AGP Executive Report

Lithuania Startup & VC: Oxylabs (Vilnius) raised $130M from Warburg Pincus, valuing the data infrastructure firm at about $3.6B as it pushes “agentic web” tooling for AI. Fintech Leadership: Revolut appointed Kuba Fast, ex-Chase UK boss, to lead Revolut Bank UAB in Lithuania as it scales across the EEA. Energy Security: AB Ignitis secured an extra 2 TWh of long-term regasification capacity at Klaipeda LNG (2033–2044) to boost Baltic gas resilience. Grid & Renewables Rules: Lithuania lets grid operators disconnect solar plants over 100 kW that miss new cybersecurity requirements—signaling tougher oversight for distributed energy. Border & Mobility: A French driver was detained in Lithuania for smuggling 19 migrants from Latvia using a Bolt Drive van; the case targets a “Latvian migration route.” Defense Procurement: Lithuania received a new batch of Spike LR2 anti-tank missiles (over €3M) to counter Russian armored vehicles. Court Update: Vilnius District Court refused to remand Antanas Kandrotas (Celofanas) in custody despite his Belarus flight.

NATO Summit Wrap (Ankara): US President Donald Trump ended the meeting with a rare show of unity, praising “a lot of love” and reaffirming Washington’s intent to stay in NATO, while leaders locked in an “ironclad” Article 5 message after earlier Iran-related criticism and Greenland trade friction. Lithuania–Poland Tech Push: Lithuania’s economy ministry joined EuroHPC to pursue AI “gigafactories,” submitting a joint proposal with Poland to build advanced AI computing capacity. Solar Supply Shock: A potential EU ban on high-risk solar inverters and power-conversion systems could hit about 14% of forecasted EU solar demand to 2030, with the Baltics flagged as among the most exposed. Housing Costs Watch: Eurostat data show house prices and rents rising across the EU in early 2026; Lithuania recorded a double-digit house-price increase (11.9%). Defence Spending Signal: President Nausėda told allies Lithuania is allocating 5.4% of GDP to defence in 2026 (7% including related spending). Politics at Home: A Delfi poll puts Homeland Union-Lithuanian Christian Democrats (TS-LKD) on top at 16.5%, with LSDP second at 11.4%. Tourism Revenue Move: Riga’s tourist tax will double to €2 per night from Jan 1, 2027.

NATO Summit in Ankara: Leaders reaffirmed an “ironclad” Article 5 mutual defense pledge as Trump softened tone after earlier threats over Greenland, Iran and allies’ defense spending—while markets reacted to renewed Iran-strike risk. Lithuania Defense & Industry: Lithuania joined Norway in a government-to-government MoU for Norway’s Standardised Vessel Programme, aiming to cut costs and boost interoperability with modular multi-role ships. Lithuania Energy Security: Ignitis invited LNG suppliers for up to 10 years, targeting more stable pricing via partial Henry Hub links and discussing transatlantic logistics with the U.S. Baltic Power Grid: Lithuania, Latvia and Germany agreed to seek EU PCI status for the Baltic–German PowerLink undersea electricity link to support offshore wind and trade. Digital Money Debate: A Vilnius-based EMBank supervisory board chair argues stablecoins are beating CBDCs on real-world adoption. Crypto in Lithuania: Kraken is pursuing a European banking license in Lithuania. Travel Deals: Ryanair launched a 41-year flash sale with flights from Kaunas and other Lithuanian routes from under €20.

