Legislative Review April 24–30, 2026
REAL ESTATE AND CONSTRUCTION
– Updates the construction standard for electronic communication networks
ENERGY
– Regulations on requirements for the independence of the electricity distribution system operator
– SPRK has approved system connection rules for electricity distribution and transmission systems
– Two environmental impact assessments for wind farm parks approved
– Informative report adopted on the expediency of further application of the law on the simplified construction procedure for energy supply structures necessary to promote energy security and independence
– Informative Report: Possible solutions for paying increased heating bills
– Amendments to the Electricity Market Law aim to improve the legal framework for the operation and decommissioning of wind power plants
– Interpretation and application of the Energy Charter Treaty
– Two cases initiated in the Constitutional Court regarding VARAM’s order suspending municipal binding regulations on the construction of wind power plants and the placement of solar panels in the territories of Preiļi and Bauska municipalities as unlawful
REGULATED LAW
INTELLECTUAL PROPERTY (IP) & INFORMATION TECHNOLOGY (IT) & DATA PROTECTION
ENVIRONMENTAL LAW
TAXES
– Amendments to the Value Added Tax Law
– Board member’s liability for the company’s tax debt
– Natural resource tax for foreigners
CUSTOMS
– On the opening of tariff quotas for products originating in Mercosur
– Inquiry “On the application of export procedure in ship supply”
SANCTIONS
DISPUTE RESOLUTION
REAL ESTATE AND CONSTRUCTION
Regulatory Acts
Updates the construction standard for electronic communication networks (Project ID: 25-TA-2417)
Adopted at Cabinet meeting on April 28, 2026
Amendments to Cabinet Regulations No. 328 on Latvian Building Standard LBN 262-15 “Electronic Communication Networks” were developed to update the requirements of the building standard in accordance with the latest technologies, safety standards, and European Union legislation. The amendments provide for recommending to the national standardization institution which standards should be applied in the construction of electronic communication networks. In addition, clear minimum requirements will be set, for example, for optical cable specifications and bending radius. It will also stipulate that single-mode optical fiber or another very high-performance solution must be used in the internal communication infrastructure of buildings.
ENERGY
Regulatory Acts
Regulations on requirements for the independence of the electricity distribution system operator (Promulgated)
Entered into force on April 29, 2026
The amendments were developed to ensure the compliance of the Regulations with the amendments to the Electricity Market Law, which stipulated that the requirements for ensuring the independence of the electricity distribution system operator apply to the council, board, and authorized signatories. Namely, sub-paragraphs 2.1. and 2.2. of the Regulations on requirements for the independence of the electricity distribution system operator have been amended, stipulating that they include not only board members but also council members and authorized signatories.
Henceforth, the system operator will submit to the Regulator the articles of association and contracts with council members, board members, and authorized signatories, certifying that one person does not simultaneously work for both the system operator and companies engaged in electricity generation, transmission, or trade. There must also be an assurance that the system operator’s council, board members, and authorized signatories can independently make decisions regarding assets necessary for the maintenance and development of the distribution network, and that these rights are not affected by the parent company or other related entities. Supporting documents, such as remuneration policy, must also be attached to the assurance.
SPRK has approved system connection rules for electricity distribution (Regulations) and transmission systems (Regulations)
Adopted on April 23, 2026; Entered into force on May 1, 2026
The system connection rules define the procedure for establishing a new connection or changing the technical parameters of an existing connection, as well as the conditions for connecting users, electricity generation facilities, and storage facilities, notifying the start of operation, and inspection. Until now, the procedure for electricity system connections was determined by three separate regulations; however, SPRK has improved the regulation, developing two new regulations instead of the previous three.
The electricity distribution system connection rules will additionally define the methodology for determining connection fees for end-users.
In the electricity transmission system, the procedure for reserving capacity has been clarified, stipulating that it will henceforth be carried out at the time of concluding the connection agreement, not at the stage of issuing technical requirements, thereby preventing situations where system capacity is reserved at an early stage of project development.
Two environmental impact assessments for wind farm parks approved
Adopted at Cabinet meeting on April 28, 2026
Environmental impact assessments approved for the wind farm “EKO Ziemeļi”(Project ID: 25-TA-2704) in Kuldīga municipality, and “Kurzeme” (Project ID: 25-TA-2790)in Saldus and Kuldīga municipalities. This decision serves as a prerequisite for the further development of construction design documentation and obtaining the necessary permits in accordance with regulatory acts.
