   
  
G/SCM/N/401/EU/Add.16  
 
30 October  2023 
(23-7308) Page: 1/32 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union dated and received on 
14 July 2023 relates to the subsidy programmes of Latvia . 
 
_______________  
  G/SCM/N/401/EU/Add.16  
 
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  TABLE OF CONTENTS  
1  ON APPLICATION OF  TAXES IN FREE PORTS AND SPECIAL ECONOMIC ZONES  ............  4 
2  SUPPORT TO INVESTMENTS FOR DEVELOPMENT IN THE SPECIALLY ASSISTED  
AREAS  ................................ ................................ ................................ ..............................  4 
3  DEVELOPMENT OF NEW  PRODUCTS AND TECHNOLOGIES – AID FOR  
IMPLEMENTATION OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION  ................  5 
4  CLUSTERS PROGRAMME (2014 -2020 PLANNING PERIOD PROGRAMME)  ......................  6 
5  COMPETENCE CENTRES (2014 -2020 PLANNING PERIOD PROGRAMME)  .......................  7 
6  BUSINESS INCUBATORS  ................................ ................................ ...............................  8 
7  EXTERNAL MARKETING – STRENGTHENING INTERNATIONAL  
COMPETITIVENESS OF INDUSTRIES  ................................ ................................ ................  9 
8  CORPORATE INCOME TAX RELIEF ................................ ................................ ...............  10 
9  INVESTMENT LOANS FOR MICRO, SMALL AND MEDIUM -SIZED ENTERPRISES  
AND COOPERATIVE PARTNERSHIPS WHICH PROVIDE AGRICULTURAL SERVICES  
FOR RISING DEVELOPMENT  ................................ ................................ ...........................  11 
10  MICRO -LOANS PROGRAMME  ................................ ................................ .....................  11 
11  BUSINESS START -UPS PROGRAMME  ................................ ................................ ........  12 
12  PARALLEL (MEZZANINE) LOANS ................................ ................................ ...............  13 
13  PORTFOLIO GUARANTEES  ................................ ................................ ........................  13 
14  NEXT GENERATION NETWORK FOR RURAL A REA ................................ .....................  14 
15  SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING COMPETITIVENESS  
OF ENTERPRISES – SUPP ORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP 
(2014  - 2020 PLANNING PERIOD PROGRAMME)  ................................ ............................  15 
16  OPEN CALL FOR PROJECT APPLICATIONS "APPLIED RESEARCH PROGRAM"  ............  16 
17  OPEN CALL FOR PROJECT APPLICATIONS "POST -DOCTORAL RESEARCH AID"  .........  17 
18  VENTURE CAPITAL  ................................ ................................ ................................ ... 18 
19  ACCELERATOR FUNDS  ................................ ................................ ..............................  19 
20  SHORT -TERM EXPORT CREDIT INSURANCE  ................................ ..............................  20 
21  MID-TERM AND LONG -TERM GUARANTEES  ................................ ...............................  20 
22  INNOVATION MOTIVATION PROGRAMME  ................................ ................................  21 
23  CONTACT POINTS OF TRANSFER OF TECHNOLOGIES  ................................ ...............  22 
24  PROMOTION OF EFFECTIVE USE OF ENERGY RESOURCES, REDUCTION OF  
ENERGY CONSUMPTION AND TRANSFER TO RES IN  MANUFACTURING INDUSTRY  .........  23 
25  SUPPORT TO ELECTRICITY PRODUCTION  ................................ ................................ . 24 
26  SUPPORT FOR PROCESSING OF AGRICULTURAL PRODUCTS  ................................ .... 25 
27  SUPPORT FOR INVESTMENTS IN CREATION AND DEVELOPMENT OF 
NON-AGRICULTURAL ACTIVITIES  ................................ ................................ ..................  26 
28  SUPPORT FOR THE STRENGTHENING OF LOCAL ECONOMICS  ................................ ... 26 
29  THE LOAN PROGRAMME FOR RURAL ECONOMICS, AGRICULTURAL AND  
FISHERIES ECONOMIC OPERATORS  ................................ ................................ ...............  27 
30  NORWEGIAN FINANCIAL MECHANISM 2014 -2021 PROGRAMME "BUSINESS 
DEVELOPMENT, INNOVATIONS AND SMES"  ................................ ................................ ... 28 
31  STATE AID FOR AGRICULTURE PRODUCTION - COVID -19 MEASURES  ......................  29 G/SCM/N/401/EU/Add.16  
 
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  32  STATE AID FOR AGRICULTURE PRODUCERS – SUPPORT TO MITIGATE  
NEGATIVE EFFECTS OF WAR IN UKRAINE  ................................ ................................ ...... 30 
33  STATE AID FOR PROCESSING SECTOR OF AGRICULTURAL PRODUCTS –  
SUPPORT  TO MITIGATE NEGATIVE EFFECTS OF WAR IN UKRAINE  ................................ . 30 
34  EUROPEAN MARITIME AND FISHERIES FUND (EMFF) 2014 -2020 SUPPORT  .............  31 
35  EUROPEAN MARITIME , FISHERIES AND AQUACULTURE FUND (EMFAF)  
2021 -2027 SUPPORT  ................................ ................................ ................................ ..... 32 
  G/SCM/N/401/EU/Add.16  
 
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  1  ON APPLICATION OF TAXES IN FREE PORTS AND SPECIAL ECONOMIC ZONES  
1. Period covered by the notification  
2021-2022. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development. According to the national legislation only enterprises 
having signed the agreement with the Board of Special Economic Zones and Free Ports about the 
realization of business activities and initial investments in the territory of both special economic 
zones and free ports, may apply tax rebates.  
3. Background and authority for the subsidy  
Law on the Application of Taxes in Free Ports and Special Economic Zones.  
Authority for the subsidy: the Sta te Revenue Service and relevant municipalities.  
4. Form of the subsidy  
Tax relief.  
5. Annual amount of the subsidy  
Corporate Income Tax (CIT) and Real Estate Tax (RET) reliefs applied according to the data as of 
26 April 2019:  
− in 2015 – EUR 11.082 million;  
− in 2016 – EUR 8.159 million.  
CIT and RET reliefs applied according to the data as of 12 March 2021:  
− in 2017 – EUR 11.507 million ; 
− in 2018 – EUR 2.328 million ; 
− in 2019 – EUR 2.800 million ; 
− in 2020 – EUR 0.639 million.  
 
CIT and RET reliefs applied according to the data as of 20 July 2023:  
− in 2021 – EUR 5.241 million.  
CIT and RET reliefs applied according to the data as of 12 May 2023:  
− in 2022 – EUR 5.006 million.  
6. Duration of the subsidy  
2002 - 2035.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
2  SUPPORT TO INVESTMENTS FOR DEVELOPMENT IN THE SPECIALLY ASSISTED AREAS  
1. Period covered by the notification  
2016 - 2022.  G/SCM/N/401/EU/Add.16  
 
