AGP Executive Report

Life Sciences Investment: Northway Biotech opened a €61mn cell therapy and personalised medicine centre in Vilnius, aiming to scale Lithuania’s life sciences capacity with up to 20 cGMP-compliant manufacturing lines and initial customer contracts. Macroeconomy: Lithuania’s inflation accelerated to 6.1% in August, the highest in three years, driven by transport (+15.0%) and housing/utilities (+15.8%), while food prices fell 2.0%. Security & Sanctions: Lithuania expelled 22 Belarusian tech workers, citing a national security threat tied to a €500k fraud case linked to concealed Russian/Belarus military links in an EU space-program project. EU Policy Watch: The UN backed the “Correct the Map” resolution recommending the Equal Earth projection; Lithuania abstained while the US voted against—an issue with knock-on effects for education and public information. Tech & Mobility Regulation: Slovenia approved Tesla’s FSD Supervised, becoming the sixth EU country to allow it, ahead of a potential EU-wide vote expected in early October. Regional Business Moves: Estonian investor Infortar is expanding into Lithuania by buying agricultural group Litagra, boosting milk, poultry and farmland scale.

Lithuanian Security & Tech: Lithuania’s State Security Department (VSD) expelled 22 Belarusian nationals working for a tech firm, revoked their permits, and imposed a five-year Schengen entry ban after an EU-space-related fraud case tied the company to Russian and Belarusian military industry. Energy Transition: Vilnius completed construction of a green hydrogen plant and is rolling out a hydrogen refuelling station at Viršuliškės to power public transport buses from late 2026, supported by EU funding. Retail Leadership: Lidl appointed a new CEO for the Baltics, with leadership changes across customer, HR, finance, real estate, operations and purchasing as the chain runs 87 stores in Lithuania. Digital Identity Business: Procivis expanded its EUDI Wallet interoperability footprint by adding France to its EUDI testing environment, signaling momentum ahead of the end-2026 wallet rollout deadline. Regional Trade Pressure: Latvia plans a 300% tariff on Russian and Belarusian grain, while also moving to tighten passenger transport links—both aimed at reducing economic exposure amid the war. Markets & Consumer Tech: Vinted updated its terms effective Oct 8, including changes to balance verification and how counterfeit-handling is described.

Lithuanian Security & Compliance: The State Security Department (VSD) says 22 Belarusian citizens tied to a Vilnius tech firm (NTLAB) were expelled after being deemed a national security threat; the case links them to EU Space Programme (EUSPA) subsidy fraud of nearly €500,000, with residence permits revoked and a five-year Schengen ban. Biotech Investment: Northway Biotech opened a €61m cell therapy and personalized medicine CDMO in Vilnius, expanding cGMP capacity for gene and cell-based therapies and starting with customers already contracted. Baltic Energy Cooperation: Fourteen companies across the Baltic Sea region launched the Baltic Energy Initiative to pool expertise and pursue EU funding for offshore wind, LNG/bio-LNG, hydrogen, carbon transport/storage, and small modular reactors—plus shared protection against critical infrastructure and hybrid threats. Eurozone Macro: Eurostat reported euro area GDP grew 1.2% year-on-year in Q2 (EU: +1.4%); Lithuania’s Q2 growth was +1.7% quarter-on-quarter. Diplomacy & Trade: Lithuania and Taiwan signed a laser technology cooperation deal for advanced semiconductor packaging, with Lithuania’s government backing the effort with €5.6m. Global Policy Watch: The UN General Assembly adopted “Correct the Map,” encouraging equal-area projections; Lithuania abstained while the US voted against.