Crypto Banking Push: Kraken is pursuing full European banking authorization with Lithuania reportedly the target jurisdiction, aiming to move from crypto licenses toward traditional banking rails (custody, payments, settlement) and potentially mirror Revolut’s Lithuania path. NATO Defense Spending & Procurement: Ahead of the Ankara summit, NATO says Lithuania leads the alliance on core defense spending at 5.33% of GDP, while overall budgets are under strain as allies chase a 5% target by 2035; NATO also plans joint procurement of up to 10 Saab GlobalEye aircraft to replace the aging E-3 AWACS fleet. Ukraine Air-Defence Urgency: Zelenskiy says Patriot supply and stronger air defenses are top priorities at the NATO meeting as Russia escalates missile and drone attacks. Lithuanian Energy Policy: Lithuania is introducing dynamic electricity tariffs for large businesses, signaling a shift in how firms manage power costs. Tech & Security for SMBs: Hostinger partners with Patchstack to add automatic vulnerability management for Node.js hosting, continuously scanning dependencies and guiding remediation. Business & Markets: EU data show plastic packaging rose 11% from 2011-2025; Lithuania’s broader economic backdrop also includes rising relocation interest, with Lithuania ranked among top EU destinations in a global index.

NATO Defence Push (Lithuania in focus): Lithuania is among the top NATO spenders, with core defence estimated at 5.33% of GDP this year, as Ankara leaders assess progress toward the 5% target by 2035. EU Air-Defence Procurement: Nine EU countries including Lithuania urged the European Commission to quickly approve buying US-made missiles for Ukraine under the €90bn 2026–2027 defence support, naming PAC-3, AIM-120, ATACMS and HARM. Nuclear Policy Shift: Lithuania moved to lift its constitutional ban on hosting nuclear weapons, following Finland’s lead, with President Nausėda backing removal of Article 137. Baltic Security Industry: NATO also advanced major surveillance and counter-drone plans, including selection of Saab’s GlobalEye to replace E-3 AWACS and a $40bn counter-drone initiative. Energy & Markets: EU renewables hit a record 45.5% of electricity in Q1, while Cyprus posted the strongest retail sales growth in the EU in May.

NATO & Defense Spending: Ahead of the Ankara summit, NATO leaders are set to unveil tens of billions in arms deals, while the US presses allies to move faster toward the 5% of GDP defense target—an effort that’s already straining some European budgets and leaving no agreement on which threats the spending is meant to deter. Lithuania Politics: Lithuania’s president approved a new government led by Mindaugas Sinkevicius, keeping key ministers and aiming to stabilize politics, strengthen security, and push economic and social reforms. Lithuania Business & Finance: Payward Europe secured an electronic money institution license in Lithuania, adding a regulated euro- and fiat-rail route for Kraken-linked services across Europe. Energy & Trade Links: Ukraine says donated power equipment from European partners is already operating at multiple Ukrainian energy sites, with Lithuania’s Ignitis Gamyba delivering 152 shipments. Retail & Consumer Demand: Eurostat data show euro area retail trade rose 0.2% month-on-month in May and 1.6% year-on-year; Lithuania saw a monthly decline, while Bulgaria and Cyprus led growth. Media & Streaming: Duo Media Networks and Go3 signed a long-term Baltics distribution deal, bringing Duo One on-demand content and localized channels to Lithuania, Latvia, and Estonia. Markets & Regulation: Alpaca completed EEA passporting for regulated investment services across 29 countries, including Lithuania, expanding access for fintechs building products under MiFID II. Tech & Industry: Quantum Systems says it’s expanding drone production capacity with new sites, including along Lithuania’s eastern flank, to support NATO’s Drone Edge push. EU Housing Signals: Eurostat reports Lithuania’s house sales jumped in 2025, pointing to a rebound in parts of the region.

