External relations, enlargement, neighbourhood policy foreign policy of latvia concentrates on clearly defined

priorities and fields of interest. in the past few years principal attention of foreign policy was devoted to the following:

• pursuing national interests in the European Union;

• expanding the Baltic states cooperation, with special focus on seeking joint solutions, in line with Latvia’s interests, in trilateral energy and defence projects;

• strengthening Nordic-Baltic cooperation in all areas of interstate cooperation;

• building relations with Germany and Poland in a targeted manner;

• carrying out objectives defined in the NATO Strategic Concept;

• making external economic relations more dynamic through more effective efforts of diplomatic missions, enhancing cooperation with competent institutions in the area of economic cooperation (including future OECD membership), organising visits for companies to traditional and new markets, setting up a required legal framework;

• strengthening strategic partnership with the United States in security policy matters and in exploring possibilities for expanding economic cooperation;

• support for reinforcing stability and democracy in the Eastern Partnership countries;

• furthering relations with the Russian Federation;

3.4. Energy policy

Very strong and actively represented latvian interests in the area of energy and energy policy are defined first of all by the fact that the country is heavily dependent on external energy resources. in 2009, the gross energy consumption of latvia was 4.33 million tonnes of oil equivalent of which nearly 59% was originating from abroad. With this energy dependency ratio the country is above the EU27 average.²²

most of the energy in latvia is consumed by households (39% which is higher than the EU27 average), followed by the transport sector (26% – lower than the EU average).

the share of industry is 17%, which is below the average.

Services consume 15%, agriculture 3% and both data are around the EU27 level. as far as the energy mix of the country is concerned, the share of renewable sources is high (37%), followed by petroleum products (30%) and gas (28%). the shares of electricity and of solid fuels are small (3 and 2% respectively), finally, there is no nuclear power production in the energy mix.

in the field of energy policy on the EU level, latvia supports all initiatives aiming at improving security of supplies, diversification of supplier countries and regions.

high priority of the country is – similarly to its Baltic neighbours – ending the isolation of the Baltic gas and energy market, developing secure interconnections with other EU members, increasing energy efficiency, maintaining and extending the share of renewable resources. latvia supports the proposal to give the EU energy sector bigger weight in the upcoming mff. at the same time, the country stresses that transition to the carbon-free economy will require additional funds at the EU level.

22 Energy Portal of the EU

3.5. External relations, enlargement, neighbourhood policy foreign policy of latvia concentrates on clearly defined priorities and fields of interest. in the past few years principal attention of foreign policy was devoted to the following:

• pursuing national interests in the European Union;

• expanding the Baltic states cooperation, with special focus on seeking joint solutions, in line with Latvia’s interests, in trilateral energy and defence projects;

• strengthening Nordic-Baltic cooperation in all areas of interstate cooperation;

• building relations with Germany and Poland in a targeted manner;

• carrying out objectives defined in the NATO Strategic Concept;

• making external economic relations more dynamic through more effective efforts of diplomatic missions, enhancing cooperation with competent institutions in the area of economic cooperation (including future OECD membership), organising visits for companies to traditional and new markets, setting up a required legal framework;

• strengthening strategic partnership with the United States in security policy matters and in exploring possibilities for expanding economic cooperation;

• support for reinforcing stability and democracy in the Eastern Partnership countries;

• furthering relations with the Russian Federation;

• seeking solutions to facilitating cooperation with the diaspora abroad;

• providing support to Latvian citizens and permanent residents abroad and ensuring travel for foreign nationals with the purpose of activating economic and tourism relations.²³

concerning the European Union, the following latvian interests have been formulated:

• the necessity of overcoming economic crisis in Europe;

• identifying interests and launching consultations on more beneficial conditions in the EU’s multiannual financial framework, in view of the impact by EU-funded policies on Latvia’s economy;

• preparations for the Latvian presidency of the Council of the European Union;

• communication of topical EU matters to the public;

• including in the EU programme documents the projects of priority for Latvia;

• preserving Schengen as an area for free movement.²⁴

latvia continues its engagement in the EU’s security and defence policy. riga is convinced that the EU should concentrate more on strategic interests and new types of threats and devote special attention to raising the implementation effectiveness of the security strategy. the improvement of the EU and nato relations and a deepening of strategic partnership in all levels is a priority for the

23 Ministry of Foreign Affairs of the Republic of Latvia, Annual Report (2012) 24 Ibid.

country. the broadening agendas of both organisations and growing operational demand determine the need for joint solutions and harmonisation of efforts, especially, in the area of building and developing capabilities, their mutual complementarity and potential deployment in international operations within the same territory.²⁵

latvia has participated with its staff in the following EU missions: the EU rule of law mission in kosovo (EUlEX koSoVo) with one expert, the EU monitoring mission in georgia with two civilian experts. the latvian observers have also been placed in gori, near South ossetia. latvia also participates with three experts in the EU police mission in afghanistan (EUpol afghanistan). in addition, latvia supports the implementation of the EU naval operation (EU naVfor atalanta) and the expected extension of its mandate. riga gives financial contribution to the budget of operations without deploying its military contingent. this is also the case with latvia’s participation in the military mission for training the Somali Security forces (EUtm Somalia) and contributing the joint budget of the EU military operation in Bosnia and herzegovina (EUfor althEa).²⁶