Postponement of the issue regarding the approval of the environmental impact assessment for the wind farm “K2 Ventum” (Project ID: 25-TA-2896) in Dienvidkurzeme and Kuldīga municipalities. The Ministry of Economics is invited to conduct additional public participation measures and prepare an additional assessment.
Informative report adopted on the expediency of further application of the law on the simplified construction procedure for energy supply structures necessary to promote energy security and independence (Informative Report)
Adopted at Cabinet meeting on April 28, 2026
The Law on the simplified construction procedure for energy supply structures necessary to promote energy security and independence was developed under extraordinary circumstances after Russia’s full-scale invasion of Ukraine, when energy security, diversification of energy supplies, and increasing local energy production capacities became particularly relevant in the European Union and Latvia.
In the Cabinet’s Informative Report, evaluating practical considerations and the current factual situation, it was concluded that the mentioned regulation, which aims to promote the development of renewable energy sources (RES) and accelerate RES projects, is not relevant in the current situation and should be repealed.
It is stipulated that the Ministry of Climate and Energy (KEM) has a duty to prepare and submit to the Cabinet for consideration a draft law on the repeal of the law by April 30, 2026, including transitional regulation regarding applications received before the law loses effect. Also, KEM must prepare and submit to the Saeima by April 30, 2026, proposals for the draft law “Amendments to the Law “On Environmental Impact Assessment”” for the second reading.
Informative Report: Possible solutions for paying increased heating bills (Project ID: 26-TA-486)
Adopted at Cabinet meeting on April 28, 2026
The report states that January and February 2026 were the coldest in Latvia during the last 15 heating seasons, with air temperatures reaching -30°C in some places. This led to a significant increase in heat energy consumption. The report also emphasizes the importance of state support mechanisms, particularly highlighting the protected user service, which provides certain groups of residents with a reduction in electricity bills of up to 25 euros, as well as housing benefits intended for low-income households. As a next step, the report proposes the need for KEM, in cooperation with the Public Utilities Commission (SPRK), to evaluate the necessity of improving the regulatory framework in the field of heat supply, including payment procedures and user rights.
Draft Regulatory Acts
Amendments to the Electricity Market Law aim to improve the legal framework for the operation and decommissioning of wind power plants (Project ID: 26-TA-977)
Submitted to Cabinet for coordination from April 28, 2026 – May 5, 2026
A delegation is established for the Cabinet of Ministers (MK) to determine the operational requirements for wind power plants. The regulations must include permissible noise levels, the obligation to prevent flicker effect, and specify the technical equipment required to comply with nature protection, environmental, and safety requirements.
Additionally, it is planned to stipulate that electricity producers and storage operators are obliged to fully decommission their facilities after their operational life ends. This means that the system operator must be notified of the disconnection of the facility, the facility must be dismantled by the operators themselves, and all waste generated during dismantling must be collected and managed.
Interpretation and application of the Energy Charter Treaty (Draft Law No. 1338/Lp14)
Submitted to Saeima on April 30, 2026
An agreement (understanding) on how Latvia and EU countries interpret and apply the international treaty – the Energy Charter Treaty (ECT). This will serve as an additional legal instrument that an EU Member State can use in its arguments in international arbitration when an investor from another EU Member State brings a claim against it.
It is stipulated that Article 26 of the ECT, which defines the procedure for resolving disputes between an investor and a contracting party, cannot and never could serve as a legal basis for intra-EU arbitration proceedings. It is also stipulated that the sunset clause, which applies the obligations of this agreement for another 20 years after withdrawal to a contracting party withdrawing from the ECT, cannot be applied to intra-EU arbitration proceedings.
Case Law
Two cases initiated in the Constitutional Court regarding VARAM’s order suspending municipal binding regulations on the construction of wind power plants and the placement of solar panels in Preiļi (Case No. 2026-05-05) and Bauska (Case No. 2026-06-05) municipalities as unlawful
Case initiated on April 28, 2026
Two cases have been initiated in the Constitutional Court regarding the orders of the Minister of Smart Administration and Regional Development following applications from the Preiļi Municipality Council and the Bauska Municipality Council.