Defense & Security: Lithuania’s Ministry of National Defense is moving toward an AI-powered integrated airspace surveillance and control system, aiming to unify sensor data, improve drone detection, and speed public warnings, with about €5m earmarked and a pilot planned for early 2027. EU Monetary Policy: The ECB is widely expected to raise interest rates again next week as eurozone inflation accelerates to 3.3% in August, keeping pressure on households and borrowing costs. Lithuania–China Politics: The Seimas Board rejected lawmakers’ request for an official meeting with Chinese representatives in Brussels, saying trips won’t be recognized as official Seimas delegations. UN & Global Business Perception: The UN General Assembly backed the “Correct the Map” push, encouraging use of equal-area projections like Equal Earth to better reflect Africa’s size; the US voted against, while Lithuania abstained—an issue that could ripple into education, media, and corporate mapping. Regional Trade Risk: Latvia and Lithuania are weighing limits on Russian grain transit as shipments rise after attacks disrupt other routes, with potential knock-on effects for Baltic logistics and prices.

UN Cartography Shake-Up: The UN General Assembly backed a “Correct the Map” resolution to promote equal-area projections like Equal Earth, with 164 votes in favour and the US the lone no; Lithuania abstained, while the US called it part of a broader ideological agenda. Lithuanian Security Tech: Lithuania’s Defence Ministry is moving toward an integrated AI drone airspace surveillance system, targeting a pilot in early 2027 and about €5m in initial funding. Baltic Food Security & Trade: Latvia and Lithuania are weighing limits or a ban on Russian grain transit as shipments rise after Ukrainian drone attacks disrupt other routes. EU Monetary Policy: The ECB is set to raise interest rates again next week as eurozone inflation accelerates to 3.3% in August. US-Lithuania Diplomatic Friction: A US warning to Lithuania over plans tied to a Jewish cemetery in Vilnius (Snipiskes) is escalating a dispute over a Soviet-era building’s redevelopment. Black Sea Shipping: Turkey is pushing for a safe passage plan for cargo ships as attacks threaten grain exports and lift prices.

UN Map Vote: The UN General Assembly backed Togo’s “Correct the Map” push to promote equal-area projections like Equal Earth, with 164 countries voting for and the U.S. the lone no; Lithuania abstained, and the resolution is non-binding but signals a shift for how Africa’s size is shown in schools, media and digital platforms. Lithuanian Defense Tech: Lithuania’s Ministry of National Defence is set to launch a €5m integrated AI drone airspace surveillance and control system, aiming to unify sensor data, improve drone identification, and speed public warnings, with a pilot planned for early 2027. Vilnius Jewish Cemetery Row: U.S. Special Envoy Rabbi Yehuda Kaploun warned Lithuania over plans to revive a Soviet-era building in Snipiskes/Piramont cemetery as a conference center, escalating tensions with Jewish groups. Ukraine War Impact on Business: Petro Poroshenko told a Vilnius party congress that Russia is entering a “second siege of Kyiv” using drone and missile waves to disrupt civilian life and the economy, urging Lithuania’s support for Ukraine’s air defence. EU-Backed Education Resilience: An underground school for 500 students opened in frontline Sumy with EU, Lithuania and Ireland support, built as a long-life dual-purpose shelter. EU Food & Drink: Eurostat data shows EU beer production hit 34.4bn litres in 2025, with Germany and Spain dominating and alcohol-free beer continuing to grow.

UN Cartography Push: The UN General Assembly backed Togo’s “Correct the Map” resolution (164–1) urging governments, schools and tech firms to use equal-area projections like Equal Earth instead of Mercator when relative size matters, with Lithuania among six abstainers and the US voting no—reigniting debate over how map distortions shape perceptions of Africa’s scale. NB8 Energy Support: NB8 countries pledged at least €918m in 2026 to help Ukraine’s energy sector for winter, focusing on grid needs, resilience and integration into the EU market. EU Security Alarm: Germany escalated its response to alleged Russian hybrid warfare after a drone explosives incident at Leipzig/Halle Airport, pushing for faster Baltic Sea information-sharing and coordination. Lithuania Business & Investment: Northway Biotech opened a €61m cell therapy and personalized medicine CDMO center in Vilnius, expanding cGMP capacity for advanced therapies. Fintech Regulation: Revolut won a US OCC charter approval but with strict conditions delaying key product lines until separate supervisory sign-offs. Moldova-EU Track: Lithuania’s President met Moldova’s foreign affairs leadership in Vilnius as Lithuania said it will seek to accelerate Moldova’s EU accession during its 2027 Council presidency.

