AGP Executive Report

Energy & Industry Policy: The EU is signalling a shift in how it handles Russia sanctions, with Ursula von der Leyen urging capitals to focus on enforcing existing measures and closing loopholes rather than piling on new restrictions—after delays tied to LNG shipping and renewed disputes involving Slovakia and France. Trade & Manufacturing Risk: In the US, the House has advanced the Lindsey O. Graham Sanctioning Russia and Iran Act, setting up a final vote that could let President Trump impose up to 100% tariffs on countries buying Russian oil and gas; a House amendment explicitly lists India and also names Slovakia among potential tariff-eligible buyers. Local Business & Supply Chains: InoBat and Palmer Energy Technology signed a European battery energy storage partnership, with reciprocal supply planned for 2026 and a two-way structure from 2027 using InoBat’s Slovak manufacturing base, plus Brill Power control software integration. Bilateral Trade: Slovakia and Vietnam moved forward on economic cooperation at the third intergovernmental committee meeting in Bratislava, targeting deeper trade and industry links.

Biotech & Pharma Investment: Evonik broke ground on an ~€80m biotechnology expansion at its Fermas site in Slovenská Ľupča, adding downstream fermentation capacity for complex pharmaceutical intermediates, targeting completion in early 2028 and creating about 50 jobs, with the site running on 100% green electricity. Steel Decarbonisation: Slovakia signed €743m contracts with U.S. Steel-Nippon Steel Slovakia for an electric arc furnace and an air separation facility, aiming to cut about 2.96m tonnes of CO2e annually, funded largely via the Modernisation Fund. EU Sanctions Politics: France joined Slovakia in pushing to remove Russian oligarch Alisher Usmanov from EU sanctions, delaying a full renewal and forcing a short one-week extension while talks continue. Energy & Jobs Watch: Eurostat data show Slovakia’s job vacancy rate at 0.9% in Q2 2026, among the lowest in the EU, while euro area vacancies eased to 2.1%. Local Infrastructure & Governance: A new Danube pontoon appeared near Eurovea in Bratislava without prior notice, raising concerns about uncoordinated passenger movement and damage to surfaces.

Biotech Investment in Slovakia: Evonik has broken ground on an ~€80m biotechnology expansion at its Fermas site in Slovenská Ľupča, adding downstream fermentation tech, boosting capacity for pharma intermediates, and creating about 50 new jobs, with completion expected in early 2028. EU Sanctions Deadlock: EU ambassadors extended Russia-related sanctions for just seven days until 22 September after failing to agree on a longer renewal, with France joining Slovakia in pushing to delist Russian-Uzbek billionaire Alisher Usmanov—raising uncertainty over the bloc’s unified stance. Energy Security Watch: Europe faces a tighter winter outlook as gas storage sits well below the usual 90% target, with LNG disruptions linked to tensions around the Strait of Hormuz keeping prices elevated. US Sanctions & Tariffs Pressure: US lawmakers advanced amendments to a Russia-Iran sanctions bill that could name India (and others) as eligible for up to 100% duties on Russian oil buyers, while another proposal would remove the tariff mechanism—timing is tight before the House recess. Industrial Mobility Tech: MAN unveiled the next-gen eTGX electric long-haul truck, targeting longer range and faster charging to address barriers to electric freight adoption.

Biotech Investment in Slovakia: Evonik broke ground on an ~EUR 80m expansion at its Fermas site in Slovenská Ľupča, adding downstream fermentation capacity, ~50 jobs, and targeting completion in early 2028. Hydropower Modernisation: ANDRITZ and VUJE won a contract to modernise the 720MW Gabčíkovo plant, upgrading electromechanical equipment across all eight Kaplan units to boost efficiency and extend service life by at least 30 years. Electric Truck Push: MAN unveiled the next-gen eTGX at IAA Transportation 2026 with up to 720 km range and faster charging designed to tackle long-haul adoption barriers. AI Data Centres Debate: Slovakia’s government is floating data centres, citing water and power stability, while critics warn about drought pressure, energy demand, and readiness for cybersecurity and governance. EU Russia Sanctions Deadlock: EU envoys extended Russia-related sanctions listings by seven days to Sept. 22 as France and Slovakia clash over delisting Alisher Usmanov (and also Mikhail Fridman). Energy Prices Pressure: ECB policymaker Peter Kazimir flagged rising gas and electricity costs as a key inflation risk, while Slovakia’s PM warned fuel prices remain a live political issue. Aquaculture Growth: A Slovak push to increase domestic fish supply highlights entrepreneurs expanding salmonid production to bring more locally farmed fish to consumers.

