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HomeLatviaGovernment approves establishment of state-owned military industry company

Government approves establishment of state-owned military industry company

The government on Tuesday approved the establishment of state-owned military industry company Valsts Aizsardzibas Korporacija (National Defense Corporation).

Before taking the decision, ministers at the closed part of the government sitting heard an information report on the establishment of the state capital company.

The strategic mission of the state-owned capital company will be to manage investments in the national defense industry, coordinate processes related to the manufacture of military goods, promoting the development of the military industry and uninterrupted operation of its supply chains, the Defense Ministry said.

The capital company will be managing comprehensive investments in the national defense industry and coordinating production-related processes, as well as implement and promote the absorption of EU funding, building national and transnational cooperation, including by investing into already existing Latvian military industry enterprises to boost their production capacity.

Valsts Aizsardzibas Korporacija will also be tasked with accumulating, storing and renewing critical reserves through co-ownership of other enterprises in accordance with the needs defined by the Defense Ministry.

The company will also indirectly ensure the production and integration of military goods or components and technologies that are critically needed by the defense sector.

According to the Defense Ministry, by acquiring shares in other companies, Valsts Aizsardzibas Korporacija will prevent a cross-subsidation of the private partners.

The Defense Ministry will hold shares in Valsts Aizsardzibas Korporacija on behalf of Latvia.

The Defense Ministry is expected to file the application to register the company by December 31, 2023.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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