AGP Executive Report

Energy & Industry Policy: Austria, Czechia, Hungary, Slovakia and Poland are pushing the EU to tweak the carbon market, arguing ETS costs squeeze steel, cement and chemicals while competitors outside Europe don’t face the same carbon price. Transport & Logistics: Drought-driven low water levels are putting pressure on Danube shipping, with Austria and Hungary at odds over restrictions tied to cooling needs at Hungary’s Paks nuclear plant. EV Manufacturing: Poland is pitching a new electric-vehicle hub in Jaworzno (Silesia) to keep more tech, skills and value in Europe as battery-electric registrations surge. EU Energy Markets: Diesel prices across the EU hit a new record average of €2.23/litre, driven by supply disruptions and refinery damage. Slovakia Health & Skills: A Slovak insurer’s structured type-2 diabetes education program is linked to sharply lower death risk, reinforcing the value of scalable prevention. Battery & Local Industry: InoBat’s Nasdaq filing points to 2025 losses and confirms its 20% stake in a Gotion-backed 20 GWh battery cell JV in Šurany, targeting production in 2027. Semiconductors: EU ministers debate Chips Act 2.0, focusing on reducing dependencies across the semiconductor value chain.

EU Industrial Policy: EU ministers debated Chips Act 2.0, aiming to cut semiconductor dependencies and boost demand across the value chain, with calls to back power semiconductors, photonics, quantum tech, advanced packaging and design. Energy Costs for Industry: Diesel prices across the EU hit a record €2.23/litre, driven by Middle East and Ukraine supply shocks and refinery damage—Slovakia among countries reaching prior highs. Carbon Market Pressure: Austria, Czechia, Hungary, Slovakia and Poland pushed Brussels for ETS changes that give carbon-intensive industry more time and flexibility, warning of competitiveness losses to non-EU producers. Auto Supply Chain Shift: Poland’s planned EV hub in Jaworzno would combine production, suppliers and research, reflecting Europe’s move toward electrification and more localized supply chains. Trade & Logistics: A Danube shipping dispute tied to drought-linked river restrictions is testing Austrian-Hungarian cooperation, with knock-on effects for freight reliability and costs. Sanctions Watch: Estonia imposed national sanctions on Russian oligarchs Usmanov and Fridman after EU delisting, while the wider EU compromise continues to spark political backlash. Health with Industrial Relevance: A Slovak cohort study links structured type-2 diabetes education in insurer-run programs to sharply lower early death risk, adding momentum to scalable, low-cost prevention models.

Energy Prices: EU diesel has hit a record €2.23 a litre, with wars and refinery strain pushing costs higher across 19 member states. EU Energy Mix: Eurostat shows renewables still lead EU power generation at 54.1% in Q2 2026, but gas output rose while renewables growth lagged—raising pressure for more solar and a diversified mix. Slovakia Fuel Policy: Slovakia plans to cap fuel retail margins from October as governments scramble to blunt record fuel prices and “diesel tourism.” Automotive & Industry Moves: MG Motor will take direct control of its Czech and Slovak operations, shifting from importer-led to company-run sales and aftersales. Retail Reshuffle: Schwarz (Lidl/Kaufland) is reported to be eyeing Tesco’s Czech and Slovak businesses as Tesco retreats from parts of Europe. Manufacturing Restructuring: Volkswagen’s Martin plant in Slovakia is set to switch from passenger-car parts to lorry components, with MAN potentially involved—raising job and wage uncertainty. Defense & Security: Europe is stepping up drone surveillance and air defense, while Slovakia’s PM Fico again argues battlefield defeat of Russia is unrealistic. Sanctions Politics: The EU delisted Russian oligarchs Usmanov and Fridman, sparking anger in Ukraine and friction among member states. Local Impact: A ballistic strike reportedly destroyed the main TK-Domashniy Tekstyl factory and logistics hub in Kyiv, with equipment damage but no employee injuries reported.

