Latvia Economic and Defence Update

LATVIA HAS ALREADY SWITCHED FROM RUSSIAN GAS TO THE NEW ALTERNATIVES Baltic states, including Latvia, are well diversifying away from Russian 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 and Lithuania-Poland interconnection (GIPL) 2. New floating LNG terminal in Finland operational since Jan 2023 3. Possibly, an 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 annual needs of ~12 TWh 9 Latvia banned the Russian gas import on 1 January 2023, alternative gas supplies provide security ■ In 2022, annual gas consumption decreased naturally by over 40%, from 12,7 TWh in 2021 to 8,8 TWh in 2022. ▪ Latvia is well-prepared to tackle a possible energy shortage by creating gas energy security reserves of 1.8 TWh in 2023 ■ 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 applies the energy austerity measures for the heating season 2022/2023 FINLAND BALTIC- CONNECTOR Inkoo LNG ESTONIA Skulte LNG LATVIA Inčukalns Gas Storage Klaipeda LNG POLAND LITHUANIA GIPL PIPELINE

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