In 2026 and the following two years, state-owned companies in Latvia will be required to pay 90% of their profits as dividends into the state budget, according to an information report prepared by the State Chancellery for discussion at Tuesday’s government meeting, titled “On Possible Revenue Increases from State-Owned Enterprises.”
The report has restricted access status, meaning its full content is not publicly available.
Under the 2025 state budget law, state-owned companies, public–private companies, and companies controlled by public entities in which the state is a shareholder must allocate at least 70% of their annual profits as dividends in 2025.
The draft Cabinet protocol decision specifies that, during the preparation of the draft law “On the State Budget for 2026 and the Medium-Term Budget Framework for 2026, 2027, and 2028”, the Ministry of Finance (MoF) must take into account that the minimum projected share of profits to be paid as dividends by these companies will be 90% of annual profits.
This level of dividend payments is planned for 2026 (for 2025 profits), 2027 (for 2026 profits), and 2028 (for 2027 profits). At the same time, the protocol draft notes that the Cabinet of Ministers may decide, under established procedures, to set a different dividend payout ratio.
For several large state-owned companies – AS Latvenergo, AS Latvijas valsts meži, AS Augstsprieguma tīkls, AS Latvijas Loto, and SJSC Latvijas Valsts radio un televīzijas centrs – the State Chancellery, together with the shareholders and with MoF involvement, must by the 15th of September evaluate and propose dividend levels of at least 90% of annual profits for 2026–2028,
taking into account unimplemented investments, planned medium-term strategies, and other conditions.
The MoF will also be tasked with assessing legal amendments to allow for a related lottery scheme to increase Latvijas Loto payments to the state budget, and to submit an information report on the implementation by the 30th of December, 2025.
The Ministry of Agriculture, based on its own proposal, must evaluate amendments to the Cabinet’s order “On the Maximum Permitted Logging Volume for 2026–2030.” The Minister of Agriculture will be required to submit proposals by the 31st of October for changes to related legal acts, including the Law on the Protection of Species and Habitats, the Law on Environmental Impact Assessment, the Forest Law, Cabinet regulations on forest logging, procedures for assessing damage to forests, procedures for environmental impact assessments, procedures for the State Environmental Service to issue technical terms and approve planned activities, as well as regulations on restrictions on economic activities subject to compensation, including their payment terms, procedures, and amounts.
The Ministry of Transport will be tasked with evaluating proposals from Latvijas Valsts ceļi, SJSC Latvijas pasts, and SJSC Autotransporta direkcija regarding delegated task costs, potentially reducing set quality or oversight requirements, and to continue evaluating the possible IPO of Latvijas autoceļu uzturētājs.
By the 31st of Ocotber, the Minister of Transport must submit a proposal to the Cabinet instructing Autotransporta direkcija to assess impacts and propose solutions to ensure that residents without access to cashless payment options are not deprived of access to public services and mobility.
By the 30th of December, 2025, the Minister of Transport must also submit proposals to review requirements for Latvijas pasts, in the broader context of the ministry’s evaluation of changes to the universal postal service (UPS) model.
The Ministry of Climate and Energy (MoCE) will be tasked with evaluating Augstsprieguma tīkls’s proposal to redirect congestion fee revenues when calculating the electricity transmission system tariff project. MoCE must also review the Latvian Environment, Geology and Meteorology Centre’s proposal to amend its paid service price list.
All state shareholders will be instructed to review the investment plans of state-owned companies and evaluate additional resource needs for implementing investments, using coordination body guidelines for alternative financing instruments for state-owned enterprise projects, and to avoid leaving retained earnings as the only source of financing.
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