The order of the Minister of Smart Administration and Regional Development suspended the operation of the Preiļi Municipality Council’s binding regulations in the part concerning the construction of wind power plants and the placement of solar panels. Meanwhile, the operation of the Bauska Municipality Council’s binding regulations was suspended in the part that sets restrictions on the establishment of wind farms, requirements for the extraction of mineral resources, regulations for the placement of wind power plants and solar panels, regulations for buildings for farm animals, and regulations for specific territories.
The councils of both municipalities state in their applications that the Minister of Smart Administration and Regional Development has disproportionately interfered with their competence, as the municipality has the right to impose restrictions on the construction of wind generators and the placement of solar panels in its territory. The disputed acts are allegedly unlawful, and the arguments contained therein regarding the non-compliance of specific binding regulation norms with legal norms are unfounded.
REGULATED LAW
Case Law
A party member’s gratuitous professional service is considered a donation, not simple political participation (Case No. SKA-130/2026)
Judgment adopted on April 28, 2026
A political party received a gratuitous service from a member, the production of video materials, valued at 6,000 euros. The Corruption Prevention and Combating Bureau, considering that the value of the service exceeded the statutory limit for gifts (donations), obliged the political party to reimburse a portion as illegally obtained financial resources. The Regional Court overturned this decision, emphasizing that a member’s work is an expression of political participation, not a classic financial donation.
The Senate emphasized that ordinary member participation (e.g., voluntary work) must be distinguished from professional services with significant market value. The restrictions of the Law on Party Financing also apply to services provided by party members with monetary value, which are usually provided within the framework of professional or commercial activities. In this specific case, the production of video materials for a large sum is more akin to a professional service to which the legal restriction applies.
INTELLECTUAL PROPERTY (IP) & INFORMATION TECHNOLOGY (IT) & DATA PROTECTION
Case Law
ECJ judgment on whether the retransmission of television and radio broadcasts received via satellite dish to nursing home rooms using a cable system constitutes an infringement of EU law (Case No. C-127/24)
Judgment adopted on April 30, 2026
The German copyright administration filed a claim in the German courts, demanding that the nursing home operator be prohibited from retransmitting television and radio programs in the nursing home. The administration considered that such retransmission of musical works required a license, while the operator receives programs via satellite and retransmits them unchanged and unedited, using its cable network, to connections installed in residents’ rooms and care facilities. The German Federal Supreme Court asked the ECJ to clarify the scope of the term “communication to the public” within the meaning of Directive 2001/29 on copyright. According to this directive, Member States must ensure authors exclusive rights to authorize or prohibit any communication to the public of their works.
The Court finds that, by retransmitting television and radio programs received via satellite dish to nursing home rooms using a cable system, such an operator of a nursing home does not make a “communication to the public”. First, the Court finds that the retransmission of broadcasts such as those in the main proceedings cannot be considered to have been made using “specific technical means” (this would be, for example, if a terrestrial television broadcast were retransmitted on the internet). Second, nursing home residents do not constitute a “new public”; rather, they are to be considered part of the public that the right holder has already taken into account when he or she authorized the initial communication to the public of his or her work.
ENVIRONMENTAL LAW
Industry News
Material developed to prevent unfair practices regarding misleading environmental claims, sustainability labels, and premature obsolescence of goods (available here)
To help understand the new regulation of the Law on Prohibition of Unfair Commercial Practices and its practical application, the Consumer Rights Protection Centre (PTAC) has developed the material “Green Claims and Sustainability: Rules for Fair Commercial Practices”.
Last April, the draft law “Amendments to the Law on Prohibition of Unfair Commercial Practices” was adopted, which will enter into force this September (September 27, 2026). The amendments will introduce stricter requirements for the use of green claims, sustainability targets, and environmental claims in commercial practice.
TAXES
Draft Regulatory Acts
Amendments to the Value Added Tax Law (Draft Law No. 1329/Lp14)
Submitted to Saeima committee on April 30, 2026
The aim of the draft law is to reduce the financial burden on families with young children by lowering the price of essential goods – infant and young child formula and diapers.
The draft law provides for the introduction of a reduced rate of 5% for the purchase of infant and young child food products, as well as for the purchase of diapers intended for children up to three years of age.
These goods are necessary for daily life and often constitute a significant part of household expenses, especially for low- and middle-income families. The currently applicable standard value-added tax (VAT) rate for these goods increases their price and reduces their accessibility.