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  2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development.  The aim of the measure is to promote the expansion 
of manufacturing industry and the development of new economic operators by supporting the 
creation of industrial spaces in regions.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 227 "Operational programme "Growth and 
Employment" particular specific objective 3.1.1."To promote the creation and development of SMEs, 
in particular in the manufacturing and RIS3 priority sectors" 3.1.1.5. m easure "Support for 
Investment in Establishment or Reconstruction of Production Premises and Infrastructure" the first 
round" of 12  April 2016 (amendments by the Regulation of the Cabinet of Ministers No. 241 of 
3 May 2017, No. 34 of 21 January 2020, No. 2 46 of 28 April 2020, No. 481 of 28 July 2020, No. 5 
of 11 January 2022, No. 664 of 25 October 2022 ). 
The Regulation of the Cabinet of Ministers No. 612 "Operational programme "Growth and 
Employment" particular specific objective 3.1.1." To promote the creat ion and development of SMEs, 
in particular in the manufacturing and RIS3 priority sectors" 3.1.1.5. measure "Support for 
Investment in Establishment or Reconstruction of Production Premises and Infrastructure " the 
second round" of 25 September  2018 (amendm ents by the Regulation of the Cabinet of Ministers 
No. 474 of 28 July 2020, No. 825 of 17 December 2020. No. 663 of 5 October 2021, No. 717 of 
26 October of 2021, No. 843 of 21 December 2021).  
Authority for the subsidy: the Ministry of Economics, the Central Finance and Contracting Agency.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
2017 - total grant amount – EUR 2.601 million.  
2018 - total grant amount - EUR 1.750 million.  
2019 - total grant amount – EUR 0.327 million.  
2020 - total grant amount – EUR 0.82 million.  
2021 - total grant amount – EUR 0.162 million.  
6. Duration of the subsidy  
2016 - 2022.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
3  DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES – AID FOR IMPLEME NTATION 
OF NEW PRODUCTS AND TECHNOLOGIES IN PRODUCTION  
1. Period covered by the notification  
2016, 2017, 2018, 2019, 2020.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development. The activity is aimed at supporting development of 
new products or technologies in manufacturing. Within the framework of the activity financing is 
provided to operator's initial investment in fixed assets directly ensuring imp lementation of new 
products or technologies in the industry: new equipment acquisition costs, intangible assets (patents G/SCM/N/401/EU/Add.16  
 
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  and licenses, acquisition costs). The maximum allowable funding effort of the project's total eligible 
costs for large – 35%, medium -sized enterprises – 45% and micro, small enterprises  – 55%.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 293 Regulation on the Operational Programme 
"Growth and Jobs" measure 1.2.1.4. Introduction of new products in  production was developed and 
designed with the special purpose to foster the increase in productivity and competitiveness of 
businesses by developing and introducing new products and technologies in production, as well as 
increasing investments of the pri vate sector in R&D&I. The aid provided to experimental production 
facilities within the programme is a significant contribution to the Latvian economy, providing 
companies the possibility to increase their competitiveness in the local and export market. Th e 
support is granted for the manufacturing or purchasing, as well as installation and testing in real 
production environment of experimental technologies, ensuring that at least 20% of the 
experimental technology are unique components and no more than 80% of components or 
equipment of the experimental technology have been chosen from those available in the market. 
During the first open call (12 July – 12 September 2016) 17 projects were approved of total funding 
EUR 25.8 million. During the 2nd open call (2 1 November – 12 April 2018.) 29 projects were 
approved of total funding EUR  35.78 million. Within the programme it is planned to attract at least 
EUR 70 million private funding for R&D activities.  
Authority for the subsidy: the Ministry of Economics, the Central Finance  and Contracting  Agency.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
ERDF: EUR 45.12 million (2016 - 2023).  
6. Duration of the subsidy  
2016 - 2023.  
4  CLUSTERS PROGRAMME (2014 -2020 PLANNING PERIOD PROGRAMME)  
1. Period covered by the notif ication  
2017, 2018, 2019, 2020., 2021.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development ( de minimis aid). The purpose of the measure is to 
facilitate the cooperation between sector's unrelated entrepreneurs a nd institutions of education, 
research and development thus promoting growth of competitiveness, export, innovation and 
development of new products of industries.  
Support is given to a foundation performing functions of a cluster where at least 20 entrepre neurs 
are involved as well as institutions of science, education, etc.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 205 Operational program "Growth and Employment" 
3.2.1. specific support objective "Increase high -value -added products and services export ratio" 
3.2.1.1. measure "Cluster Programme" implementing rules of the first project selection round.  
(amendments by the Regulation of the Cabinet of Ministers No. 702 of 24 November 2020, No.  861 
of 21 December 2021 ). G/SCM/N/401/EU/Add.16  
 
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  Authority for the subsidy: the Ministry of Economics, the Central Finance and Contracting Agency.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
2017 – total amount – EUR 1.228 million.  
2018 – total amount – EUR 1.299 million.  
2019 – total amount - EUR 1.447 million.  
2020 – total amount - EUR 1.143 million.  
2021 – total amount – EUR 0.914 million.  
2022 – total amount – EUR 0.792 million.  
6. Duration of the subsidy  
2017 – 2021.  
7. Statistical data permitting an assessment of the trade effects of th e subsidy  
N/A. 
5  COMPETENCE CENTRES (2014 -2020 PLANNING PERIOD PROGRAMME)  
1. Period covered by the notification  
2017, 2018, 2019, 2020, 2021, 2022 . 
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development. The purpose of t he measure is to increase the 
competitiveness of entrepreneurs facilitating cooperation between research and industry with design 
to implement research, new products and technologies development projects.  
Support is given to a Competence centre – a legal p erson established by at least five unrelated 
industry entrepreneurs or recognized cooperative societies for agricultural services.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 2 Operational program "Growth and Job s" 1.2.1. 
specific support objective "Increase private sector R&D investment" 1.2.1.1. measure "Support for 
development of new products and technologies in competence centres" the first, second and fourth 
project selection rounds implementing rules" of 5 J anuary 2016 (amendments by the regulation of 
the Cabinet of Ministers No. 598 of 3 October 2017, No. 270 of 8 May 2017, No. 620 of 
2 October  2018, No. 478 of July 27).  
Authority for the subsi dy: the Ministry of Economics, the Central Finance and Contracti ng Agency.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
2017 – total grant amount – EUR 9.608 million.  
2018 – total grant amount – EUR 9.518 million.  
2019 – total grant amount – EUR 8.237 million.  
2020 – total grant amount – EUR 12.087 million.  G/SCM/N/401/EU/Add.16  
 
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  2021 – total grant amount – EUR 12.999 million.  
2022 – total grant amount – EUR 8.853 million.  
6. Duration of the subsidy  
2016 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
6  BUSINESS INCUBATORS  
1. Period cover ed by the notification  
2016 – 2022. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development ( de minimis aid). The purpose of the measure is 
provide support in the development of new, viable and competitive enterprise s. Incubators provide 
individuals and enterprises with the working environment, consultations, events and training on 
general business issues, mentor support, as well as grants necessary for starting or developing a 
business.  
3. Background and authority for t he subsidy  
Regulation on the operational programme "Regional business incubators and Creative Industries 
Incubator" of the Activity 3.1.1.6. "Regional business incubators and the Creative Industries 
Incubator" of the Specific Aid Objective 3.1.1. "Facilita te SME creation and development, particularly 
in the manufacturing industry and RIS3 priority sectors" of the ERDF Operational Program "Growth 
and Employment" of 3 May 2016 (amendments by the Regulation of the Cabinet of Ministers 
No. 279 – 26 January 2018 , 1 February 2019, 10 April and 1 August 2020, 3 March, 30 October and 
24 December 2021, 20 July 2022).  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy  
Subsidized services.  
5. Annual a mount of the subsidy  
2017 – total grant amount – EUR 39,915.  
2018 – total grant amount – EUR 697,684.  
2019 – total grant amount – EUR 1,652,329.  
2020 – total grant amount – EUR 3,118,082.  
2021 – total grant amount – EUR 5 ,231,728. 
2022 – total grant amount – EUR 4 ,756,000.  
6. Duration of the subsidy  
2016 – 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. G/SCM/N/401/EU/Add.16  
 