EU Sanctions Deadlock: EU ambassadors in Brussels are back at the negotiating table as individual Russia sanctions expire on Sept. 15, with Slovakia pushing to delist Alisher Usmanov and Mikhail Fridman and France now backing Usmanov—raising frustration among other member states and threatening renewal talks. Energy & Inflation Watch: ECB policymaker Peter Kazimir (Slovakia’s central bank chief) warns euro-zone inflation could run higher, with attention shifting from oil to surging gas and electricity prices after low summer storage. Slovak Aquaculture Push: A Slovak fish farmer is trying to grow freshwater and salmonid supply for local plates, aiming to cut reliance on imports in a small aquaculture sector. Battery Industry Move: Clarios, Altris and InoBat report progress in sodium-ion validation, extending cold-cranking capability to as low as -40°C for future low-voltage, high-power use. Tech/Finance Restructuring: Bitcoin Suisse plans to cut up to 60 Swiss jobs and close its Copenhagen development site, with software and back-office work shifting toward Bratislava. Industrial Power Upgrade: ANDRITZ is set to modernize Slovakia’s Gabčíkovo hydroelectric plant, targeting efficiency gains in existing generation assets.

EU Sanctions Deadlock: EU ambassadors failed again to renew Russia-linked individual sanctions before Sept. 15, with Slovakia and now France pushing to delist Alisher Usmanov (and Slovakia also Mikhail Fridman), triggering “huge frustration” among other member states amid rising hybrid threats. Auto Industry Shockwaves: Volkswagen approved “Future Plan 2030” with another 50,000 job cuts and a major reshuffle of European production, as it targets higher margins and cuts model complexity while China pressure keeps growing. Slovakia in the Spotlight: Slovakia backs removing Usmanov from the EU list, while Zelensky calls any easing of oligarch sanctions “immoral,” keeping pressure on Bratislava’s stance. Aviation & Tourism Links: Smartwings and TUI extended their flight partnership for three more years, with winter routes adding Egypt (Hurghada, Marsa Alam). Tech & Jobs: Bitcoin Suisse plans to cut up to 60 Swiss roles and shift back-office/software work to Bratislava and Vietnam as it pivots to wealth management. Energy & Industry: ANDRITZ is set to modernize Slovakia’s Gabčíkovo hydroelectric plant, reinforcing upgrades in local power infrastructure.

EU Sanctions Deadlock: France has joined Slovakia in pushing to remove Russian-Uzbek oligarch Alisher Usmanov from the EU sanctions list, a move that’s reportedly sparked “huge frustration” among other member states ahead of the Sept. 15 renewal deadline; V4 Energy Push: Visegrád Four leaders met in Bratislava to coordinate EU budget and competitiveness positions, with a clear line on cutting energy-price pressure and resisting climate policies that raise costs; Auto Industry Reshuffle: Volkswagen approved “Future Plan 2030,” adding another 50,000 job cuts and reshaping European production as it faces weak demand and China-driven competition—an issue that hits Central Europe’s supply chain; Crypto Jobs Shift to Slovakia: Bitcoin Suisse plans to cut up to 60 Swiss roles and move back-office and software work to Bratislava (and Vietnam), with consultations running until Sept. 20; Housing Supply Squeeze: Slovakia’s housing construction has slowed sharply—new starts down 40% and completions down over a third—fueling tighter supply and higher prices; Industrial Security Concern: A suspected arson attack on a drone factory in Slovakia is linked to recruitment via Telegram, raising fresh questions about hybrid threats.

