Latvia is seeing a rise in disputes and public infrastructure work, according to Klauberg Baltics Managing Partner Theis Klauberg. At the same time, corporate activity is slowing, as regional and global uncertainties reshape priorities for both firms and clients.
“In Latvia, in recent months, disputes have become increasingly representative of market dynamics, and it’s evident that law firms are dedicating more time and resources to these areas,” Klauberg says. “One of the key drivers behind this trend is the activity of financial institutions operating in the region. With the Baltics emerging as a hub for fintech and financial services – Revolut and various other payment providers among them – there has been a surge in fraud cases and questionable financial activities. This has led to a growing number of claims being filed against account holders involved in these schemes.”
The driver behind increased disputes, according to Klauberg, is also legislation. “Latvia, in particular, has undergone a major overhaul in arbitration law,” he points out. “Not only has the legal framework changed, but also the structure, including which institutions are in charge, has shifted. This reform has effectively redrawn the arbitration map, and it’s a welcome update.”
Klauberg draws attention to a slight decrease in terms of M&A in Latvia. “The proximity to Russia has made the region less attractive for some large US investors, who now consider it a higher-risk area,” he says. “More broadly, companies are delaying expansion plans due to general uncertainty. Corporate and M&A work continues, but we’re seeing less of it in the Baltics.”
Klauberg also highlights the increase in public funding. “In terms of infrastructure, there’s a lot happening in the Baltics, particularly in Latvia,” he says. “While Estonia and Lithuania are also seeing developments, Latvia stands out thanks to a strong pipeline of public investment. Major EU-funded infrastructure projects are either underway or in planning stages across the region.” In particular, in Latvia, “several high-profile projects are in progress, including a new fast-train connection, a complete airport overhaul, new bridge constructions, and the development of a tram system in Riga,” Klauberg adds. “These projects are largely funded by the EU. Even before the COVID-19 pandemic, much of the infrastructure spending in the region came from EU funds. This trend is expected to continue, providing long-term, high-value work for law firms focused on public procurement and infrastructure.”
Looking ahead, Klauberg believes that dispute resolution, “especially cases involving private individuals, as well as inheritance and succession planning, are likely to remain hot practice areas. While corporate work is tapering off, the focus is shifting to individuals and families seeking legal guidance on managing assets and navigating inheritance.”