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  7  EXTERNAL MARKETING – STRENGTHENING INTERNATIONAL COMPETITIVENESS OF 
INDUSTRIES  
1. Period covered by the notification  
2016 – 2022. 
2. Policy objective/to whom the subsidy is provided  
The programme nurtures competitiveness of Latvian companies and entrepreneurs. S upport can be 
provided for the following activities, among others:  
• participations in nationals and international exhibitions with own stall/booth;  
• participation in entrepreneurship -related conferences and seminars , forums, contact 
exchange  abroad, if parti cipant gives a presentation about their product or service;  
• participation in trade mission abroad;  
• participation in international visits of high government officials of Latvian;  
• evaluation of production and product compliance ; 
• adaptation of products/servic es to foreign markets;  
• participation in international digital industry platforms;  
• membership in international industry associations;  
• publicity in foreign industry media;  
• the development of websites, online stores, digital solutions of applications and virt ual 
communication platforms  
Consultations with the Investment and Development Agency of Latvia representatives abroad.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 678 Operational programme "Growth and 
Employment" particular specific objective 3.2.1. "To increase export proportion of high value added 
products and services" 3.2.1.2. measure "Promotion of International Competitiveness" of 
1 December  2015 (amendments by the Regulation of the Cabinet of Mini sters No. 801 of 
22 December  2015, No. 649 of 4 October 2016, No. 240 of 3 May 2017, No. 688 of 
28 November  2017, No. 497 of 7 August 2018, No. 676 of 5 November 2018, No. 70 of 
12 February  2019, No. 204 of 9 April 2020, No. 482 of 28 July 2020, No. 305 of  13 May 2021, 
No. 255 of 19 April 2022, No 451 of 14 July 2021 ). 
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
2016 - total grant amount – EUR 4.203 million.  
2017 - total grant amount – EUR 10. 695 million.  
2018 - total grant amount – EUR 12.038 million.  
2019 - total grant amount – EUR 5.048 million.  
2020 - total grant amount – EUR 5.359 million.  
2021 - total grant amount – EUR 2.513 million.  
2022 - total grant amount – EUR 4.282 million.  
6. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. G/SCM/N/401/EU/Add.16  
 
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  8  CORPORATE INCOME TAX RELIEF  
1. Period covered by the notification  
2017 – 2018.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development. The purpose of the measure is to contribute to an 
attraction of foreign direct investments as well as to the development of new products and 
technologies and introduction of them in the production.  
Support is given to enterprises investing at least EUR 10.000 million in tangible assets related to the 
extension of an existing establishment, diversification of the output of an establishment into new 
products and services and a fundamental change in the overall pr oduction process of an existing 
establishment.  
3. Background and authority for the subsidy  
Article 17.2 of the Law on Corporate Income " Tax Rebate  for Initial Long -term Investments Made 
Within the Scope of Supported Investment Projects " (adopted on 20 Decembe r 2010, amendments 
on 15  December 2011, 6 June 2013, 6 November 2013, 4 December 2014, 23 November 2016).  
The transitional provisions of the Corporate Income Tax Law, which came into effect on 
1 January  2018, refer to the application of Article 17.2 of the  Law on Corporate Income Tax and the 
application of the Regulations of the Cabinet of Ministers, dated of 3 January 2017, No 20 "Procedure 
for the Adoption and Implementation of Supported Investment Projects".  
Authority for the subsidy: State Revenue Servi ce/the Ministry of  Finance . 
4. Form of the subsidy  
Tax relief.  
5. Annual amount of the subsidy  
Investment project was approved for the application of tax relief in 2017 – 6 projects.  
In 2018 were approved 8 investment projects.  
6. Duration of the subsidy  
The decisions on approval of investment projects for the application of tax relief were taken until 
31 December  2018. On 1 January 2018 The Corporate Income Tax Law came into  effect. The 
Corporate Income Tax  Law determines that an investment project applic ation might be submitted 
to the Ministry of Economy by 31 December 2017. The investment project applications received by 
the deadline within a period of 12 months were evaluated and directed to the Government for taking 
a decision regarding the granting of  a corporate income tax allowance.  Period of approved 
investment project could last until 2023.  
Duration of the application of tax relief is planned for maximum 16 years starting taxation period 
when the investment proje ct has been implemented.  
7. Statistical  data permitting an assessment of the trade effects of the subsidy  
N/A. G/SCM/N/401/EU/Add.16  
 
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  9  INVESTMENT LOANS FOR MICRO, SMALL AND MEDIUM -SIZED ENTERPRISES AND 
COOPERATIVE PARTNERSHIPS WHICH PROVIDE AGRICULTURAL SERVICES FOR RISING 
DEVELOPMENT  
1. Period covered by the notificatio n 
2017 and 2023.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development ( de minimis  aid). The Regulation is to improve access 
to financing by the registered performers of economic activity in Latvia, thereby promoti ng the 
development of the economy of the Republic of Latvia.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 1065 "Regulations Regarding loans for promoting the 
development of micro, small and medium sized merchants and agricultural service co -operative 
societies" of 15 September 2009 (amendments by the Regulations of the Cabinet of Ministers 
No. 949 of 5 October 2010, No. 184 of 13 March 2012, No. 1434 of 10 December 2013, No. 416 of 
22 July 2014, No. 772 of 16 Decem ber 2014, No. 588 of 13 October 2015, No. 278 of 3  May 2016, 
No. 595 of 10 October 2017, No . 265 of 21 June 2019, No. 186 of 8 April 2020, No.  237 
30 April 2020, No. 749 of 16 November 2021, No. 108 of 7 March 2023 ). 
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Soft loan.  
5. Annual amount of the subsidy  
From 2016 to 31.12.2022, within the framework of the program, ALTUM has issued loans of 
217,442  million in the  amount of EUR . 
6. Duration of the subsidy  
2014 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
10  MICRO -LOANS PROGRAMME  
1. Period covered by the notification  
2016 – 2022.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development ( de minimis aid). The aim is to increase the possibility 
of micro -financial support to business start -up and development, thus contributing to the 
development of Latvian economy. Loans are given to mi cro-enterprises.  G/SCM/N/401/EU/Add.16  
 
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  3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers No. 328 Regulations for micro -loans and start -up loans 
of 31 May 2016 (amendments by Regulation of Cabinet of Ministers No. 57 of 1 February 2018, 
No. 249 of 9 May 2018, No. 718 of 26 November 2018, No. 238 of 30 April 2020, No. 499 of 
18 June 2020, No. 214 of 13 April 2021 ). 
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Soft loan.  
5. Annual amount of  the subsidy  
By 2022, 170 micro -loan were issued for EUR 2.5 million.  
6. Duration of the subsidy  
2014 – 2022. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
11  BUSINESS START -UPS PROGRAMME  
1. Period covered by the notification  
2016 – 2022. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: the aim of the de minimis aid programme is to increase economic activity in the 
country, to develop knowledge and skills of business start -up, as well as to provid e the necessary 
financial support for business start -up. 
Support is given to newly established enterprises and private persons planning to start commercial 
activity.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers No. 328 Regulations for micro -loans and start -up loans 
of 31 May 2016 (amendments by Regulation of Cabinet of Ministers No. 57 of 1 February 2018, 
No. 249 of 9 May 2018, No. 718 of 26 November 2018 No. 238 of 30 April 2020, No. 499 of 
18 June 2020, No. 214 of 8 April 2021).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Soft loan.  
5. Annual amount of the subsidy  
By 2018, 405 start -up loans were issued for EUR 9.5 million.  
By 2020, 427 start-up loans were issued for EUR 10.9 million.  
By 2022, 515 star -up loans were issued for EUR 14.4 million.  G/SCM/N/401/EU/Add.16  
 