EU Sanctions Deadlock: France has joined Slovakia in pushing to delist Russian-Uzbek billionaire Alisher Usmanov, adding fresh friction ahead of the Sept. 15 deadline to extend EU sanctions on more than 3,000 entities and individuals tied to Russia’s war effort. V4 Energy Push: Visegrád Four leaders in Bratislava agreed to coordinate against EU moves that could raise energy prices, with Poland’s Donald Tusk warning they will block climate policies that hurt competitiveness. Auto Industry Reshuffle: Volkswagen approved its “Future Plan 2030,” cutting another 50,000 jobs and reshaping European production as it faces weak demand and Chinese competition—another signal for Central Europe’s supply chain. Diesel Relief Plan: Hungary will compensate diesel owners (up to 150 hp) with 5,000 forints per month from September through December, aiming to cushion fuel-price pressure on households and farmers. Slovakia Water & Irrigation Funding: Slovakia is allocating €34.8m for irrigation expansion, modernization and water-retention measures, with calls opening Oct. 12. Industrial Tech Update: Uniksystem released Low-Code BPM/AI “Release 7 Touring,” aiming to speed up getting business processes into production. Security & Industry Risk: A Latvian suspect in a reported arson attempt on a drone factory in Slovakia told investigators he was recruited via Telegram, raising concerns for industrial security. Bitcoin Suisse Reorg: Bitcoin Suisse plans to cut up to 60 Swiss jobs and shift back-office and software work to Bratislava and Vietnam as it pivots to wealth management.

EU Sanctions Deadlock: France has joined Slovakia in pushing to delist Russian-Uzbek billionaire Alisher Usmanov, but the move is frustrating other member states and could complicate the Sept. 15 decision on extending Russia sanctions. Diesel Relief for Households: Hungary plans automatic compensation for diesel drivers (up to 150 hp) with 5,000 forints per month from September through December, aiming to blunt higher fuel prices for nearly one million vehicles. V4 Energy Fight: Visegrád leaders are coordinating to block EU energy and climate policies that raise costs, with electricity prices and competitiveness at the center of their push ahead of EU budget talks. Slovakia’s Water for Farming: Slovakia is allocating €34.8m for irrigation expansion, modernization, and water-retention measures, with calls opening Oct. 12. Industrial Security Case: A Latvian suspect in a reported arson attempt on a drone factory in Slovakia says he was recruited via Telegram and given last-minute coordinates for the Skyeton site near Prešov. Tech & Logistics Investment: Scanfil is expanding its Mysłowice electronics system-integration plant in Poland by 20% to meet new customer demand, supporting Central European supply chains. Cross-border Education Links: Slovakia and Kyrgyzstan signed education cooperation steps, including STEM and vocational training exchanges tied to Slovakia’s industrial labor needs. Aviation Supply Chain: Embraer unveiled Uzbekistan’s first C-390 Millennium transport aircraft, adding another operator to the growing Central European and wider defense aviation ecosystem. EU Culture Policy Update: The European Commission is renewing the Capitals of Culture framework beyond 2033, building on the 40-year history that includes Trenčín and Oulu as 2026 holders.

EU Sanctions Deadlock: EU ambassadors failed to extend Western sanctions on Russia after France joined Slovakia in pushing to delist Alisher Usmanov (and also Mikhail Fridman), with talks set to resume as the current list expires Sept. 15. V4 Energy Standoff: Visegrad leaders in Bratislava vowed to block EU climate and energy policies that raise power prices, with Poland’s Donald Tusk warning competitiveness is already under pressure. Slovakia Housing Slowdown: New home starts fell 40% year-on-year in Q2 and completions dropped by over a third, the lowest since 2000, as permitting delays and high rates squeeze supply. Irrigation Push: Slovakia allocated €34.8m for irrigation expansion and water-retention measures, with calls opening Oct. 12 for farm and off-farm infrastructure upgrades. Aviation Competition Watch: The Office for the Protection of Competition approved Pegasus’s acquisition of Czech Airlines and Smartwings, requiring slot transfers on the Prague–Antalya route. Bitcoin Suisse Restructuring: Bitcoin Suisse plans to cut up to 60 Swiss jobs and shift back-office and software work to hubs in Bratislava and Vietnam, closing its Copenhagen development site. EU Streaming Regulation Pressure: A coalition of screen groups including Slovakia urged governments to update rules so streaming services fund local productions. Diplomacy & Industry Links: Slovakia plans Karabakh projects including a socially oriented Forest Park in Aghdam and wants cooperation in agriculture via Slovak companies.

