlighted Estonia’s role as a reference market for Turkish armoured vehicles and the expansion of bilateral military production, including ARCA Defense’s plans to manufacture 155mm artillery ammunition in Estonia .

Meanwhile, Latvian defence technology firm SUBmerge Baltic signed a memorandum of understanding with France’s Naval Group to integrate its autonomous underwater drones into Naval Group’s Steeris unmanned platform management system, enhancing interoperability with allied naval forces. Kārlis Bērziņš, co-founder of SUBmerge Baltic, said the partnership would expand the applicability of the company’s “Pike” drone in military and civilian roles, including mine countermeasures, port inspections, and search-and-rescue operations .

As the Latvian-Estonian Business Forum continues, the two countries are positioning themselves as a unified front in addressing regional security, economic resilience, and infrastructure development, with both presidents reaffirming the Baltic Sea’s historic role in fostering trust and cooperation.

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