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  6. Duration of the subsidy  
2014-2022. 
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
12  PARALLEL (MEZZANINE) LOANS  
1. Period c overed by the notification  
2017 – 2023.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for regional development. The aid programme is aimed to provide Latvian 
entrepreneurs long -term financing in addition to the granted loan. Parall el loans is a long -term 
financing instrument, subordinated to a loan issued by the commercial bank and with an increased 
risk. 
Support is given to all size enterprises.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No.  469 "Rules on parallel lending to economic operators 
for improving competitiveness " of 15 July 2016 (amendments by the Regulation of the Cabinet of 
Ministers No. 416 of 8 August 2017 and No. 20 of 9 January 2018, No. 170 of 19  April 2019, No.  247 
of 1 May 2020, No. 649 of 3 November 2020, No. 762 of 25  November  2021).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Mezzanine loan.  
5. Annual amount of the subsidy  
By December 31, 2022, 21 parallel loans of 11.4 million have been issued in the amount of euros . 
6. Duration of the subsidy  
2016 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
13  PORTFOLIO GUARANTEES  
1. Period covered by the notification  
2017 – 2023. G/SCM/N/401/EU/Add.16  
 
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  2. Policy objective/to whom the subsidy is provided  
Policy objective: the objective of the portfolio guarantee is to facilitate access to finance for 
merchants.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 537 " Regulation on Portfolio Guarantees to 
Foster  Lending to micro, small and medium enterprises lending" of 5 September 2017 (amendments 
by the Regulation of the Cabinet of Ministers No. 145 of 6 March 2018, No. 155 of 24 March 2020, 
No. 207 of 14 April 2020, No. 824 of 17 December 2020, No. 246 of 20  April 2021, No. 504 of 6 July 
of 2021, No. 171 of 15 March 2022).  
4. Form of the subsidy  
Credit guarantee.  
5. Annual amount of the subsidy  
As of December 31, 2022, 855 guarantees worth EUR 35.57 million have been issued  as part of the 
portfolio guarantee program .  
6. Duration of the subsidy  
2014 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
14  NEXT GENERATION NETWORK FOR RURAL AREA  
1. Period covered by the notification  
2018 – 2020.  
2. Policy objective/to whom the subsidy is provided  
The direct recipient of the aid is the wholesale operator of the network, State Joint Stock Company 
"Latvia State Radio and Television Centre". Indirect beneficiaries are electronic communication 
operators utilizing the new network for offering retail services to end users.  
State Aid scheme "Next Generation Network for rural area" (hereafter - NGN project) foresees 
support to development and establishment of the broadband infrastructu re to provide wholesale 
broadband services in rural areas of Latvia, which are currently not served and where there are no 
plans for development of next generation network (hereafter - NGN) in the near future – three -year 
period. During the planned activit ies optical ( fibre ) backhaul infrastructure is developed, which allows 
a long period of use before becoming obsolete (20 years) and thus provides a reliable technology 
platform for the construction of the next generation access network – "last mile".  
In 20 15 first phase of the NGN Project is completed and 1,813 km of optical cable and 177 access 
points were built.  
By 2020 the implementation of NGN project second phase (2016 - 2020) will ensure infrastructure 
for future development of NGA in rural area and p rovide possibility for operators deliver NGA for 
households and governmental (administrative) entities (local governments, centres of rural 
territories, schools, libraries, hospitals etc.).  G/SCM/N/401/EU/Add.16  
 
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  The NGN project foresees totally setting up 500 connection points to NGN (approximately 7,000  km 
of fibre). The estimated overall costs of rolling out the network are estimated at EUR  119 million.  
Phase 1 thereof require EUR 26.400 million, phase 2 EUR 92.600 million. The planned overall aid 
amount is EUR 101.710 million  EUR 23.000 million for phase 1, EUR 78.710 million for phase 2. 
Financial means are obtained from the European Regional Development  Fund (ERDF).  
3. Background and authority for the subsidy  
Sustainable Development Strategy of Latvia until 2030; National Strat egic Reference Framework 
2007 - 2013; Operational Programme "Infrastructure and Services" 2007 -2013; Regulation of the 
Cabinet of Ministers No. 79 of 24 January 2012 "Regulations for Operational Programme 
"Infrastructure and services" 3.2.2.3. Activity "Pr ovision of equal access opportunities to electronic 
communications services in the whole territory of the country (development of Broadband network)".  
Operational programme "Growth and Employment" 2014 -2020; Regulation of the Cabinet of 
Ministers No. 664 o f 24 November 2015 "Regulations on the implementing rules of the first round 
project applications for the Operational Programme "Growth and Employment" specific objective 
No. 2.1.1. "To improve accessibility of the electronic communication infrastructure i n rural areas".  
Authority for the subsidy: Ministry of Transport of the Republic of Latvia.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
2018 – total grant amount – EUR 1.936 million (from ERDF, aid intensity 85%).  
2019 – total grant amou nt – EUR 5.788 million (from ERDF, aid intensity 85%).  
2020 – total grant amount – EUR 16.433 million (from ERDF, aid intensity 85%).  
6. Duration of the subsidy  
2012 - 2020.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
15  SUPPORT TO TRAINING FOR EMPLOYED FOR ENHANCING COMPETITIVENESS OF 
ENTERPRISES – SUPPORT TO TRAINING FOR EMPLOYED IN PARTNERSHIP (2014  - 2020 
PLANNING PERIOD PROGRAMME)  
1. Period covered by the notification  
2017 – 2022.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: training aid. The activity is aimed to promote training of employees in order to 
facilitate innovation adoption into the operation of the businesses for Manufacturing industry, 
ICT industry, Tourism industry and Global  Business Service Centre industry (1.2.2.1. action) and to 
support ICT skills development for ICT industry, non -technological innovations and training to attract 
investors (1.2.2.3. action).  G/SCM/N/401/EU/Add.16  
 
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  3. Background and authority for the subsidy  
The Regulations of the C abinet of Ministers No. 617 for measure No. 1.2.2. "To facilitate 
implementation of innovations in enterprises" action No. 1.2.2.1. "Technology training" 1st and 2nd 
call of 27  October 2015. (amendments by the Regulation of the Cabinet of Ministers No. 757  of 
6 December  2016, No. 317 of 13 June 2017, No. 402 of 10 of July 2018, No. 180 of 23 April 2019, 
No. 124 of 10 March 2020, No. 708 of 24 November 2020, No. 301 of 13 May 2021, No. 424 of 
14 July 2022).  
The Regulations of the Cabinet of Ministers No. 365  for measure No. 1.2.2. "To facilitate 
implementation of innovations in enterprises" action No. 1.2.2.3. "Non -technology training and 
training to attract investors" of 14 June 2016. (amendments by the Regulation of the Cabinet of 
Ministers No. 52 of 23 Jan uary 2018, No. 496 of 29 October 2019, No. 125 of 10 March 2020, 
No. 723 of 1 December 2020, No. 497 of 6 July 2021, No. 178 of 22 March 2022)  
Authority for the subsidy: the Ministry of Economics, the Central Financing and Contracting Agency 
of Latvia.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
1.2.2.1. action (ERDF):  
− 2017 – total grant amount – EUR 1.839 million.  
− 2018 – total grant amount – EUR 1.631 million.  
− 2019 – total grant amount – EUR 1.064 million.  
− 2020 - total grant amount – EUR 1.134 million.  
− 2021 – total grant amount – EUR 0.903 million.  
− 2022 – total grant amount – EUR 1.465 million.  
1.2.2.3. action (ERDF):  
− 2017 – total grant amount - EUR 0.264 million.  
− 2018 – total grant amount – EUR 0.411 million.  
− 2019 – total grant amount – EUR 0.485 million.  
− 2020 - total grant amount – EUR 0.571 million.  
− 2021 – total grant amount – EUR 0.189 million  
− 2022 – total grant amount – 0.202 million.  
6. Duration of the subsidy  
2016 - 2023 (1.2.2.1./1.2.2.3. action).  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
16  OPEN CALL FOR PROJECT APPLICATIONS "APPLIED RESEARCH PROGRAM"  
1. Period covered by the notification  
2016 - 2023. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: research and development. The objective of the activity is to support research, 
which contributes to the achievement of goals of the Latvian Smart Specialization Strategy, to the 
development of human capital for science and technology and to the creation of new knowled ge for 
the improvement of competitiveness of the national economy.  G/SCM/N/401/EU/Add.16  
 