Retail & Food Industry: Tesco is reportedly in talks to sell its Central European operations (including Slovakia) to Lidl’s owner Schwarz Group, with bidders also including Ahold Delhaize and Biedronka—another sign of the UK grocer retreating from overseas. Automotive Trade: EU-linked analysis warns the bloc could lose about €24bn if “Made in Europe” rules under the Industrial Accelerator Act exclude UK production, risking demand for UK-built cars and EU components. Energy & Transport Costs (Slovakia): Slovakia will cap petrol and diesel retail margins at 10 euro cents per litre from Oct. 1, and cut second-class train fares by 50% as fuel prices stay under pressure. Data Centres & Power (Slovakia): Slovakia pitches Bratislava and the Málinec pumped-storage area for “AI factories,” but critics question whether energy and water plans add up under tighter EU rules. Construction & Materials: Taiwanese TCC Group plans to buy Ukraine’s Ivano-Frankivskcement and related firms for up to €750m, aiming to expand low-carbon cement capacity in Eastern Europe. Automotive Manufacturing (Slovakia): Volkswagen’s Martin plant is set to shift from passenger-car parts to lorry components, with MAN potentially taking over operations—raising job and wage uncertainty. EU Policy: EU diplomats agreed to keep sanctions on Russia for longer after a dispute over delisting oligarchs Usmanov and Fridman, while Latvia criticised the “normalising” signal.

Fuel & Transport Policy: Slovakia will cap petrol and diesel retail margins at 10 euro cents per litre from Oct. 1, and cut second-class train fares by 50% from the same date, aiming to curb consumer pain from higher oil prices. EU Energy & Industry Pressure: The ECB says Chinese industrial expansion is increasingly overlapping with European manufacturing in machinery and transport equipment, raising competitive pressure for tech-heavy sectors. Sanctions Politics: The EU agreed to extend Russia sanctions for 36 months while delisting Alisher Usmanov and Mikhail Fridman, a move that drew sharp criticism from Ukraine and warnings about “sanctions fatigue.” Regional Security & Energy: Ukraine’s “Carpathian Eight” format is roiling diplomacy as Hungary refuses to join and disputes a proposed MOL–Naftogaz fuel-storage plan near the border. Automotive Trade Watch: EU “Made in Europe” rules tied to the Industrial Accelerator Act could disadvantage UK-built vehicles, with analysis valuing €24bn in EU supply-chain activity linked to UK production. Slovakia’s Compliance: Slovakia’s Equal Pay Act transposes the EU Pay Transparency Directive, with new reporting deadlines and expanded same-sex equal-pay protections. Business Links: A CEIAS report highlights underused potential for India–V4 cooperation, especially for Slovakia and Hungary, across defence, logistics and trade. EV Market Signal: Electric cars hit a record 17.3% share of EU new registrations in 2025, while Slovakia remains low at 4.7%.

EU Sanctions Update: The EU Council extended Russia-linked sanctions for 36 months to 22 September 2029, but the deal came with a major trade-off: Alisher Usmanov and Mikhail Fridman were delisted, after weeks of deadlock involving Latvia, France and Slovakia. Energy Costs & Policy: Slovak PM Robert Fico hit the EU over soaring fuel prices, calling for an emergency summit as Eurostat reported EU fuel and lubricant prices for personal transport up 23.8% year-on-year in August. Water Infrastructure Funding Gap: Slovakia’s Supreme Audit Office warns the water sector needs €8–10bn to recover from years of underinvestment, citing high wear-and-tear and huge drinking-water losses. Manufacturing Milestone: Volvo’s new electric plant near Košice hit 1,000 employees and starts testing ahead of full series production in 2027. Nuclear Progress: Mochovce 4 began power generation, moving through commissioning stages toward a full 100% power test. Regional Security & Industry: The Carpathian Eight initiative faces political friction as Hungary rejects the format, while defense cooperation discussions continue across Central Europe. Wine Industry Reshuffle: Henkell Freixenet will move production of its Hubert brand from Slovakia to Czechia, affecting about 60 jobs.