Enlargement of the EU is seen by the latvian political leaders as a means to secure stability in Europe. latvia supports the enlargement process based on individual approach and the fulfilment of the accession criteria. riga played an active role in the accession process of croatia by according general political support, by mediating in resolving the Slovene-croatian conflicts and by sharing its accession experience. latvia clearly supports the accession of the Western Balkan countries too, considering their

25 Ministry of Foreign Affairs of the Republic of Latvia: The EU Common Security and Defence Policy

26 Ministry of Foreign Affairs of the Republic of Latvia: Participation in international operations

• seeking solutions to facilitating cooperation with the diaspora abroad;

• providing support to Latvian citizens and permanent residents abroad and ensuring travel for foreign nationals with the purpose of activating economic and tourism relations.²³

concerning the European Union, the following latvian interests have been formulated:

• the necessity of overcoming economic crisis in Europe;

• identifying interests and launching consultations on more beneficial conditions in the EU’s multiannual financial framework, in view of the impact by EU-funded policies on Latvia’s economy;

• preparations for the Latvian presidency of the Council of the European Union;

• communication of topical EU matters to the public;

• including in the EU programme documents the projects of priority for Latvia;

• preserving Schengen as an area for free movement.²⁴

latvia continues its engagement in the EU’s security and defence policy. riga is convinced that the EU should concentrate more on strategic interests and new types of threats and devote special attention to raising the implementation effectiveness of the security strategy. the improvement of the EU and nato relations and a deepening of strategic partnership in all levels is a priority for the

23 Ministry of Foreign Affairs of the Republic of Latvia, Annual Report (2012) 24 Ibid.

country. the broadening agendas of both organisations and growing operational demand determine the need for joint solutions and harmonisation of efforts, especially, in the area of building and developing capabilities, their mutual complementarity and potential deployment in international operations within the same territory.²⁵

latvia has participated with its staff in the following EU missions: the EU rule of law mission in kosovo (EUlEX koSoVo) with one expert, the EU monitoring mission in georgia with two civilian experts. the latvian observers have also been placed in gori, near South ossetia. latvia also participates with three experts in the EU police mission in afghanistan (EUpol afghanistan). in addition, latvia supports the implementation of the EU naval operation (EU naVfor atalanta) and the expected extension of its mandate. riga gives financial contribution to the budget of operations without deploying its military contingent. this is also the case with latvia’s participation in the military mission for training the Somali Security forces (EUtm Somalia) and contributing the joint budget of the EU military operation in Bosnia and herzegovina (EUfor althEa).²⁶

Enlargement of the EU is seen by the latvian political leaders as a means to secure stability in Europe. latvia supports the enlargement process based on individual approach and the fulfilment of the accession criteria. riga played an active role in the accession process of croatia by according general political support, by mediating in resolving the Slovene-croatian conflicts and by sharing its accession experience. latvia clearly supports the accession of the Western Balkan countries too, considering their

25 Ministry of Foreign Affairs of the Republic of Latvia: The EU Common Security and Defence Policy

26 Ministry of Foreign Affairs of the Republic of Latvia: Participation in international operations

membership perspective and accession process as an essential tool contributing to the success and continuity of their economic, social and political reforms. the minister of foreign affairs recently stressed that riga welcomes the launching of EU accession negotiations with montenegro, as the country has achieved considerable progress with introducing the rule of law and fighting corruption and organised crime. at the same time, he added that there was still a lot to be done for montenegro to fully comply with the copenhagen criteria.²⁷ latvia fully supported granting candidate status to Serbia at the European council meeting in march 2012. at the same time, riga advocated carrying out a feasibility study, which looks at the potential of concluding a stabilisation and association agreement between the EU and kosovo that should serve as the next step towards regional stability.²⁸

for the country it is particularly important to further develop close relations with the eastern neighbours by way of implementing joint projects in the framework of the Eastern partnership (Eap). riga supports the advancement of the negotiations on deep and comprehensive free trade agreements with those countries that are ready to meet the necessary conditions. latvia also makes efforts to resolve the problems of visa free circulation of citizens of interested countries. according to the latvian position it is vital to take a differentiated approach in this process. the EU should provide more support to those partner countries, which are more successful and faster in their reforms. latvia highly commends the commitment of moldova and georgia to implement reforms and their progress in negotiations with the EU on free trade agreement and on visa liberalisation.

Besides the framework developed by the EU, latvia

27 Ministry of Foreign Affairs of the Republic of Latvia, press release of 1 June 2012 28 Ministry of Foreign Affairs of the Republic of Latvia, press release of 28 February 2012

established and maintains active bilateral relations with the Eap countries and encourages their European orientation.²⁹

although riga emphasises its interests in developing first of all Eastern partnership, according to latvia, the future financing of the programmes for the European neighbourhood regions (southern and eastern countries) must take into account the commitments taken on the political level and also the geographical balance between those regions.