Energy Security & EU Policy: V4 leaders meeting in Bratislava agreed to tighten coordination ahead of EU summits, with energy costs and competitiveness at the top of the agenda; Poland’s Donald Tusk warned the group will block EU measures that raise energy prices, while Slovakia’s Robert Fico pushed for lower electricity costs and discussed ETS and fuel pricing. Construction & Housing: Slovakia’s housing market is cooling fast—new starts fell 40% year-on-year in Q2 and completed homes dropped by more than a third, with analysts blaming permitting delays, high interest rates and uncertainty. Water & Agriculture: Slovakia is allocating €34.8m to expand and modernise irrigation and water-retention systems, with four funding calls opening Oct. 12. Industrial Growth: Scanfil plans a 20% expansion of its Mysłowice system-integration and logistics plant in Poland, adding 6,000 sq m and targeting operations in Q1 2028. Defence Procurement: Slovakia is moving ahead with contracts for additional F-16D Block 70 jets, aimed at meeting NATO needs and training at home. Education & Skills: Kyrgyzstan and Slovakia signed an education cooperation memorandum, highlighting STEM and technical-vocational training as about 4,000 Kyrgyz citizens work in Slovakia. Aviation Deal: Embraer unveiled Uzbekistan’s first C-390 Millennium transport aircraft, making the country the first Central Asian operator of the jet. Security Incident: A Latvian suspect in a Slovak drone-factory arson attempt told investigators he was recruited via Telegram, with the company alleging possible Russian involvement.

V4 EU Push: Slovakia’s PM Robert Fico met Visegrad Four leaders and Ireland’s PM Micheal Martin in Bratislava, agreeing to coordinate common positions for the EU’s next long-term budget—keeping CAP support, cutting regional gaps, and tackling high defence costs on the eastern flank. Energy Prices & Industry: The V4 also zeroed in on electricity affordability as a competitiveness issue, with Fico calling for proposals to bring prices down (including ETS and gas-electricity pricing links) and Poland’s Donald Tusk warning against EU moves that would raise energy costs. Procurement Rules: The European Commission proposed a new public procurement act that would let buyers reject bids from suppliers in countries not covered by EU procurement agreements—widely seen as targeting China—sparking criticism that it’s discriminatory and protectionist. Air Force Upgrade: Slovakia approved the plan to buy four more US F-16 Block 70 jets, while opposition parties demanded clearer justification and cost transparency. Water Crisis Response: After record heat and drought damaged agriculture, Slovakia is setting up a National Commission for Water and Drought to plan irrigation and reservoirs. Rail Modernisation: Poland’s PKP Intercity ordered 32 more Griffin 200 electric locomotives from Newag, boosting its fleet for domestic and cross-border routes including Slovakia.

Slovak Defence Procurement: Slovakia approved the purchase of four more US F-16 fighter jets for about €390 million (excluding VAT and customs), expanding the fleet beyond the current 14 and adding new training, logistics and maintenance capacity. Industrial Output Watch: Slovakia’s industrial production rose 2.4% year-on-year in July, led by motor vehicles (+9.2%) and chemicals (+15.9%), while computer products fell sharply (-41.0%). Energy & Grid Context: A new charted overview shows Europe still relies heavily on fossil fuels for power generation, with big differences by country and grid strain from recent heat and supply disruptions. Digital Services: The government says it has improved e-government services for nine key life events under the Recovery and Resilience Plan, with final EU confirmation steps still to come. EU Trade Politics: Even Trump-friendly EU states are backing a Canada-focused push in a trade dispute, with Slovakia’s Robert Fico named among supporters. Innovation Cooperation: China and CEEC countries, including Slovakia, unveiled an innovation cooperation vision through 2030 covering AI, biotech and green energy. Aerospace M&A: GE Aerospace agreed to buy Consolidated Precision Products for $11.75bn, aiming to secure precision casting capacity for jet engine parts.

