Thursday, 18 June 2026
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EconomyPublished: 18 June 2026 at 16:21

Latvia to introduce compensation mechanism for losses caused by military incidents

The Saeima has adopted amendments providing state compensation for direct losses from military incidents, including those caused by foreign military equipment.

Foto: Dienas Bizness

Latvia is set to establish a new legal framework to compensate for damages resulting from military incidents. Amendments to the law on disaster management expand the definition of “technogenic disaster” to now cover events related to military activities, including the use of foreign armed forces’ equipment.

The Ministry of Defence becomes the lead agency for managing such incidents, while the Ministry of Agriculture gains increased responsibility when animal life or health is threatened, as well as food and feed safety. The Cabinet of Ministers will be authorized to set the procedure, deadlines, and amounts for compensating direct losses.

Compensation will be available to public and private legal entities as well as individuals. It covers damaged infrastructure, property, crops, plantings, forest stands, and animals. Previously, the existing regulation did not provide an effective mechanism for covering such losses because they did not arise from unlawful actions by state institutions.

The need for the amendments stems from the deteriorating geopolitical situation and recent incidents where unmanned aerial vehicles, likely linked to the war in Ukraine, entered Latvian airspace. In May, multiple alerts were issued in Latgale and Vidzeme due to drones – some crashed and exploded. In early June, NATO fighter jets shot down a foreign drone that had entered Latvia due to Russian electronic warfare operations near Rēzekne Municipality.

Following these events, the ruling coalition agreed on the need to develop a compensation mechanism. According to lawmakers, the new regulation will strengthen citizens’ legal confidence and foster trust in the national defense system.

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