Entrepreneurs in Latgale are increasingly facing the consequences of regular warnings about a potential threat in the airspace. According to business representatives, investors are already refusing trips to the region, and enterprises are forced to halt operations after alarming notifications.
Regular warnings about a potential threat in the airspace are increasingly affecting the economy of Latgale. This was stated by Ivo Dembovskis, the chairman of the regional council of the Latvian Chamber of Commerce and Industry (LCCI), at a meeting of the Saeima subcommittee on Latgale.
According to him, after receiving notifications through the cellular alert system, some enterprises stop production, and employees go home. If the warning comes in the morning, some workers stay home with their children. As a result, enterprises face production disruptions, risks of contract non-fulfillment, and problems with credit obligations.
"This creates fear of investing in development," acknowledged the LCCI representative.
Dembovskis noted that the consequences affect not only the industry.
The Latgale Tourism Association has already reported a mass cancellation of bookings for the summer, which, in turn, impacts cafes, hotels, artisans, cultural events, and small businesses.
The LCCI representative mentioned that investors who previously showed interest in Latgale are now refusing to even visit the region. Some visits were planned for May and summer, but were subsequently canceled.
In fact, the border areas of Latvia are beginning to face a new type of economic pressure—not due to actual destruction, but because of a constant sense of instability and risk.
In recent months, residents of Latgale and parts of Vidzeme have regularly received warnings about a potential threat in the airspace due to the approach or intrusion of drones.
Earlier in Latvia, there were already recorded cases of drone crashes and explosions related to Russia's war against Ukraine. One such incident occurred on May 7 in Rezekne. Although no one was injured in these cases, the psychological effect on the region turned out to be significantly broader.
Andrey Zelchs, the head of the Latgale region of the Latvian Investment and Development Agency, also acknowledged that the border area may currently appear less attractive for business.
At the same time, he emphasized that no active enterprise has left the region yet, although such discussions are already emerging.
Business representatives believe that the alert system needs improvement. According to Dembovskis, the messages should be more specific so that enterprises and institutions can independently assess the level of risk and make decisions about continuing operations.
Against the backdrop of growing anxiety in the region, the LCCI is also urging authorities to actively promote a special law for the development of the eastern border territory.
Currently, the discussion about security in Latgale is gradually moving beyond just military topics—more often, it is about the long-term consequences for the economy, investments, and the future of the region.
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