Bratislava Security: Slovakia approved the purchase of four more US F-16 fighter jets for about €390m (ex VAT/customs), expanding the fleet from 14 to 18 and adding training plus infrastructure for long-term operations. Energy & Industry: ANDRITZ, with Slovak partner VUJE, won a contract to modernise the Gabčíkovo hydropower plant, aiming to renew electromechanical equipment and extend service life by at least 30 years. Manufacturing Pulse: Slovakia’s industrial output rose 2.4% year-on-year in July, led by motor vehicles (+9.2%) and chemicals (+15.9%), while computer products fell sharply (-41%). Digital Services: The government says nine life-event e-government services under the Recovery and Resilience Plan are now improved, with EC confirmation steps still due. EU Trade Politics: Even Trump-friendly EU states back a Canada-focused EU outreach as Washington blocks Canadian goods, with Slovakia’s Robert Fico named among supporters. Cross-border Tech Cooperation: Slovakia’s economy ministry co-hosts a China-CEEC innovation cooperation push through 2030, covering AI, robotics, biotech and green energy. Energy Outlook: EIA expects record US electricity generation in 2026–27, driven by manufacturing and data centres.

Slovakia’s Defence Upgrade: The government approved buying four more U.S. F-16 fighter jets for about €390m (excluding VAT and duties), expanding a fleet of 14 already purchased and adding training plus long-term logistics and maintenance support. Hydropower Modernisation: ANDRITZ, with Slovak partner VUJE, won a contract to modernise the Gabcíkovo hydroelectric plant, renewing electromechanical equipment to boost efficiency and extend service life by at least 30 years. EU Procurement Fight: A new EU public purchasing plan would let authorities favour European suppliers in state contracts, reopening the bloc’s internal dispute over “European preference” and how much discretion governments should keep. Bratislava–Vienna Rail Disruption: ZSSK warns of five days of service interruptions from 14–18 September, with some REX trains replaced by buses and earlier departures, while an alternative via Marchegg stays hourly. Slovakia–Poland Defence Industry: A letter of intent under the EU SAFE instrument targets ammunition production and Poland’s counter-drone SAN programme, with Slovakia also supplying radars for NATO’s Eastern Sentry. Automotive Portfolio Watch: Volkswagen is considering selling Ducati as part of a broader portfolio review, a move that could reshape industrial focus and investment priorities. Energy Security Context: Coverage also flags EU sanctions politics and a Slovak veto risk, with new restrictive measures tied up in member-state disagreement.

Hydropower Upgrade: ANDRITZ, with Slovak partner VUJE, won a contract to modernise Slovakia’s Gabcíkovo hydroelectric plant, renewing electromechanical equipment at 720 MW to boost efficiency and extend service life by at least 30 years. Rail Disruption: ZSSK warns of five days of Bratislava–Vienna service changes (14–18 Sept), with some REX trains replaced by buses and earlier departures, while hourly routes via Marchegg stay running. Defence Industry Deal: Slovakia and Poland signed a SAFE-backed letter of intent to deepen defence-industry cooperation, focusing on ammunition production and Poland’s counter-drone SAN programme. Aerospace Supply Chain: GE Aerospace agreed to buy jet-engine casting specialist CPP for $11.75B, aiming to ease a growing global logjam in precision superalloy airfoil production. EU Sanctions Politics: EU-wide settlement-import restrictions face delays as countries pursue national rules after a Slovak veto blocks broader action. Manufacturing & Tech: Visegrad Four leaders called for closer integration of industry, energy and AI to strengthen regional competitiveness, stressing secure energy and skills.