Lithuania Cabinet Update: President Gitanas Nausėda approved a new government led by Prime Minister Mindaugas Sinkevicius, keeping key ministers like Foreign Minister Kęstutis Budrys while reshuffling other portfolios after coalition changes. Energy & Industry: Lithuania will roll out optional dynamic electricity transmission tariffs for large businesses from January 2027, linking grid charges to wholesale day-ahead prices and offering zero transmission charges when prices hit zero or below. Baltic Aviation Business Risk: Lithuania’s defense minister says no civilian flights will operate from Šiauliai after the terminal lease ends in March 2027, raising concerns from MRO and logistics firms about lost investment and international status. Finance & Banking: Luminor Bank in Latvia approved €3m financing via a credit line to forestry company Timbro, lifting its available facility to €5m to support growth and revenue doubling plans. Crypto Exchange Product: WhiteBIT redesigned its VIP program so users can qualify via any single metric (balance, spot, futures, or lending), with automatic upgrades within 24 hours. EU Macro Signals: Eurostat reported euro area retail sales rose 0.2% month-on-month in May and 1.6% year-on-year, while producer prices climbed 5.9% year-on-year, driven largely by energy. NATO Budget Pressure: Ahead of the Ankara summit, US officials urged allies to move faster toward the 5% of GDP defense target, highlighting uneven progress across member states including the Baltics.

Lithuanian Energy Policy: Lithuania will roll out optional dynamic electricity transmission tariffs for large businesses from January 2027, letting firms link grid charges to wholesale day-ahead prices and even cut transmission to zero when market prices fall to or below zero; Litgrid will manage consumption limits during emergencies, with companies needing to opt in by 1 December. NATO & Defense Spending: Ahead of the July 7–8 Ankara summit, Lithuania’s PM Inga Ruginiene says allies should reaffirm unity and push toward 5% of GDP defense spending, with a focus on air defense and scaling defense industry output; she also flags Russia as the key long-term threat and cites recent drone incursions into Baltic airspace. Nuclear Weapons Law: Lithuania is moving to lift its constitutional ban on hosting nuclear weapons, with 50 MPs proposing amendments and a two-thirds vote needed in two parliamentary rounds; President Nausėda says the change would allow action if security worsens, following Finland’s decision. Regional Security Signals: Germany’s Chancellor Friedrich Merz is meeting Estonia, Latvia and Lithuania before Ankara to reinforce Germany’s role on the eastern flank, as the Baltics press for real deterrence capacity, not just spending pledges. Tech & Investment: A Europe-wide funding roundup puts Lithuania among the top countries by deal value (about €120M), with robotics leading the sector totals. Trade & Logistics: Sweden’s Trelleborg port is expanding ro-ro capacity by rebuilding part of its quay into a dedicated berth, adding five side fenders and a bulb fender to handle rising unaccompanied trailer freight flows across the southern Baltic corridor.

Electricity Markets: Lithuania will let large businesses opt into dynamic electricity transmission tariffs from January 2027, linking Litgrid grid charges to wholesale day-ahead prices and offering zero transmission components when prices hit zero or below, plus emergency-related discounts for high users. Defense & Industry: Lithuania is moving to lift the constitutional ban on hosting nuclear weapons, following Finland’s repeal and citing a worsening security environment; MPs have submitted an amendment and adoption would require a two-thirds vote. NATO Eastern Flank: Germany’s Chancellor Merz met Baltic leaders ahead of the Ankara summit, signaling a stronger German role in eastern deterrence as the Baltics push for more deployed capability and defense spending. Regional Security: Lithuania’s PM Ruginiene called Türkiye a key NATO ally and urged the summit to advance the 5% GDP defense target, with air defense and defense-industry capacity as priorities. Food Safety: A Europe-wide Salmonella outbreak linked to flavoured instant noodles has sickened 100+ people across 14 countries, with Lithuania among the hardest hit. Border & Migration: Poland detained 54 migrants, including 15 Afghans, found hidden in a cargo truck trailer near the Lithuania border, with authorities saying they were transported via Latvia through Lithuania.

NATO & Baltic Security: Lithuania is moving to lift its constitutional ban on nuclear weapons hosting, following Finland’s repeal and a push from lawmakers and President Nausėda to update Article 137 as the security environment worsens. Defense Industry & Drones: NATO is turning to European industry to counter unmanned systems, after costly air-defense scrambles and rising drone incidents across the region. EU Energy Funding: The European Commission and EIB allocated €2.5bn from ETS revenues to modernise energy systems across 11 EU states, including Lithuania (€169m), to boost efficiency and cut emissions. Cross-Border Migration: Polish border guards detained 54 migrants near the Lithuania border hidden in a cargo truck trailer (30 Pakistanis, 15 Afghans, 9 Bangladeshis), with plans to return them to Lithuania. Food Safety Watch: A salmonella-linked flavoured instant noodle outbreak has reached 14 countries, including Lithuania, with dozens hospitalised. Business & Trade Tech: Hostinger launched an ecommerce tool for small sellers that turns a product photo into a checkout link in minutes.