Case Law
Board member’s liability for the company’s tax debt (Case No. A420131924)
Judgment adopted on April 24, 2026
The State Revenue Service (VID) obliged the former board member of a commercial company to reimburse the company’s tax debt of more than 133 thousand euros. It was found that during the board member’s term of office, the company accumulated a significant tax debt exceeding the statutory threshold, and recovery from the company itself was not possible. The Service also concluded that after the tax debt arose, cash was withdrawn from the company’s account, the use of which was largely not proven.
The Administrative Regional Court rejected the former board member’s application for the annulment of the decision. The Court recognized that the applicant had not provided credible and consistent evidence of the use of these funds in economic activity, and therefore it qualified as asset alienation. It was also found that the applicant had not fulfilled the obligation to timely submit an insolvency application, although the company had been unable to cover its liabilities for a long time. The Court concluded that all criteria stipulated in the Law “On Taxes and Fees” were met to impose liability on the former board member for the commercial company’s tax debts. Furthermore, it was emphasized that the exclusion of the company from the commercial register does not in itself relieve the board member of liability if the tax debt has not been settled. Consequently, the applicant is obliged to reimburse the company’s tax debt.
Industry News
Natural resource tax for foreigners (Methodological material)
Material updated on April 28, 2026
Informs foreign companies and foreigners conducting commercial activities in Latvia about the new natural resource tax (DRN) object for unprocessed wood, sold outside the European Union or European Economic Area countries, on the application of DRN to electronic smoking devices, as well as on changes in the tax rate for the extraction of natural resources for peat.
CUSTOMS
Industry News
On the opening of tariff quotas for Mercosur originating products (read more here)
VID published on April 24, 2026.
The European Union (EU) adopted Implementing Regulation (EU) 2026/888, which establishes how Regulation (EU) 952/2013 applies to the opening and management of Union tariff quotas for products originating in Mercosur. It entered into force on April 22, 2026, and will apply from May 1, 2026.
Union tariff quotas are opened and applicable customs duties are reduced or abolished for goods originating in the Southern Common Market (Mercosur) listed in Annex to Implementing Regulation (EU) 2026/888.
Inquiry “On the application of export procedure in ship supply” (Inquiry)
Inquiry published on February 28, 2026
The applicant and SIA provide services for four ferries with liner status, two of which operate routes to Sweden and two to Germany. The mentioned routes are recognized ferry lines. All ferries operate under the management of a Joint Stock Company, and their home port and flag are Denmark, an EU Member State.
The applicant requested an inquiry regarding the necessity of applying an export customs declaration without exception in all cases of ferry supply in Latvia, as well as regarding the application of simplified procedures in accordance with the Union Customs Code and the Commission Delegated Regulation, to ensure a uniform interpretation of the regulatory framework in customs practice.
VID acknowledged that an export declaration is necessary if a 0% VAT rate or excise duty exemption is applied to the supplied goods. If such tax reliefs are not applied, a supporting document (consignment note) is sufficient. For small consignments (if ≤1000 EUR and ≤1000 kg are met), oral declaration can be used. Simplified customs procedures (with authorization) can also be used.
SANCTIONS
Industry News
For attempting to violate sanctions imposed by the European Union – a fine of more than EUR 10,000 (Prosecutor’s Office of the Republic of Latvia)
2026. In April, the Riga City Court approved the agreement concluded by the prosecutor of the Tax and Customs Affairs Prosecutor’s Office with the accused on admitting guilt and punishment in a criminal case for attempting to violate sanctions imposed by the European Union.
For the committed criminal offense, the person was fined EUR 10,140, and two legal entities were subjected to coercive measures – one, in whose interests the attempt to violate EU sanctions was made, by applying liquidation, and the other, due to whose improper control the accused committed the criminal offense, a monetary recovery of EUR 17,940.
DISPUTE RESOLUTION
Regulatory Acts
Amendments to the Operational Activities Law (Draft Law No. 1252/Lp14)
Submitted for third reading on April 28, 2026.
The amendments were prepared in response to the judgment of the Supreme Court Senate in the so-called construction company cartel case, which concluded that the current regulation of the Operational Activities Law does not provide for the possibility of using wiretapping materials obtained during operational activities in administrative proceedings to prove competition law infringements.