Advanced Biotech Investment: Northway Biotech opened a €61mn cell therapy and personalized medicine CDMO in Vilnius, adding cGMP capacity for autologous/allogeneic cell therapies, gene therapy and regenerative medicine, with first customers already onboard. Fintech Regulation: Revolut won a U.S. OCC bank charter approval but must get separate sign-offs before launching key product lines (FX trading, FX forwards, merchant acquiring and correspondent banking). EU Enlargement Push: Lithuania’s foreign minister says Vilnius will seek to accelerate Moldova’s EU accession, aiming to open remaining negotiation clusters before Lithuania takes the EU Council presidency in 2027. Baltic Energy Cooperation: ORLEN and 13 partners launched the Baltic Energy Initiative to coordinate cross-border projects across offshore wind, LNG/bioLNG, hydrogen and hydrogen market building, and to apply for EU funding. Port Infrastructure: Klaipėda Port Authority has started design work for a new marina next to the cruise terminal, targeting about 85 leisure berths and easing berth shortages. Retail Snapshot: Lithuania posted +5.9% year-on-year retail trade volume growth in July 2026, ranking among the EU’s faster growers.

Semiconductors Deal: Taiwan and Lithuania signed an MoU to develop advanced chip packaging machinery, combining Lithuania’s laser know-how with Taiwan’s imaging, precision scanning and AI, with €5.6m pledged over two years. Biotech Expansion: Northway Biotech opened a €61m cell therapy and personalized medicine CDMO in Vilnius, adding up to 20 cGMP manufacturing lines and starting with first customer programs. Crypto Regulation: Binance is still onboarding some EU customers after missing the MiCA deadline, using “reverse solicitation” and routing trades via an Abu Dhabi entity while it seeks authorization elsewhere. Finance & Banking: Revolut won conditional approval from the US OCC to form a national bank, but four product lines are held back pending extra supervisory sign-offs. Energy & Sanctions Law: The EU court ruled Lithuania can’t freeze Russian-linked company assets based on the Kremlin’s political system alone, raising the bar for proving control. Security-Driven Policy: Poland pushed the EU for tighter Russian visa restrictions after suspected sabotage, including biometric passport requirements and limits on diplomats. Hybrid Threats: Germany and Russia trade retaliatory moves after the Leipzig drone incident, with Russia also announcing closures of German cultural centers.

airBaltic Finance: Latvia’s flag carrier agreed terms for up to €257m in interim financing to fund its restructuring, with a bondholder meeting set for 11 September and money expected in stages after approvals. Lithuanian Energy & Markets: The EU Court of Justice said Russia’s autocratic regime alone isn’t enough to freeze assets of a company indirectly linked to sanctioned individuals, a ruling tied to Lithuania’s Inter Rao Lietuva case. Battery Storage Deals: A 140 MW Alytus BESS project in Lithuania is moving forward with a floor-agreement revenue structure, aiming for commissioning in 2027 and about €60m investment costs. Trade & Security: Lithuanian border guards detained a Belarusian and a Kaunas-area resident over transporting counterfeit cigarettes worth nearly €1.4m through Klaipėda. EU-Russia Pressure: Lithuania’s foreign minister said EU deterrence hasn’t stopped Russian attacks, pointing to the Leipzig/Halle drone incident and calling for stronger EU action. Energy Cooperation: ORLEN joined a Baltic Energy Initiative grouping to develop offshore wind, LNG/bioLNG, hydrogen, nuclear and grid resilience, including work on protecting infrastructure. Work Mobility Rules: Switzerland, the Netherlands and Iceland published lists of countries whose citizens can work without a permit under freedom-of-movement arrangements, including Lithuania. Fintech & AI: Revolut won a US banking charter but the regulator gated four product lines; Hostinger says its AI agent resolves most customer issues automatically.