Border & Migration: Polish authorities detained 54 migrants, including 15 Afghans, after stopping a truck with Romanian plates entering Poland from the Lithuania route; the group is expected to be transferred back to Lithuania after procedures, with criminal proceedings planned against the driver. Food Safety & Consumer Risk: A salmonella outbreak tied to flavoured instant noodles has sickened at least 106 people across 14 countries, including Lithuania, with dozens of cases involving the same strain linked to specific products. NATO & Defence Policy: Lithuania’s president says the constitutional ban on nuclear weapons and foreign bases is outdated, with lawmakers moving to lift the restriction; the shift follows Finland’s repeal and comes as NATO leaders prepare for the Ankara summit. EU Energy & Funding: The EU and EIB allocated €2.5bn from ETS revenues to clean energy projects across 11 states, including €169m for Lithuania. Business & Compliance: The EU Pay Transparency Directive deadline passed on 7 June with only a few countries fully compliant, creating uncertainty for employers operating across jurisdictions, including Lithuania.

Ukraine Recovery Conference: Gdańsk wrapped up with 160 signed documents worth over €10bn, but a review suggests closer to $20bn across nearly 90 deals, including EBRD financing of more than €500m and PrivatBank risk-sharing and EU-backed business facilities. Energy & EU funding: The European Commission and EIB approved a new €2.5bn Modernisation Fund round from EU ETS revenues for 51 clean energy projects across 11 states, including Lithuania (€169m) and Latvia (€40m). Lithuania nuclear policy: President Nausėda says Lithuania’s constitutional nuclear ban is “outdated”; lawmakers have moved to scrap Article 137, following Finland’s repeal. Offshore wind progress: Ignitis Renewables got a positive EIA green light for the 700 MW Curonian Nord offshore wind farm, advancing it to the next development stage. Telecom investment: Telia Lithuania plans €7.1m to expand 5G capacity via 50 new base stations, upgrades to 300 sites, and deployment of 1,500 MHz spectrum. Pay transparency rules: Lithuania is among the few EU states fully transposed the Pay Transparency Directive by the June 7 deadline, while others face delayed or unclear timelines. Business tech: Hostinger launched an eCommerce tool for small sellers to manage products, inventory, orders, payments, shipping, and customer data from one dashboard, with AI-generated product pages and “quick links.”

Nuclear Policy Shift: Lithuania’s president says the constitutional ban on nuclear weapons and foreign bases is “outdated,” with party leaders backing removal of Article 137; 50 lawmakers have now filed a constitutional amendment to make future hosting legally possible, following Finland’s repeal. Defense Spending & NATO Politics: Ahead of the Ankara summit, leaders are pushing to reassure the U.S. on defense spending and industrial output as Trump signals pressure on allies. Energy Investment: The EU and EIB approved a €2.5bn Modernisation Fund round from ETS revenues for 51 clean energy projects across 11 states, including Lithuania. Offshore Wind Progress: Ignitis Renewables won a positive EIA decision for the 700 MW Curonian Nord offshore wind farm, moving it to the next development stage. Telecom Expansion: Telia Lithuania plans €7.1m to expand 5G via new base stations, site upgrades, and deployment of newly acquired spectrum. Food Safety Risk: A Salmonella Stanley outbreak linked to flavoured instant noodles has spread across 14 countries, including Lithuania, with officials warning recalled products may still be in homes. Business & Tech: Hostinger launched an eCommerce tool for small sellers to manage products, inventory, orders, payments, shipping, and customer data across multiple sales channels.