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  3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 12 January 2016 No. 34 "Regulation for the 
implementation of measure 1.1.1.1 "Applied research progra m" of Specific Objective 1.1.1 "To 
increase the research and innovative capacity of scientific institutions of Latvia and their ability to 
attract external funding by investing in human resources and infrastructure" of Operational 
Programme "Growth and Emp loyment".  
Support is provided for implementation of research projects in open call for project application, which 
contribute to the implementation of Latvian Smart Specialisation strategy.  
Project applicants: scientific institutions registered in the Scien tific Institution Register and 
entrepreneurs.  
Authority for the subsidy: the Ministry of Education and Science.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
2016 total public funding amount EUR 0.021 million.  
2017 total public funding amo unt EUR 1 0.08 million.  
2018 total public funding amount EUR 14. 13 million.  
2019 total public funding amount EUR 17.26 million.  
2020 total public funding amount EUR 13.56 million.  
2021 total public funding amount EUR 20.38 million.  
2022 total public funding amount EUR 20.66 million.  
2023 total public funding amount EUR 14.22 million.  
6. Duration of the subsidy  
2016 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
17  OPEN CALL FOR PROJECT APPLICATIONS "POST -DOCTORAL RESEARCH AID"  
1. Period covered by the notification  
2016 - 2023. 
2. Policy objective/to whom the subsidy is provided  
Policy  objective: research and development. The objective of the activity is to develop the skills of 
new scientists and to increase the scientif ic capacity, ensuring the possibilities for new scientists to 
start a career in scientific institutions and with enterprises, as well as improvement of research 
competences, renewal of human resources and increase in the number of qualified specialists.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 19 January 2016 No. 50 "Regulations Regarding 
Implementation of Activity 1.1.1.2 "Post -doctoral Research Aid" of the Specific Objective 1.1.1 "To 
increase the research an d innovative capacity of scientific institutions of Latvia and their ability to 
attract external funding by investing in human resources and infrastructure" of the Operational 
Programme "Growth and Employment".  G/SCM/N/401/EU/Add.16  
 
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  Project applicants: scientific institutions r egistered in the Scientific Institution Register and 
entrepreneurs.  
Authority for the subsidy: the Ministry of Education and Science.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
2016 total public funding amount EUR 0.07 million.  
2017 total public funding amount EUR 0.45 million.  
2018 total public funding amount EUR 2.74 million.  
2019 total public funding amount EUR 6.16 million.  
2020 total public funding amount EUR 5.74 million.  
2021 total public funding amount EUR 11.63 million.  
2022 total public funding amount EUR 8.26 million.  
2023 total public funding amount EUR 4.59 million.  
6. Duration of the subsidy  
2016 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
18  VENTURE CAPITAL  
1. Period co vered by the notification  
2016 – 2023.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: risk capital. Risk capital and venture capital funds offer long -term equity investment 
for start -ups and innovative enterprises with a high growth pot ential at early stages of development, 
which traditional financers choose to refrain from financing due to higher attributed risk. Investments 
can be made in the form of equity or quasi -equity.  
3. Background and authority for the subsidy  
The Regulation of the  Cabinet of Ministers No. 518 "Regulations on Seed Capital and Venture Capital 
Funds for the Establishment, Development and Competitiveness of Economic operators" of 
12 April 2016 (amendments by the Regulation of the Cabinet of Ministers No. 7 of 9 January  2018, 
No. 90 of 24 April 2018, No. 564 of 8 September 2020, No. 154 of 8 March of 2022, No. 351 of 
21 June 2022).  
Authority for the subsidy: financial intermediaries selected in open public procurement process by 
state JSC "Latvian Development Finance Ins titution Altum".  
4. Form of the subsidy  
Provision of risk capital.  G/SCM/N/401/EU/Add.16  
 
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  5. Annual amount of the subsidy  
Within the framework of 2022, investments in companies totalling EUR 9 million were made, adding 
EUR 2 million of private co -financing.  
6. Duration of the subsidy  
2014 - 2020.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
19  ACCELERATOR FUNDS  
1. Period covered by the notification  
2018 and 2023.  
2. Policy objective /to whom the subsidy is provided  
The acceleration programme is allocated to innovative start -up companies for the establishment and 
development of business ideas and products, with the aim of promoting their growth and 
competitiveness, especially with regards to projects with a technological and industrial focus.  
3. Background and au thority for the subsidy  
The Regulation of the Cabinet of Minister No. 226 "Regulations Regarding Acceleration Funds for 
Facilitating the Establishment, Growth and Competitiveness of Performers of Economic Activities" of 
12 April 2016 (amendments by the Reg ulation of the Cabinet of Minister No. 19 of 9  January  2018, 
No. 247 of 24 April 2018 and No. 565 of 8 September 2020, No. 456 of 29  June 2021, No.  155 of 
8 March 2022, No. 352 of 21 June 2022).  
Authority for the subsidy: funding is available from three acceleration funds, selected in a public 
procurement by state JSC Latvian Development Finance Institution Altum: BuildIt Latvia; 
Commercial Reactor fund; Overkill Ventures.  
4. Form of the subsidy  
Provision of venture capital.  
5. Annual amount of the subsidy  
In 2016 there are no payments made.  
Form 2018 till 2022 (incl.) 24 companies were issued EUR 1.6 million.  
6. Duration of the subsidy  
2014 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. G/SCM/N/401/EU/Add.16  
 