Energy Shock in Ukraine: Russia’s missile and drone attack on Odesa’s energy backbone cut power to 350,000 families, disrupting public transport and water supply, with restoration incomplete for about 173,000 households. EU Sanctions & Security: After the Leipzig airport drone incident, EU states summoned Russian envoys and pushed fresh sanctions targeting 1,600 individuals/entities tied to Russia’s military industry, with Kaja Kallas calling it “state-sponsored terrorism.” Visa Pressure: The Leipzig case is also reviving arguments for an EU-wide Russian visa ban, as reports say one suspect used an Italian-issued tourist visa. Lithuanian Power Market: Litgrid reports August wholesale electricity prices rose across the Baltics; Lithuania’s demand slipped 1% month-on-month, with wind generation down slightly and imports up 2%. Payments Tech: Lithuania’s Handwave expanded its Visa deal to enable palm biometrics card onboarding using tokenization and authentication, aiming to scale biometric payments across Europe. Lithuanian Court/Space Fraud: Lithuania convicted two Belarusian citizens and a company over EU subsidy fraud tied to sanctioned Russian military links in a Galileo agriculture receiver project. Business & Trade Logistics: China-built LNG-hybrid ferries for TT-Line will serve Baltic routes including Lithuania, boosting cargo capacity and energy efficiency. Diplomacy With Economic Angle: Moldova’s deputy PM will visit Lithuania to discuss cooperation, investment partnerships, and regional security.

EU Sanctions Push: EU foreign ministers summoned Russia’s envoys and drafted fresh sanctions after Germany blamed Moscow for an explosive drone attempt at Leipzig/Halle airport, with Kaja Kallas calling it “state-sponsored terrorism” and warning of more hybrid attacks. Lithuanian Security & Airspace: Lithuania’s defence innovation community is gearing up for “Flaming Shield,” a hackathon focused on detecting and countering aerial threats and building dual-use solutions for critical infrastructure. Energy Prices: Litgrid says August wholesale electricity prices rose across the Baltics, with Lithuania’s demand slightly down and imports up, while wind and solar generation eased. Lithuanian Tech & Payments: Handwave expanded its Visa deal to link cards to palm biometrics using tokenization and authentication, aiming to scale biometric payments across Europe. Space & Defence Industry: Astrolight (Lithuania) and ATMOS Space Cargo signed an MoU to demonstrate real-time laser communications between a reentry spacecraft and a low-Earth-orbit satellite in 2027. Cross-Border Commerce: eBay will host its first eBay Baltic Export Summit in Vilnius on 30 September, targeting 1,000 attendees to help SMEs sell internationally. Electric Storage Deal: Capalo AI will optimize and trade a 56MW/168MWh Raseiniai battery project, with commercial operation targeted for Q1 2027.

Energy Costs & Markets: Electricity prices in the Baltics are set to stay pressured as natural gas costs rise, with August showing big swings and higher prices in the second half of the month. Aviation Disruption: Turkish airlines cancelled flights to Moscow and warned of risks in Russian airspace, while Turkish shipping firms suspended calls at Russian ports after drone damage incidents. EU Security & Sanctions: Germany says Russia was behind the Leipzig/Halle drone attack, with EU leaders calling it state-sponsored hybrid pressure and discussing tighter sanctions and coordinated responses. Air Connectivity in the Baltics: airBaltic unveiled its summer 2027 plan: Riga remains the main hub (57 direct routes), while Tallinn and Vilnius get fewer routes (13 and 8), with frequency boosts on key routes. Inflation Watch: Eurozone inflation hit 3.3% in August, driven mainly by energy; Lithuania recorded 5.8%—a reminder that cost pressures remain a business issue. Border & Enforcement: Lithuania is tackling a surge in cigarette smuggling via weather balloons from Belarus, with 635 detected shipments in 2025. EU Funds & Compliance: A Vilnius court convicted Belarus-linked fraudsters over EU subsidy claims tied to satellite navigation, after concealed links to sanctioned military industries. Tech & Industry: Vilnius-based LITILIT is scaling femtosecond laser production toward industrial volumes, aiming to reach up to 3,000 lasers annually.

