RIGA, June 17 (LETA) - Latvia's northeastern municipality of Aluksne will be included in the Latgale Special Economic Zone (SEZ).

Aluksne is to become part of the Latgale SEZ under amendments to the Law on the Application of Taxes in Free Ports and Special Economic Zones and the Law on the Latgale Special Economic Zone, which the government approved on Tuesday.

The Smart Administration and Regional Development Ministry noted that the amendments are intended to boost the competitiveness, exports and productivity of the businesses based in Latvia's eastern border area, which is defined as all the municipalities of the Latgale planning region and the municipality of Aluksne bordering Russia.

As of February 2025, the Latgale SEZ authority had concluded 80 contracts with companies operating in the Latgale SEZ whose total investments make up EUR 109.08 million. The contracts provide for the creation of 667 new jobs.

The companies operating in the Latgale SEZ include fiber-optic manufacturer Light Guide Optics International in Livani and industrial yarns maker Nexis Fiber in Daugavpils.

Aluksne municipality's inclusion into the Latgale SEZ is foreseen in The Action Plan for Security and Growth on the Eastern Border 2025-2027.