Energy & Industry Watch: Mochovce 4 in Slovakia has started power generation (energy launch), moving through staged output increases toward a final 144-hour run at full power—another step for national electricity security. EU Sanctions & Business Risk: Latvia blocked an EU compromise to renew Russia-linked sanctions while delisting oligarchs Alisher Usmanov and Mikhail Fridman, keeping the 27-country unanimous process in limbo and raising uncertainty for firms tied to the sanctions regime. Chemicals Restructuring: Evonik says it’s in a structural industry crisis and will cut 3,200 jobs worldwide (about 2,150 in Germany) under its Tailor Made program, reshaping operations and shifting investment toward healthcare and biotech, including projects in Canada and Slovakia. Packaging Compliance Beyond Checklists: A PPWR-focused analysis argues companies shouldn’t stop at “compliant” paperwork, but use the regulation push to improve traceability, reduce food waste, and rethink packaging strategy. Trade & Supply Chains: The EU is nearing a free trade deal with the Philippines, aiming to liberalise 94% of tariff lines and expand market access for EU machinery, transport equipment and food products. Regional Security & Logistics: Ukraine’s Carpathian Eight initiative is sparking friction with Hungary, with disputes also touching energy and cross-border logistics plans.

EU Sanctions Deadlock: EU diplomats are scrambling to renew Russia-linked sanctions before the Sept. 22 deadline, with France and Slovakia pushing to delist oligarchs Alisher Usmanov and Mikhail Fridman while keeping measures against about 3,000 others—an approach Ukraine calls unacceptable. Regional Security & Energy: Slovakia is part of the new “Carpathian Eight” format, aimed at regional security, energy resilience and economic cooperation; Ukraine also says it’s setting up a railway coalition after Russia’s attacks on locomotives. Slovak Mobility Shift: Slovakia’s car fleet has doubled to 3.8 million over two decades, while electric vehicles and public transport use are rising, according to the Statistical Office. V4–India Business Talks: Foreign minister Juraj Blanar says V4 and India agreed to meet regularly and plan an annual business forum, with EU-India trade talks also on the agenda. Industrial Pressure at Home: More firms are leaving Slovakia, including Bosch layoffs in Bernolákovo and Hubert closing its Sereď plant, citing costs and capacity issues. Energy Politics Watch: The EU’s energy squeeze is boosting far-right momentum ahead of major elections, with Germany’s AfD gains highlighted.

Sanctions Deadlock: EU diplomats are stuck on renewing Russia-linked sanctions covering nearly 3,000 people and entities, with France and Slovakia pushing to delist oligarch Alisher Usmanov (and Mikhail Fridman), while a one-week extension is being used to avoid an expiry. Defense Supply Chain: A Kyiv Independent investigation says a Swiss-linked firm helped Russian arms plants keep Western high-precision machinery running via spare-parts sourcing and customs schemes, raising new pressure on sanctions enforcement. Energy Security Deal: Poland’s Orlen will supply Ukraine’s Naftogaz with three LNG cargoes in early 2027 and Ukrnafta with fuel worth up to $500m, as attacks keep hitting Ukraine’s refining capacity. Cross-border Fuel Storage: MOL and Naftogaz signed a memorandum to build oil-product storage facilities in Hungary near the border to keep reserves outside the strike zone. Renewables Watch: Eurostat reports renewables supplied 54.1% of EU electricity in Q2 2026, led by solar (41.6%) and wind (27.7%), with Slovakia at just 19.8%. Industrial Tech & Risk: Intermap expanded its flood-risk and property-valuation insurance analytics with a three-year Fairfax/Colonnade subscription. Weather Risk for Solar: Solargis warns extreme summer conditions in major solar markets are making generation forecasts harder, pushing demand for finer weather data.

US Tariff Shock for Slovakia and Region: The US Congress backed the Lindsey O Graham Sanctioning Russia and Iran Act, giving President Trump power to impose up to 100% tariffs on the biggest buyers of Russian oil and gas—naming China, India, Slovakia, Hungary and Azerbaijan—raising fresh uncertainty for Slovakia’s energy-linked trade. Slovak Politics and NATO Debate: Prime Minister Robert Fico hit back at Czech President Petr Pavel, saying he “prefers peace” and will not back any “military adventure” that could pull Slovakia into a NATO-Russia confrontation. Defense Industry Contract: The US Army awarded Skyeton Inc. a $10.64m contract for Raybird reconnaissance drone hardware and services, with work running to Dec 15, 2026—another sign of demand for combat-proven unmanned systems. Carpathian Eight Push for Investment: Ukraine’s Carpathian Eight summit in Bukovel wrapped with a focus on security, energy and logistics, including a €40bn portfolio of 95 projects and plans for cross-border energy and industrial cooperation. Energy Supply Resilience: MOL and Naftogaz agreed to build oil product storage facilities in Hungary to help Ukraine keep fuel reserves outside strike zones. EU Power Mix Update: Eurostat reports renewables supplied 54.1% of EU electricity in Q2 2026, but Slovakia’s share was among the lowest at 19.8%.

