Latvia Economic and Fiscal Outlook

LATVIA HAS ALREADY SWITCHED FROM RUSSIAN GAS TO THE NEW ALTERNATIVES Baltic states, including Latvia, are well diversifying away from Russia gas Latvia has moved quickly and made timely decisions Latvia's access to global gas market is ensured by: 1. Primary gas channel with Klaipeda LNG floating terminal in Lithuania connection with Poland (GIPL) 2. A new floating LNG terminal in Estonia operational from Nov/Dec 2022 3. New LNG terminal in Latvia in 2-3 years - Skulte port, located near underground gas storage at Inčukalns. Inčukalns is a unique underground natural gas storage and the 3rd largest in Europe with the 21,8 TWh total technical capacity that exceeds Latvia's needs of ~12 TWh FINLAND BALTIC- CONNECTOR Paldiski LNG ESTONIA Skulte LNG LATVIA Incukalns Gas Storage 9 Latvia will ban the Russian gas import as of 1 January 2023 and challenges in short term lie ahead ■ In the period from 2011-2020 the proportion of natural gas consumption decreased by 8.5% and in 2020 it was 20.8% (of the total consumption of energy resources) ■ Latvia is well-prepared to tackle a possible energy shortage by creating strategic gas reserves Situation with high energy prices made the Government to adopt support packages for households and companies, as well as approve social benefits for most vulnerable Public sector prepares to apply the energy austerity measures for the heating season 2022/2023 Klaipeda LNG POLAND LITHUANIA GIPL PIPELINE

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