It is a time of transformative change for the Baltic region, according to Spridzans, Snipe & Hramcenko Partner Ansis Spridzans, considering important developments like the Rail Baltica project connecting Tallinn, Riga, and Vilnius in the Baltic states with Central Europe, the growth of fintech and cutting-edge finance, and the impact of ESG on the Latvian banking and finance sector.
"Rail Baltica is a headline project in the Baltic region, aiming to connect Tallinn or even Helsinki to Warsaw," Spridzans begins. "Its construction phase is significantly affecting various industries, including legal, due to extensive land disputes, procurement, employment, and many other issues." As he describes it, "it is a transformative time for the region, presenting both challenges and opportunities in the legal area."
Focusing on the baking and finance sector, Spridzans reports it is "at a pivotal juncture, especially with the new Environmental, Social, and Governance regulations becoming increasingly prevalent." According to him, "the Central Bank of Latvia is using its influence, albeit softly, to push the industry towards these standards. This shift towards ESG, away from the previous focus on money laundering, signifies a major change in priorities." On this account, he says he expects next year to be particularly active as the importance of ESG continues to rise.
Furthermore, Spridzans highlights there is a "noticeable spike in the activity of licensing non-banking institutions, including electronic money platforms, crowdfunding, and peer-to-peer platforms. This growth can be attributed to the Latvian regulator's special competence and the experienced local workforce, positioning Latvia as a hub for such financial innovations," he explains.
Taking aim at the wider fintech start-up scene in Latvia, as well as the Baltic countries overall, Spridzans reports it is "thriving, thanks to new investments and an increasing number of ventures. My involvement with the Latvian Business Angels Association has allowed me to witness the strong growth in startups firsthand – this surge in interest, even among people who are not high-net-worth individuals, in supporting new ideas is fostering a dynamic entrepreneurial ecosystem," he shares.
Finally, Spridzans shares an observation: "The current geopolitical situation has significantly strengthened business ties between Latvia and Ukraine. We're seeing an influx of Ukrainian businesses relocating to the Baltic states, along with an increase in Ukrainian products in our markets – and vice versa. The establishment of companies, which was less common a few years ago, is now happening at a rapid pace, highlighting a fast-evolving cross-border business landscape," he concludes.