Carpathian Eight Deal-Making: Ukraine hosted the inaugural “Carpathian Eight” summit (C8) with the EU and partners including Slovakia, aiming at security, energy, logistics and cross-border business; leaders backed a €40bn portfolio of 95 projects and said more than 50 agreements worth over €1bn were prepared. Energy & Industry Push: At the Carpathian Economic Forum, Ukraine’s PM highlighted projects in energy (solar, wind), industrial production, transport/logistics and agri-food, while C8 talks also floated an energy cluster concept and cross-border investment platforms. Slovakia in the Nuclear Spotlight: Slovakia secured a seat on the IAEA Board of Governors for 2026–2028, joining other elected countries including Sweden and Greece. EU Power Mix Update: Eurostat reported renewables supplied 54.1% of EU electricity in Q2 2026, with solar leading; Slovakia’s renewable share was among the lowest at 19.8%. Construction Watch: Eurostat said EU construction output fell 0.3% in July, with Slovakia up 1.9% month-on-month. US Tariff Pressure on Russian Oil Buyers: Trump signed the Lindsey O. Graham sanctions bill giving tariff powers up to 100% on countries buying Russian oil/gas—India and China are named, and Slovakia is also flagged among top importers. Regional Security Tensions: Poland’s PM warned Russia may stage “accidental” drone/rocket hybrid attacks to weaken NATO support for Ukraine.

Carpathian Eight Summit: Ukrainian President Volodymyr Zelensky hosted leaders from seven Carpathian countries plus the EU to deepen regional trade, security, energy and logistics ties after overnight Russian strikes; the bloc includes Ukraine, Romania, Serbia, Poland, Slovakia, the Czech Republic, Austria and Hungary, with agreements framed as a new EU-level cooperation engine. Energy & Industry Pipeline: At the Carpathian Economic Forum, Ukraine’s PM Serhii Koretskyi said businesses are pitching projects in energy, industrial production, transport/logistics and agri-food, with a portfolio of €40bn and 50+ deals worth over €1bn aimed at scaling solar/wind, storage and interconnectors. EU Sanctions Deadlock: Slovakia is pushing to delist Russian-linked oligarchs Mikhail Fridman and Alisher Usmanov, but EU-wide renewal talks risk delays as France backs a compromise path. US Tariff Shock for Energy Buyers: Trump signed a Russia sanctions bill giving sweeping power for up to 100% tariffs on countries buying Russian oil/gas, putting major buyers including Slovakia under potential pressure. Renewables Snapshot: Eurostat data shows 54.1% of EU electricity came from renewables in Q2 2026, while Slovakia sits at 19.8%, highlighting a gap for the country’s power transition. Defense Tech Contract: The US Army awarded $10.64m for Ukrainian Raybird reconnaissance drones, underscoring continued drone-driven battlefield demand with production dispersed after attacks.

Renewables Watch: Eurostat says renewables generated 54.1% of EU electricity in Q2 2026 (solar 41.6%, wind 27.7%, hydro 22.6%), but Slovakia sits at just 19.8%, among the lowest in the bloc. Carpathian 8 Deal-Making: Ukraine’s Zelensky launched the “Carpathian Eight” with Romania, Serbia, Poland, Slovakia, Czechia, Austria, Hungary and the EU, aiming at security, energy and logistics; over 50 agreements worth €1bn were readied, with energy (solar, wind, storage, interconnectors) taking the biggest share. Slovakia Energy/Industry Politics: PM Robert Fico said Slovakia won’t be drawn into war “because of some Article 5” of NATO, while the EU-wide debate on energy costs and security continues. US Sanctions & Tariffs: Trump signed a Russia sanctions bill giving tariff powers up to 100% on countries buying Russian oil and gas, putting major buyers like India and China under pressure. Local Environment Decision: Slovakia definitively cancelled a planned waste incinerator near Dudince after an appeal, arguing such plants shouldn’t be in spa towns. Health/Innovation: FDA approved IntraBio’s AQNEURSA (levacetylleucine) for ataxia in ataxia-telangiectasia, with clinical sites including Slovakia.