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  20  SHORT-TERM EXPORT CREDIT INSURANCE  
1. Period covered by the notification  
2016 - 2023.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: short -term export credit insurance. The purpose of the measure is to provide short -
term export credit guarantee coverage to Latvian exporters. A guarantee covers up to 90% risk 
coverage concerning political risk, of the total sum of an ex port transaction. The maximum amount 
of an export credit guarantee or the maximum amount of ALTUM obligations for losses that have 
incurred due to non -payment by one foreign customer is EUR 2 million. An export credit guarantee 
may cover both the buyer's r isk and the risk of the guarantor of the buyer's obligations – bank or 
buyer's associated company if having certain doubt about the liquidity of the buyer's obligator. The 
objective of an export credit guarantee is to cover the risks of export deals or to serve as a collateral 
for the receipt of financing necessary for export deals, for instance, factoring.  
3. Background and authority for the subsidy  
The Regulation of the Cabinet of Ministers No. 866 "Regulation on short -term export credit 
guarantees to entrep reneurs and cooperative societies of agricultural services" of 20  December  2016 
(amendments by the Regulation of the Cabinet of Ministers No. 596 of 26  September 2017, No. 330 
of 17 July 2019, No. 206 of 16 April 2020, No. 821 of 24  December  2020, No. 284 of 14 May 2021, 
No. 347 of 2 August 2022, No. 792 of 11  February  2023).  
Authority for the subsidy: State JSC "Latvian Development Finance Institution Altum".  
4. Form of the subsidy  
Export credit risk insurance (financial instrument is not provided as subsidy in any form).  
5. Annual amount of the subsidy  
Issued guarantees for developed countries until April 2023 - 19 guarantees for the total amount of 
EUR 1,705,610.  
Issued guarantees for third countries until April 2023 - 15 guarantees for the total amount of 
EUR 976,600.  
6. Duration of the subsidy  
2016 - 2023.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
21  MID-TERM AND LONG -TERM GUARANTEES  
1. Period covered by the notification  
2017 - 2018.  
2. Policy objective and/or purpose of the subsid y 
Policy objective: medium and long -term export credit guarantees. The purpose of the measure is to 
provide medium and long -term export credit guarantee coverage to Latvian exporters. A guarantee 
covers up to 95% risk coverage concerning commercial risk an d up to 100% risk coverage G/SCM/N/401/EU/Add.16  
 
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  concerning political risk. The maximum amount of an export credit is EUR 5 million. The objective of 
an export credit guarantee is to cover the risks of export deals or to serve as a collateral for the 
receipt of financing necess ary for export deals, for instance, factoring. The credit risk period, 
including the production period, exceeds two years.  
3. Background and authority for the subsidy  
Regulation of the Cabinets of Ministers No. 290 "Regulation for the issuance of medium and 
long-term export credit guarantees to economic operators" of 30 May 2017.  
4. Form of the subsidy  
Export credit risk insurance (financial instrument is not provided as subsidy in any form).  
5. Annual amount of the subsidy  
No transactions concluded.  
6. Duration of the subsidy  
2017 - 2020.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
22  INNOVATION MOTIVATION PROGRAMME  
1. Period covered by the notification  
2016 – 2023.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: Promote understanding of innovation and business, as well as to practically involve 
different societal groups in business activities, and development and further implementation of 
innovative ideas and solutions.  
3. Background and authority for the subsidy  
Regulation of the Cabinet of Ministers No. 287 "Implementing regulations for Operational Program's 
"Growth and Jobs" 1.2.2. Specific Support Objective's "To promote innovation in enterprises" 
1.2.2.2.  Measure "Innovation motivation program" (am endments by the Regulation of the Cabinet 
of Ministers No. 625 of 13 October 2020).  
4. Form of the subsidy  
Non-financial support (soft measures).  
5. Annual amount of the subsidy  
EUR 0.7 million annually (2016 -2023). Total amount of support available within the p rogramme – 
EUR 5.65 million.  
6. Duration of the subsidy  
2016 - 2023.  G/SCM/N/401/EU/Add.16  
 
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  7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
23  CONTACT POINTS OF TRANSFER OF TECHNOLOGIES  
1. Period covered by the notification  
2019 - 2022.  
2. Policy objective/to whom the subsidy is provided  
Program objectives: provide a contribution to achieve objectives of the Smart Specialization Strategy 
of Latvia; support the development of the competence of the research result commercialization; 
promote commercia lization of the research results and to transform the research results into 
successful entrepreneurship; promote innovation activities in SME's and to provide aid to them 
through the transfer of technologies for the development of new or significantly impr oved products 
or technologies, and promote the establishment of start -up companies in Latvia.  
3. Background and authority for the subsidy  
Regulation of the Cabinet of Ministers No. 692 Regulation for the Implementation of the 
Activity  1.2.1.2 "Support for the  Improvement of Technology Transfer System" of the Specific 
Objective 1.2.1 "To increase investments of private sector in R&D" of the Operational Programme 
"Growth and Employment"  (amendments by the Regulation of the Cabinet of Ministers No. 213 of 
28 Apri l 2017, No. 648 of 31 October 2017, No.60 of 30 January 2018, No. 546 of 28 August 2018, 
No.332 of 16 July 2019, No. 480 of 28 July 2020, No. 500 of 6 July 2021, No.395 of 5  July 2022, 
No.707 of 8 November 2022)  
Authority for the subsidy: the Ministry of Economics, the Investment and Development Agency of 
Latvia.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
Total eligible funding – EUR 35 million (EUR 30 million – ERDF; EUR 5 million – state budget).  
2019 - total grant amount – EUR 1.583 million . 
2020 - total grant amount – EUR 3.292 million.  
2021 - total grant amount – EUR 6.647 million.  
2022 – total grant amount – EUR 5.217 million.  
6. Duration of the subsidy  
2016 – 2022.  
7. Statistical data permitting an assessment of the trade effects of the subsid y 
N/A. G/SCM/N/401/EU/Add.16  
 
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  24  PROMOTION OF EFFECTIVE USE OF ENERGY RESOURCES, REDUCTION OF ENERGY 
CONSUMPTION AND TRANSFER TO RES IN MANUFACTURING INDUSTRY  
1. Period covered by the notification  
2016 - 2022. (4.1.1. specific support objective)  
2022. (1.2.1.2.1.i. sub-investment)  
2. Policy objective/to whom the subsidy is provided  
4.1.1. specific support objective  
Policy objective: The goal of the measure is to promote effective use of energy resources, reduction 
of energy consumption and transfer to RES in manufacturing industry.  
Support will be provided for energy efficiency measures in industrial buildings as well as for 
improvement and replacement of equipment that is more energy efficient. Financial beneficiaries: 
manufacturing companies – NACE 2. red C section (excl. Tobacco manufacturing).  
1.2.1.2.1.i. sub -investment  
Policy objective: The goal of the measure is to promote investment in improving energy efficiency 
in business, in the development of renewable energy technologies and in the rational use of  energy 
resources, by reducing the negative impacts on the environment and climate change, as well as 
improving the productivity, competitiveness and export of enterprises and promoting sustainable 
and environmentally friendly business development . 
Support  will be provided for e nergy efficiency projects (building energy efficiency, etc.);  renewable 
projects (solar panels, etc.);  sustainable transport  (zero-emission vehicles ). Financial beneficiaries: 
companies.  
3. Background and authority for the subsidy  
4.1.1 . specific support objective  
1) The Regulation of the Cabinet of Ministers No. 590 "Regulations on the operational 
programme's "Growth and employment" 4.1.1. specific support objective "To promote 
effective use of energy resources, reduction of energy consum ption and transfer to 
RES in manufacturing industry"  First Project Application Selection Round ” of 9 
September 2016";  
2) The Regulation of the Cabinet of Ministers No. 38 "Regulations on the operational 
programme's "Growth and employment" 4.1.1. specific support objective "To promote 
effective use of energy resources, reduction of energy consumption and transfer to 
RES in manufacturing industry" Second Project Application Selection Round" of 
27 January  2018";  
3) The Regulation of the Cabinet of Minis ters No. 506 "Operational programmes "Growth 
and employment" 4.1.1. specific support objectives "To promote effective use of 
energy resources, reduction of energy consumption and transfer to RES in 
manufacturing industry" implementing rules for the third r ound of project applications" 
of 5 November 2019";  
Authority for the subsidy: the Ministry of Economics, the Central Finance and Contracting Agency.  
1.2.1.2.1.i. sub -investment  
The Regulation of the Cabinet of Ministers No. 594 "European Union Recovery and  Resilience Stability 
Mechanism Plan Reform 1.2 and Investment Direction “Improving Energy Efficiency” 1.2.1.2.i. 
investments “Reinforcing energy efficiency in business (including the transition to the use of 
renewable energy technologies in heating and R & D activities (including the bio -economy)” G/SCM/N/401/EU/Add.16  
 