The amendments stipulate that information obtained during operational activities may be transferred to other institutions if it is necessary to protect significant state or public interests and if the volume and content of the information to be transferred do not cause disproportionate interference with a person’s fundamental rights.
Information obtained during special operational activities may be transferred to other institutions for initially unforeseen purposes only with the consent of the Chief Justice of the Supreme Court or an authorized Supreme Court judge. For the transfer of information obtained during general operational activities, the consent of the Prosecutor General or an authorized prosecutor will be required.
Case Law
Defamation of a customs official on “Instagram” (Case SKK-191/2026)
Decision adopted on April 14, 2026
During customs control at Riga Airport, the accused filmed a customs officer performing official duties with his mobile phone, while loudly expressing rude and vulgar fabrications that the customs officer had acted unlawfully, used violence during the inspection, and offered the accused to perform acts of a sexual nature. The accused posted the mentioned video recording on his Instagram profile, making it publicly available to a wide range of users.
The Riga District Court found the mentioned actions proven and issued a guilty verdict, finding the accused guilty of defamation and sentencing him to 140 hours of community service, as well as ordering the recovery of 5,000 euros in moral damages in favor of the victim.
Companies can only be reimbursed for additional costs incurred in connection with the continuation of the inspection at the Commission’s premises (Case No. T-682/24)
Judgment adopted on April 22, 2026
In March 2023, the European Commission conducted an inspection at the premises of Red Bull GmbH (Austria), and its subsidiaries Red Bull France SASU (Paris) and Red Bull Nederland BV (Zesterberg), in connection with an investigation into a possible infringement of competition law. After the inspection at the company’s premises, the Commission continued to conduct inspections at the Commission’s premises to examine the large number of documents. In addition to Red Bull’s usual legal office, the company was also assisted by a second legal office located in Brussels, which was assigned for this purpose.
Red Bull later asked the Commission to reimburse the expenses incurred by the company due to the continuation of the inspections at the Commission’s premises. The company considers these costs to be additional costs that can be reimbursed in accordance with established ECJ case law.
By decision of October 23, 2024, the Commission rejected the part of the reimbursement request relating to the fees of both legal offices. It considered that these costs could not be regarded as “additional” costs, as they would have been incurred by Red Bull in any event if the inspection had been carried out entirely at its premises.
The General Court of the European Union rejects Red Bull’s action against this decision. The General Court notes, in particular, that the term “additional costs” refers only to additional costs incurred in carrying out the inspection at the Commission’s premises, compared to the costs that the company would have incurred if the inspection had been continued at its premises, and which relate only to this inspection at the Commission’s premises. In this case, legal assistance had already been provided during the inspection carried out at Red Bull’s premises and would likely have continued throughout the inspection if it had been continued at Red Bull’s premises. Therefore, the total amount paid in connection with this assistance cannot be considered “additional costs” incurred solely because the inspection was continued at the Commission’s premises.
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VIKTORIJA Cherkas
PARTNER, ATTORNEY AT LAW
Viktorija is a Latvian legal expert recognized by international directories in project management and mergers and acquisitions (M&A), including energy projects (development of wind and solar park projects).
Viktorija also provides legal advice for day-to-day business operations – from company formation, management, shareholder relations, restructuring, and other business-related matters. At the same time, Viktorija is an expert in real estate development, acquisition, and leasing, and provides assistance to individuals and companies regarding relocation or property acquisition in Spain.
ALISA LEŠKOVIČA
PARTNER, ATTORNEY AT LAW
Alisa is an experienced advocate and a partner at RockBridge Legal. Since 2008, Alisa has advised clients and provided legal assistance in complex tax and customs matters.
Alisa also specializes in anti-money laundering (AML), sanctions, and compliance matters. Alisa has significant experience in corporate crime and investigation cases related to tax, customs, and sanctions issues.
Viktorija Jarkina-Toča
PARTNER, ATTORNEY AT LAW
Dr. iur. Viktorija Jarkina is a partner at RockBridge Legal, ranked by international legal directories Chambers Europe, Chambers Global, Best Lawyers, and Legal 500 among the leading criminal defense attorneys in Latvia.
Viktorija specializes in shareholder disputes, civil and commercial litigation, as well as criminal law, providing representation and defense in white-collar crime cases, including money laundering and environmental offenses. Additionally, Viktorija has extensive experience working with franchises, providing full legal assistance related to franchising.