Lithuanian Courts & EU Funds: Vilnius District Court convicted two Belarusian citizens (father and son) and a Lithuanian company they controlled for EU subsidy fraud tied to Galileo-based satellite navigation for agriculture, after prosecutors found they concealed links to sanctioned Russian military-linked navigation chip work. Inflation Watch: Eurostat’s flash estimate put euro area inflation at 3.3% in August (from 2.9%), driven mainly by energy; Lithuania recorded the highest rate among euro members covered at 5.8%, keeping pressure on household budgets. Consumer Retail: Ikea launched a €1.2bn Europe-wide price-cut push, with Ireland adding €6m cuts on 457 products—an affordability play as demand softens. Aviation & Connectivity: airBaltic published its summer 2027 plan: Riga becomes the clear hub (57 direct destinations), while Vilnius drops to 8, reflecting the carrier’s “financial stability first” restructuring. Tech & Industry: Vilnius-based LITILIT says it is building a high-capacity femtosecond laser factory aimed at scaling industrial production to thousands of lasers per year. Security & Policy: EU officials warned that Russian “hybrid attacks” won’t stop Ukraine support, while the bloc struggles to secure fresh air-defence supplies. Business & Trade Risk: Turkish shipping lines Akkon Lines and Arka suspended services to Russian ports, citing rising Black Sea dangers after a drone strike left a vessel in Novorossysk a total constructive loss.

Corporate Earnings: Vilkyskiu Pienine lifted H1 revenue to €185.5m (+29.9% y/y) and net profit to €12.6m (+42.8%), helped by a €6.1m gain from acquiring Marijampolės pieno konservai and stronger dry milk demand. Consumer & Retail: Ikea is rolling out a €1.2bn Europe-wide price-cut push to win back shoppers squeezed by housing and cost-of-living pressures, with redesigns aimed at lowering production and packaging costs. Inflation Watch: Eurozone inflation accelerated to 3.3% in August (highest since Sept 2023) as energy costs surged, while Lithuania recorded the highest national rate at 5.8%. Energy Storage Deal: Capalo AI and Lithuanian developer Future Energy will manage and optimize a 56 MW / 168 MWh battery storage project in Raseiniai, targeting commercial operation in Q1 2027. Freight & Logistics: Lithuania’s government, rail operator LTG Group and industry groups signed an agreement to stabilize rail freight rates to make pricing more predictable and support cargo growth. EU Enforcement: EPPO in Vilnius convicted two Belarusian citizens and their Lithuanian-controlled firm over subsidy fraud tied to Galileo-based agricultural navigation tech, with links to Russian/Belarusian military industry. Security & Trade Risk: Belgium again rejected reopening the frozen Russian assets-to-Ukraine plan, keeping the door “closed,” while Poland reported a suspicious fire at a drone-related plant—another sign of rising hybrid-risk around defense supply chains.

Retail & Sanctions: Lithuania’s Marytė Retail plans to replace the shut Mere supermarket chain, taking over locations and rolling out a discount concept with first stores expected in September, 20 by year-end, and 40 in 2027 after EU sanctions froze Svetofor Group-linked assets. EU Justice: EPPO officials in Vilnius helped convict a Belarusian father-son duo and their company over alleged EU subsidy fraud tied to Russian military-linked satellite navigation tech for farm machinery, including Galileo-based receivers. Energy & Shipping: Klaipėda Port Authority is moving from study to design for green methanol bunkering, with a proposed vessel concept (800 mt capacity) aimed at supplying regional shipping and offshore wind support. Labour Market Rules: New EU employment law takes effect in 2026 with a key shift: the burden of proof moves toward employers, including pay transparency rules now transposed in only a subset of member states. Defence & Hybrid Threats: Lithuania is investigating intimidation linked to Russian intelligence suspicions after funeral wreaths appeared outside a defence firm (RSI Europe) in Vilnius, echoing a similar incident in the Czech Republic. Policy Standoff: Belgium’s defence minister says using frozen Russian assets for Ukraine is “non-negotiable,” urging the Baltics to stop pressing the issue ahead of EU foreign ministers’ talks.