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  1.2.1.2.1.i. sub -investment “Reinforcing energy efficiency in business” implementing rules (including 
the transition to the use of renewable energy technologies in heating)" of 20 September 2022.  
Authority for th e subsidy: the Ministry of Economics, State JSC "Latvian Development Finance 
Institution Altum".  
4. Form of the subsidy  
Direct grant.  (4.1.1. specific support objective)  
Combined financial instrument, which is a repayable loan and a capital discount . (1.2.1. 2.1.i. 
sub-investment)  
5. Annual amount of the subsidy  
4.1.1. specific support objective  
 
In 2017, 2018 for 1st call signed 25 contracts for EUR 6,5 million Cohesion fund  
In 2018, 2019 for 2nd call signed 23 contracts for EUR 5,7 million Cohesion fund  
In 2021 , for 3rd call signed 29 contracts for EUR 8,4 million Cohesion fund  
 
1.2.1.2.1.i. sub -investment  
N/A. 
6. Duration of the subsidy  
2016 - 2023. (4.1.1. specific support objective)  
2022-2026. (1.2.1.2.1.i. sub -investment)  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
25  SUPPORT TO ELECTRICITY PRODUCTION  
1. Period covered by the notification  
2021 and 2022. 
2. Policy objective/to whom the subsidy is provided  
Increase of renewable energy production, energy security and environmental protection climate 
change , promotion of high efficiency cogeneration.  
3. Background and authority for the subsidy  
Several Legal Acts form the legal basis: the Electricity Market Law; Subsidised  Electricity Tax Law; 
Regulations of the Cabinet of Ministers of 10 March 2009 No. 221 "Regarding Electricity Production 
and Price Determination upon Production of Electricity in Cogeneration"; Regulations of the Cabinet 
of Ministers of 16 March 2010 No. 2 62 "Regarding the Production of Electricity Using Renewable 
Energy Sources and the Procedures for the Determination of the Price "; Regulations of the Cabinet 
of Ministers of 2 September 2020 No. 561 "Regulations on the Production, Monitoring and Pricing of  
Electricity from Cogeneration"; Regulations of the Cabinet of Ministers of 2 September 2020 No.  560 
"Regulations on Electricity Generation from Renewable Energy Sources, as well as on 
Pricing  Procedures and Monitoring ". G/SCM/N/401/EU/Add.16  
 
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  Authority for the subsidy: the Mini stry of Economics /the Ministry of Climate and Energy since 
1 January 2023.  
4. Form of the subsidy  
Feed-in tariffs, capacity payments  limiting state support.  
5. Annual amount of the subsidy  
2019 – total aid amount – EUR 150.846 million.  
2020 – total aid amount – EUR 150.673 million.  
2021 – total aid amount – EUR 75.828 million.  
2022 – total aid amount – EUR 11.477 million.   
6. Duration of the subsidy  
Rights to produce and sell electricity within the framework of mandatory purchase or guaranteed 
payments is l imited to a maximum of 20 years. The current system of mandatory purchase and 
guaranteed payments is in place until 2032 for electricity production in cogeneration and until  2036 
for electricity production from renewable energy sources.  
However, since 26 M ay 2011 no new rights are conferred to sell electricity produced from renewable 
energy sources within the framework of mandatory purchase or guaranteed payments. Similarly, 
since 10  September 2012  no new rights are conferred to sell electricity produced in  high efficient 
cogeneration within the framework of mandatory purchase or guaranteed payments.  
Application of the subsidised electricity tax ceased on 31 December 2017.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
26  SUPPORT FOR PROCESSING OF AGRICULTURAL PRODUCTS  
1. Period covered by the notification  
2021 and 2022 . 
2. Policy objective/to whom the subsidy is provided  
The regional aid scheme supports investment projects, which aim at the activities related to the 
processing of a gricultural products.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 30 September 2014 No. 600 "The procedure for 
granting of the State and European Union support in the form of open project tenders under the 
measur e "Investments in physical assets".  
The Regulations of the Cabinet of Ministers of 30 November 2021 No. 776 "The procedure for 
granting of the State and European Union support in the form of open project tenders under the 
measure "Investments in physical a ssets" during the transition period of the 2014 -2020 planning 
period in 2021 and 2022 ". 
Authority for the subsidy is the Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  G/SCM/N/401/EU/Add.16  
 
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  5. Annual amount of the subsidy  
2021 – Total grant amount – EUR 4.477 million.  
2022 – Total grant amount – EUR 1.824 million.  
6. Duration of the subsidy  
2015 - 2025.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
27  SUPPORT FOR INVESTMENTS IN CREATION AND DEVELOPMENT OF 
NON-AGRICULTURAL ACTIVITIES  
1. Period covered by the notification  
2021 and 2022 . 
2. Policy objective/to whom the subsidy is provided  
The measure aims at encouraging production of non -agricultural commercial activities (business) or 
employment in t he rural area, diversifying activities that are not related to agriculture, to develop 
alternative income sources and increase in income levels in rural areas.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 24 May 2 016 No. 320 "The procedure for granting of 
the State and European Union support under the measure "Support for investments in creation and 
development of non -agricultural activities" in the form of open project application tenders".  
Authority for the subsi dy is Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
2021 – Total grant amount – EUR 0.446 million.  
2020 - Total grant amount - EUR 0.797 million.  
6. Duration of the subsidy  
2016 - 2025.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
28  SUPPORT FOR THE STRENGTHENING OF LOCAL ECONOMICS  
1. Period covered by the notification  
2021 and 2022. G/SCM/N/401/EU/Add.16  
 
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  2. Policy objective/to whom the subsidy is provided  
The measure aim is to pro mote the local development in rural territory, to support the local 
development initiatives which complying with the Rural Development Programme 2014 - 2020 and 
included in the community -led local development strategies of local action groups and improving  
situation in rural areas, creating a favourable environment for living, entrepreneurship and 
development of rural territories.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 13 October 2015 No. 590 "The procedure f or granting 
of the State and European Union support for rural development under the sub -measure 'Support for 
implementation of operations under community -led local development strategy'".  
Authority for the subsidy is Ministry of Agriculture, the Rural Supp ort Service.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
2021 - Total grant amount - EUR 0.769 million.  
2020 - Total grant amount - EUR 0.669 million.  
6. Duration of the subsidy  
2016 - 2025.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
29  THE LOAN PROGRAMME FOR RURAL ECONOMICS, AGRICULTURAL AND FISHERIES 
ECONOMIC OPERATORS  
1. Period covered by the notification  
2021 - 2022.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: aid for rural development, agricultural and fisheries operators ( de minimis aid). The 
aim is to promote the involvement of citizens in rural economic activity and increase the availability 
of financial resources for rural economics, agricultural and fisheries operators.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 24 July 2018 No. 446 "Provisions on the loan program 
for rural economic, agricultural and fisheries economic operators".  
Authority for the subsidy: Ministry of Agricul ture, State JSC "Latvian Development Finance Institution 
Altum".  
4. Form of the subsidy  
Loan.  G/SCM/N/401/EU/Add.16  
 