EU Clean Energy Push: The European Commission and the EIB approved a new €2.5bn Modernisation Fund round from EU ETS revenues for 51 clean-energy projects across 11 EU states, with Lithuania among the beneficiaries (about €169m) alongside Romania, Hungary and Czechia—aimed at grid upgrades, storage, renewables, district heating and industrial efficiency. Nuclear Policy Shift: President Gitanas Nausėda says Lithuania’s party leaders broadly agree Article 137 should be removed to allow hosting nuclear weapons in the future, with options ranging from a referendum to a Seimas vote—while stressing Lithuania would not station nukes in peacetime. Telecom Investment: Telia Lietuva plans €7.1m in 2026 to expand 5G capacity via 50 new base stations, upgrades to 300 sites and new radio equipment, plus deployment tied to newly acquired 1,500 MHz spectrum. Food Safety Risk: A Salmonella Stanley outbreak linked to flavoured instant noodles has reached 14 countries and 106 cases; officials warn recalled products may still be in homes, meaning more infections are possible. Corporate Exit: Kesko Senukai says it has fully exited Belarus after selling its indirect 50% stake in retailer OMA, ending operations there since Russia’s 2022 invasion.

Nuclear Policy Shift: President Gitanas Nausėda says Lithuania will lift its constitutional ban on nuclear weapons, aiming to remove the “grey zone” in NATO deterrence; Seimas leadership could register the initiative soon. EU Energy Funding: The European Commission and EIB disbursed €2.5bn from the Modernisation Fund for 51 clean-energy projects, including district heating decarbonisation in Czechia and industrial efficiency in Lithuania. Defense Innovation in Lithuania: France’s Naval Group will set up the Shield Lab maritime defense innovation lab in Lithuania with local research partners, targeting patrol-vessel tech. Cyber-Physical Security Risk: IISS links a Russian drone campaign to Europe-wide disruption, citing incidents near Vilnius and other hubs, with shadow-fleet ships used as launch/recovery platforms. Food Safety: A salmonella outbreak tied to flavoured instant noodles (Stanley strain) has spread across 14 countries, with cases reported in Lithuania and other EU states; a Ukrainian producer is implicated. Retail Tech for SMEs: Hostinger launches an AI-assisted ecommerce platform that turns product photos into checkout-ready pages and links to multiple sales channels. EV Market Signal: Tesla reported record Q2 deliveries (480,126), a 25% jump, suggesting Europe’s earlier Musk-related boycotts may be easing. Connected Car Limits: A Kia theft case shows connected-car tracking can be bypassed, with the last known location reported in Lithuania.

Food Safety & Trade: A multi-country salmonella outbreak linked to flavored noodle products has hit 14 European countries, with 106 confirmed cases (mostly children and young adults). EU agencies say the cases connect to a Ukraine producer behind the “Salmonella Stanley” strain; affected batches were withdrawn by Reeva Foods after internal checks. Inflation Watch: Eurozone inflation is easing to 2.8% in June as energy pressures fade, but Lithuania is flagged with the highest rate among available data at 5.5%, keeping local cost pressures in focus. EU Policy & Business Climate: Ireland kicked off its EU Council presidency, prioritizing competitiveness and security while pushing Ukraine accession momentum and negotiations on the bloc’s next long-term budget. Lithuania Entrepreneurship: Lithuania’s business-starting momentum is at a record high, with 17.4% of adults taking concrete steps to start companies and attitudes toward entrepreneurs improving. Crypto & Markets: WhiteBIT launched “TradeFi,” letting users trade traditional instruments via crypto-style perpetual futures, signaling more multi-asset trading inside EU crypto ecosystems. Transport & Logistics: Norwegian Sun’s Baltic cruise is being disrupted by technical issues, with port calls in Lithuania and the region adjusted. Defense & Tech: Vilnius-based RSI Europe rolled out a Drone Repeater Kit for FPV link resilience in EW-contested terrain, aimed at combat-ready drone operations.