Statement on a Military Production Project

The Ministry of Defence issues an opinion to commercial entities on the compliance of military projects with essential security interests related to the manufacture of weapons, ammunition, and military equipment (hereinafter referred to as the opinion). Such an opinion may be necessary for a business for various purposes.

In order to receive an opinion, a business must:

a) submit an application to the Ministry of Defence, requesting an opinion on the project's compliance with essential security interests and indicating the specific purpose for which the statement is intended (see objectives below); 
b) the application must be accompanied by the form "Description of the compliance of a military production project with essential security interests related to the production of weapons, ammunition and military equipment". The form is available in the "Related documents" section.

The procedure for applying for a statement and the deadline for receiving it may differ for commercial entities with and without a special permit (license). See the detailed explanation below.

Once a business has completed the form "Description of the compliance of a military production project with essential security interests related to the production of weapons, ammunition, and military equipment" the information provided therein is classified as restricted access information.

1. The Green Corridor Initiative

As part of the initiative, companies registered in Latvia that plan to implement investment projects in priority sectors have the opportunity to receive public administration services in the areas of construction, spatial planning, and migration on a priority (accelerated) procedure by applying for and obtaining priority investment project status. Military production projects are a priority, given their strategic importance and connection to national security interests. The initiative is coordinated by the Investment and Development Agency of Latvia (LIAA). 

More information:

2. Statement on the support from the development finance institution Altum

The large investment program is intended for the implementation of significant investment projects with state support of up to EUR 10 million per project. The program is implemented by the Investment and Development Agency of Latvia (LIAA) and the development finance institution Altum. In the new, fourth round, the range of potential beneficiaries has been expanded to include military production projects. Support granted to military production projects under this program does not qualify as commercial (state) aid if an opinion has been received from the Ministry of Defence. 

More information:

The credit guarantee program is intended as additional security for a company's obligations to a bank and is issued to companies that do not have sufficient collateral to obtain a loan or to obtain a loan in the required amount, but have a transparent financial history and positive creditworthiness. Support granted under this program to military production projects does not qualify as commercial (state) aid if an opinion has been received from the Ministry of Defence.

More information:

  • Regulations on guarantees for economic operators to improve competitiveness
  • Credit guarantees
  • Contacts for questions: Varis.Prudnikovs@mod.gov.lv

3. Statement on military production facilities or storage facilities that are important for national defence

Statement is intended for submission to the State Environmental Service in order to apply an exception to the industrial accident risk assessment procedure and risk reduction measures. The opinion is issued only to military production facilities or storage facilities that are important for national defence and have been recognized as such by the Ministry of Defence, in cases where the protection of state secrets must be ensured. 

More information:

Procedure for submitting opinions and deadline for receipt 

  • Businesses with a special permit (license)

If a business already has a special permit (license) for commercial activities involving goods listed in the European Union's Common Military List and the business is planning or already implementing a military production project and wishes to take advantage of the Green Corridor initiative, then the business can immediately submit an application to the LIAA, attaching the form "Description of the compliance of the military production project with essential security interests related to the production of weapons, ammunition and military equipment". 
A  business with a special permit (license) can apply to the Development Finance Institution Altum or the State Environmental Service after receiving the opinion of the Ministry of Defence.

For businesses that have been issued a special permit (license), project evaluation usually takes place within a shorter period of time, provisionally up to 10 working days.

  • Businesses without special permits (licenses):

If a business does not have a special permit (license) for commercial activities involving goods listed in the European Union Common Military List and the business plans or is already implementing a military production project, the application for a special permit (license) takes place in two stages:

1) First, the business must submit an application to the Ministry of Defence, requesting an opinion on the project's compliance with essential security interests, indicating the purpose of the required opinion. The application must be accompanied by the form "Description of the compliance of a military production project with essential security interests related to the production of weapons, ammunition and military equipment". The form is available in the "Related documents" section.

2) After the assessment, the Ministry of Defence will inform the merchant about the statement given. The issuance of the opinion may take up to four (4) months, depending on the specifics of the commercial entity's activities, the complexity of the project, and the amount of information submitted. The Ministry of Defence has the right to extend the aforementioned deadline by notifying the commercial entity in writing.

Important information!

Commercial activities involving goods listed in the European Union Common Military List require a special permit (license) issued by the Ministry. Completing the description and receiving a positive statement is not considered part of the licensing process and does not replace the necessary official permits or certificates.

 

Related documents