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  5. Annual amount of the subsidy  
2021  – total issued loan amount – EUR 0.914  million.  
• Support for processing of agricultural products – EUR 0.412 million;  
• Support for in vestments in creation and development of non -agricultural activities – 
EUR 0.502 million.  
2022 – total issued loan amount – EUR 0.646 million.  
• Support for processing of agricultural products – EUR 0.443 million;  
• Support for investments in creation and deve lopment of non -agricultural activities – 
EUR 0.202 million.  
6. Duration of the subsidy  
2018 – 2025.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
30  NORWEGIAN FINANCIAL MECHANISM 2014 -2021 PROGRAMME "BUSINESS 
DEVELOPMENT, INNOVATIONS AND SMES " 
1. Period covered by the notification  
2021 – 2022. 
2. Policy objective/to whom the subsidy is provided  
Policy objective: support for SMEs, start -ups and business idea developers to promote the creation 
of higher value -added products and services in three areas: (1) green innovation, (2) information 
and communication technologies, and (3) welfare technologies.  
3. Background and authority for the subsidy  
The Regulations of t he Cabinet of Ministers of January 7, 2021 No 4 "Regulations on implementation 
of the Norwegian Financial Mechanism 2014 -2021 Programme "Business Development, Innovations 
and SMEs ".  
Authority for the subsidy: Ministry of Economics, Investment and Developm ent Agency of Latvia 
(IDAL) . 
4. Form of the subsidy  
Direct grant  
5. Annual amount of the subsidy  
EUR 14. 7 million* (EUR 12.5 million from the Norwegian Financial Mechanism and EUR 2.2 million 
from the State Budget)  
 
* incl. programme administration costs for IDAL . G/SCM/N/401/EU/Add.16  
 
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  6. Duration of the subsidy  
2021 - 2024 (April 30,  2024)  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
31  STATE AID FOR AGRICULTURE PRODUCTION - COVID -19 MEASURES  
1. Period covered by the notification  
2021.  
2. 2. Policy objective/to whom the subsidy is provided  
Policy objective: State aid to alleviate the negative impact of the COVID -19 outbreak on certain 
agriculture sectors.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 22 June 2021 No. 421 "Regulations on state support 
for mi tigating the negative impact of the spread of Covid -19 in the poultry industry".  
The Regulations of the Cabinet of Ministers of 22 June 2021 No. 422 "Procedure for granting, 
administration and monitoring of State aid for mitigating the negative impact of t he spread of Covid -
19 in the pig farming sector".  
The Regulations of the Cabinet of Ministers of 5 October 2021 No. 673 "Procedure for granting, 
administration and monitoring of State aid for mitigating the negative impact of the spread of Covid -
19 in the cattle breeding sector".  
The Regulations of the Cabinet of Ministers of 6 July 2021 No. 502 " Procedures for the granting of 
State aid to mitigate the negative effects of Covid -19 spread in the micro -green production and in 
the fisheries and aquaculture sec tor" 
Authority for the subsidy: Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
EUR 8.684 million.  
6. Duration of the subsidy  
2021.  
7. Statistical data permitting an assessment of the trade effec ts of the subsidy  
N/A. G/SCM/N/401/EU/Add.16  
 
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  32  STATE AID FOR AGRICULTURE PRODUCERS – SUPPORT TO MITIGATE NEGATIVE 
EFFECTS OF WAR IN UKRAINE  
1. Period covered by the notification  
2022.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: State aid to mitigate negative economic impact on sectors of pig farming, poultry 
farming and covered area vegetable production.  
3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 28 June 2022 No. 391 "Procedure for granting the 
European Uni on and national exceptional adjustment aid sectors of pig farming, poultry farming and 
covered area vegetable production".  
The Regulations of the Cabinet of Ministers of 22 November 2022 No. 738 "Procedure for granting 
state aid for mitigating negative eco nomic consequences in the sectors of pig farming, poultry 
farming and covered area vegetable production".  
Authority for the subsidy: Ministry of Agriculture, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
EUR 5 million. 
6. Duration of the subsidy  
2022.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
33  STATE AID FOR PROCESSING SECTOR OF AGRICULTURAL PRODUCTS – SUPPORT TO 
MITIGATE NEGATIVE EFFECTS OF WAR IN UKRAINE  
1. Period covered by the n otification  
2022.  
2. Policy objective/to whom the subsidy is provided  
Policy objective: State aid to mitigate negative economic impact on processing sector of agricultural 
products . G/SCM/N/401/EU/Add.16  
 
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  3. Background and authority for the subsidy  
The Regulations of the Cabinet of Ministers of 5 July 2022 No. 420 "Procedures  for the granting of 
State aid to mitigate the negative economic consequences in the processing sector of agricultural 
products  ". 
Authority for the subsidy: Ministry of Agricult ure, the Rural Support Service.  
4. Form of the subsidy  
Direct grant.  
5. Annual amount of the subsidy  
EUR 9,999,999 million.  
6. Duration of the subsidy  
2022.  
7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
34  EUROPEAN MARITIME AND FIS HERIES FUND (EMFF) 2014 -2020 SUPPORT  
1. Period covered by the notification  
2021 and 2022.  
2. Policy objective/to whom the subsidy is provided  
Promoting competitive, environmentally sustainable, economically viable and socially responsible 
fisheries and aquaculture.  
3. Background and authority for the subsidy  
− Operational Programme for fisheries development for Latvia 2014 -2020.  
− REGULATION (EU) No 508/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 
15 May 2014 on the European Maritime and Fisheries Fund  and repealing Council Regulations 
(EC) No 2328/2003, (EC) No 861/2006, (EC) No 1198/2006 and (EC) No  791/2007 and 
Regulation (EU) No 1255/2011 of the European Parliament and of the Council.  
− Authority for the subsidy: Ministry of Agriculture, Rural Support  Service.  
4. Form of the subsidy  
Grant.  
5. Annual amount of the subsidy  
2021 – EUR 3.49 million (National Budget).  
2022 – EUR 1.97 million (National Budget).  
6. Duration of the subsidy  
The EMFF  programming period is from 2014 to 2020 (31 December 2023 by virtue of the n+3 rule) . G/SCM/N/401/EU/Add.16  
 
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  7. Statistical data permitting an assessment of the trade effects of the subsidy  
N/A. 
35  EUROPEAN MARITIME , FISHERIES AND AQUACULTURE FUND (EMFAF) 2021 -2027 
SUPPORT  
1. Period cov ered by the notification  
2021 and 2022.  
2. Policy objective/to whom the subsidy is provided  
Fostering sustainable fisheries and the restoration and conservation of aquatic biological resources 
and fostering sustainable aquaculture activities, and processing and marketing of fishery and 
aquaculture products, thus contributing to food security in the Union . 
3. Background and authority for the subsidy  
− Programme for fisheries development for Latvia 2021 -2027.  
− Regulation (EU) 2021/1139 of the European Parl iament and of the Council of 7 July 2021 
establishing the European Maritime, Fisheries and Aquaculture Fund and amending 
Regulation (EU) 2017/1004 . 
− Authority for the subsidy: Ministry of Agriculture, Rural Support Service.  
4. Form of the subsidy  
Grant.  
5. Annual  amount of the subsidy  
2021 – EUR 0 million (National Budget).  
2022 – EUR 0.43 million (National Budget).  
6. Duration of the subsidy  
The EMFAF programming period is from 2021 to 2027.  
7. Statistical data permitting an assessment of the trade effects of the subsi dy 
N/A. 
 
__________  