New 'State Defense Corporation' to be founded in Latvia

On Tuesday, November 21, the Cabinet of Ministers supported the establishment of a new state-backed company named SIA "Valsts aizsardzības korporācija" (State Defense Corporation Limited).

All shares in the new commecial enterprise will be held by the Ministry of Defense, and it will work as a holding company and "be a part of the Latvian military industry ecosystem" according to a release from the Ministry.

"The task of the state capital company will be to carry out comprehensive investment management in the national defense industry and to coordinate production-related processes. It will also implement and stimulate the acquisition of European Union funding instruments and funds, creating national and cross-border cooperation, including by investing capital in existing Latvian military production companies, which would need such investments to increase their production capacity," the Ministry explained.

But it will also have a more urgent immediate function to "temporarily ensure the production and integration of military goods or their components and technologies that are critically needed by the defense sector."

Its initial share capital will be EUR 500,000. No details were immediately published of the composition of its board members, statutes etc.

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