Carpathian Eight Launch: Ukraine kicked off the “Carpathian Eight” (C8) summit in Bukovel, bringing together Ukraine, Romania, Serbia, Poland, Slovakia, the Czech Republic, Austria and Hungary plus the EU, with a focus on energy resilience, transport and logistics, cross-border trade and regional security. Zelenskyy says the bloc is presenting a single investment offer: €40bn across 95 projects, with 50 deals worth over €1bn ready for signing, and energy taking about half the portfolio. Slovakia Waste-to-Energy Setback: Environment Minister Tomas Taraba definitively cancelled plans for a waste incinerator near Dudince after an appeal, arguing such facilities should be placed in industrial areas, not spa towns. EU Renewables Snapshot: Eurostat reports renewables generated 54.1% of EU electricity in Q2 2026; Slovakia sits at 19.8%, among the lowest in the bloc. IAEA Role for Slovakia: Slovakia won a seat on the IAEA Board of Governors for 2026–2028, highlighting its nuclear safety and safeguards expertise. Construction Output Mixed: Eurostat says construction production was stable in the euro area but down 0.3% across the EU in July.

Carpathian Eight Summit: Ukrainian President Volodymyr Zelensky launched the “Carpathian Eight” (C8) bloc, bringing together Ukraine, Romania, Serbia, Poland, Slovakia, the Czech Republic, Austria and Hungary (with EU involvement) to push security, energy resilience, transport/logistics, industrial cooperation and cross-border business after renewed Russian strikes. Slovakia’s NATO stance: Prime Minister Robert Fico said Slovakia should not be pulled into war under NATO Article 5, questioning who would be fought and why, and he later canceled a Ukraine trip due to health. Sanctions and energy pressure: Poland’s Donald Tusk warned Russia may stage hybrid “accidents” to weaken NATO resolve, while EU talks continue on windfall taxes for energy firms as oil prices jump. EU budget fight: Germany and Spain clashed over the size of the next €2 trillion EU budget, adding pressure to an already tense energy-and-inflation backdrop. Industrial signals: Slovakia-linked business items included a fire at a Slovak ammunition facility during reconstruction and Evonik’s biotech expansion in Slovakia; plus regional infrastructure and equipment deals like ANDRITZ hydropower modernization in Romania.

Industrial Fire & Defence Supply Chain: A fire broke out at the CSG-linked ZVS Holding large-calibre ammunition plant in Snina during roof reconstruction; operations were halted but no injuries were reported and deliveries were not expected to be disrupted. Steel Decarbonisation Push: Nippon Steel will modernize the Košice steelworks, with signed documents for major decarbonisation funding aimed at boosting competitiveness and cutting emissions. Energy & Sanctions Shock: The US House passed a Russia-energy sanctions bill that could enable up to 100% tariffs on major Russian oil and gas buyers, with Slovakia named among potential targets—raising new risks for regional energy costs and supply planning. EU Policy Tension: Slovakia’s FM Juraj Blanár criticized EU Commission President von der Leyen for focusing on military support and sanctions without peace proposals, and warned against a full Russian energy phase-out that could create new dependencies. Water Infrastructure Decision: PM Robert Fico said experts will decide whether the Tichy Potok drinking-water reservoir project in eastern Slovakia should go ahead, with compensation or alternatives for affected residents. Cyber & Governance: ESET reported the China-aligned FamousSparrow group deploying a new backdoor, SparroWocky, targeting multiple Latin American governments. Local Inflation Watch: Slovakia’s HICP inflation eased to a 23-month low in August, with transport and food inflation cooling.