Sanctions are currently relevant as a foreign policy tool and as an institution of law. For Latvia, as a border state with Russia and Belarus, the monitoring and enforcement of restrictions imposed by the sanctions are particularly relevant.

As of January 1, 2023, new rules regulating exclusion grounds will be applicable in Latvian procurements. This comes after the Latvian Competition Council discovered a bid-rigging scheme in the construction sector involving almost all of the largest Latvian construction companies. Notably, the period of exclusion will be extended, and the commencement date will be brought forward.

Latvia’s commercial real estate market saw a high volume of transactions in the past few years, involving shopping centers, stores, offices, and other types of properties. Cobalt Managing Partner Dace Silava-Tomsone, Ellex Klavins Partner Ilga Gudrenika-Krebs, and BDO Law Head of Legal Raivis Leimanis chart the market’s performance in a foggy 2022. 

The past two years have brought about tectonic shifts across all industries, business sectors, and economies. Adapting to the ever-changing concept of a “new normal” became an everyday task, and law firms were no exception. Motieka & Audzevicius Partner Rokas Jankus, iLaw Lextal Managing Partner Tomas Bagdanskis, and Sorainen Managing Partner Laimonas Skibarka share how Baltic firms have managed to hold their own in these challenging times.

Cobalt has advised Latvenergo on its EUR 50 million issuance of six-year green bonds with a fixed annual interest rate and a yield to maturity of 4.952%.

Ellex has successfully represented TD Trans before the Senate of the Supreme Court of Latvia in a cassation claim regarding a Riga Regional Court ruling on the breach of the unfair competition prohibition, where almost EUR 30,000 in loss compensation was awarded.

Cytowski & Partners has advised Trace.Space on its USD 1.5 million pre-seed financing round led by Fiedler Capital and including Foreward, Charlie Sanghurst, and Andris Berzins from Change Ventures.

TGS Baltic has advised Eco Baltia on its inaugural EUR 8 million issuance of three-year bonds. Eversheds Sutherland acted as trustee for the issuance.

Sorainen has helped BITE Latvija obtain the rights to use frequencies enabling 5G services.

Sorainen has advised the Riga Energy Agency on the development of a concept and business model for the Riga Energy Efficiency Fund.

TGS Baltic has advised Vilnius-headquartered renewable energy company Green Genius on its acquisition of a 100-megawatt solar PV project in Latvia.

Sorainen has advised Tietoevry on its lease agreement with developer Capitalica for office space in the Verde office center in Riga's Skanste district.

Cobalt has advised Lightrock and Haniel on leading a USD 30 million investment round into Aerones. 

Cobalt, working with Clifford Chance, has advised joint lead managers Deutsche Bank, Citigroup Global Markets Europe, Erste Group, and Nomura Financial Products Europe on the EUR 750 million issuance of five-year eurobonds by the Republic of Latvia. Allen & Overy reportedly advised the Treasury of the Republic of Latvia.

Ellex has helped Merito Partners set up and launch its Merito Management AIFP alternative investment fund structure in Latvia.

Adon Legal has advised Lithuanian real estate developer Galio Group on receiving financing from Latvia's SEB Banka to complete the development of the Riga-based Gustavs Business Center.

Ellex has advised AS CleanR Group on its completed acquisition of SIA RSC Noma. Sole practitioner Nauris Durevskis advised the sellers.

Much like in other countries in the region, Latvia experienced a strong finish to 2022, with bustling M&A activity being driven primarily by the current geopolitical and economic developments, according to Vilgerts Partner Julija Jerneva.