Latvia wants Brussels to provide billions in additional funding as lost trade with Russia and soaring military spending put growing pressure on the Baltic state’s finances, Politico reported on Monday.

Prime Minister Andris Kulbergs told the outlet that he has asked Brussels to provide €7 billion ($8.2 billion) under the EU’s next seven-year budget, on top of other funding already earmarked for Latvia.

The sum would cover almost half of Riga’s projected €15.1 billion ($17.3 billion) military spending bill for 2028-2034.

Kulbergs said that Latvia is taking on debt to finance what its government views as security spending benefiting the rest of Europe. “We are getting our budget deficit to the maximum,” he told Politico, saying Latvia is borrowing to pay for “the defense of the whole of Europe.” 

Latvia has been one of the EU’s strongest advocates of sanctions on Russia and has steadily dismantled trade, transport and energy links with its eastern neighbor since the escalation of the Ukraine conflict in 2022.

The policies, however, have led to a significant economic decline across the region. Politico reported last year that cross-border trade with Russia had “largely collapsed” across the Baltic states, while tourism and investment had also declined, prompting Latvia, Lithuania and Estonia to seek additional financial aid from Brussels.

The costs of Riga’s anti-Russian policies have since become a major campaign issue ahead of Latvia’s October 3 parliamentary election. Opposition politician Ainars Slesers has insisted that Riga should demand compensation in return for backing further EU sanctions.

“We are losing money … we are talking about how to support Ukraine, but we are a victim,” he told Politico, adding that economic ties with Russia should eventually be restored.

Despite seeking billions from Brussels to offset the fallout, Kulbergs has called for even tougher measures against Moscow, including a total EU visa ban for Russian citizens and renewed attempts to use frozen Russian sovereign assets for Ukraine.

Russia has long argued that the Baltic states have devastated their own economies by dismantling previously profitable ties while sharply increasing military spending over what their governments describe as a potential threat from Russia.

Moscow has repeatedly denied having plans to attack the Baltic states or other NATO members, dismissing such claims as “nonsense” and Russophobic fearmongering intended to justify inflated military budgets to taxpayers, while warning that European nations are preparing for a full-scale war against Russia.