Latvia to build joint drone plant with Ukraine near Russian border

Latvia will build a joint drone manufacturing facility with Ukraine near its border with Russia, Latvian Prime Minister Andris Kulbergs said on 29 June, Delfi reported.

The agreement providing for joint production was signed in early June, when Kulbergs met Ukrainian President Volodymyr Zelenskyy on the sidelines of the Nordic-Baltic Eight summit in Tallinn — the first meeting between the two leaders. The deal, referred to as the Drone Deal, covers cooperation in unmanned aerial systems and includes technology transfer.

Kulbergs said the government would do everything necessary to site the facility near Latvia's border with Russia, adding that the Latgale region needs economic activity, investment, and jobs.

Counter-drone systems also planned for the eastern border

Beyond production, Kulbergs said new counter-drone solutions are set to become operational along Latvia's borders with both Belarus and Russia in July and August. These systems, he said, would remove the need to scramble aircraft in response to every aerial threat.

"In the event of a threat from drones, we won't have to take aircraft into the air every time, which is a very expensive and effective solution, but not the best and most productive," Kulbergs said.

Kulbergs has previously set a goal for Latvia to reach Ukraine's level of drone-defense capability by the end of 2026.

Russia's drone threat and NATO's eastern flank

The Latvia-Ukraine Drone Deal comes as Russia's military pressure on NATO's eastern flank has escalated beyond Ukraine's borders. Latvian intelligence reported on 26 June that it is seeing signs Russia is preparing military provocations against Estonia, Latvia, Lithuania, or Poland, though not a full-scale invasion. A senior NATO official confirmed that Russia is possibly preparing provocations. Western sources fear the threat is growing because the Kremlin is coming under pressure from Ukraine's long-range strike campaign, particularly against targets in Moscow and St. Petersburg.

Russia was described as considering "hybrid attacks, namely missiles, drones or other actions designed to send a signal: stop supporting Ukraine, or you will have your own problems," according to The Guardian.

Latvia itself has experienced the consequences of drone warfare firsthand. On 7 May, two suspected stray Ukrainian drones entered Latvia from Russia. One exploded at an oil storage facility in Rēzekne, roughly 40 km from the Russian border, damaging four empty oil tanks; no casualties were reported. The incident proved politically destabilizing: Latvia's defense minister resigned on 11 May, and Prime Minister Evika Siliņa followed four days later.