AGP Executive Report

Energy & Industry Policy: Ten EU countries, including Slovakia, are pushing the European Commission to rethink ETS2 carbon pricing on transport fuels and heating, warning it could add costs for households amid economic pressure. US–Russia Energy Pressure: A revised US Senate bill would allow up to 100% tariffs on the top Russian oil buyers—China, India, Slovakia, Hungary and Azerbaijan—while exempting some gas importers; the move is already sparking political and trade concerns. Slovakia Inflation Watch: Slovak inflation eased to 3.5% y/y in June as fuel and food prices fell, with housing and energy still the biggest driver. Geothermal Pushback: A geothermal policy interview highlights non-technical barriers holding back Central and Eastern Europe, including favouritism toward incumbent gas CHP and biomass. Local Industry & Waste: Opposition parties criticised the Environment Ministry’s approval of Slovnaft’s waste-to-energy centre (CEZO), arguing Bratislava doesn’t need another plant and that imported waste could be burned. Jobs & Wages: May data show real wages rising in most sectors, with industry up 3% y/y and employment growth strongest in construction. Azerbaijan–Slovakia Business: Slovak firms are seeking long-term partnerships in Azerbaijan, with talks covering energy, mining, engineering, transport and reconstruction projects like Bash Garvand.

US–Russia Energy Sanctions: The US Senate unveiled a revised Russia sanctions bill that cuts the maximum proposed tariff threat on major Russian energy buyers from 500% to 100%, targeting the five biggest oil importers—China, India, Slovakia, Hungary and Azerbaijan—while keeping broader sanctions on Russia’s energy, finance and defence sectors. EU Carbon Costs: Ten EU states including Slovakia urged the European Commission to rethink the planned ETS2 carbon price for heating and transport fuels, warning against new climate taxes amid economic pressure. Slovakia–Azerbaijan Trade Push: Slovak firms are seeking long-term partnerships in Azerbaijan, with officials highlighting energy cooperation, reconstruction work and a planned Baku–Bratislava direct flight. Energy Contract Talks: Slovakia is negotiating favourable long-term gas supply contracts in Azerbaijan ahead of the October 2027 stop of Russian gas imports. Industrial Policy Clash: Opposition parties attacked the Environment Ministry’s approval of Slovnaft’s waste-to-energy centre, arguing Bratislava doesn’t need a second plant and that process concerns were ignored. Labour Market Snapshot: Real wages rose in May across most monitored sectors, with industry up 3% year-on-year.

US–Russia Energy Sanctions: A revised US Senate bill cuts the maximum tariff threat on countries buying Russian oil from 500% to 100%, targeting the top five buyers: China, India, Slovakia, Hungary and Azerbaijan. EU Carbon Policy: Ten EU states, including Slovakia, urge the Commission to rethink a new carbon price on fuel (ETS2) and adjust the wider emissions trading overhaul. Digital Payments: The ECB selected 36 payment service providers for the digital euro pilot, due to start in 2H 2027. Waste Compliance Pressure: The European Commission opened formal steps against 14 member states over missed waste recycling targets and failures to transpose key packaging and waste rules. Slovakia–Azerbaijan Energy Talks: Slovakia is negotiating long-term gas supply contracts with Azerbaijan as it plans to stop importing Russian gas from October 2027. Bratislava Airport Results: M. R. Štefánik Airport posted its strongest financial performance in 17 years, returning to profit in 2025 with passenger growth. Oil Logistics Upgrade: Hungary’s parliament approved a treaty amendment enabling a new diesel/naphta interconnector linking MOL’s Danube refinery with Slovnaft near Bratislava.

Maritime Trade & Logistics: CMA CGM’s new 24,212-TEU containership CMA CGM NOTRE DAME has called at EUROGATE’s Hamburg terminal, highlighting a modern, low-carbon LNG-capable fleet route between Asia and Europe. Energy Security: Slovakia is pushing for long-term gas supply contracts with Azerbaijan as it plans to stop importing Russian gas from October 2027; talks include SOCAR meetings and a possible multi-year deal. Bilateral Industry & Infrastructure: During President Peter Pellegrini’s visit to Azerbaijan, Slovakia and Azerbaijan reviewed reconstruction progress in Bash Garvand (Aghdam) and laid the foundation stone for a Milan Rastislav Štefánik secondary school for 840 students. EU Policy & Sanctions: EU foreign ministers failed to approve the 21st Russia sanctions package, while Slovakia says the measures won’t harm its economic interests and stresses continued energy and humanitarian support for Ukraine. Industrial Decarbonisation & Waste: Bratislava’s Environment Ministry approved Slovnaft’s waste-to-energy plant environmental assessment, clearing the way for a 2029–2030 start to process up to 220,000 tons of waste annually. Cyber & Critical Systems: ESET warned of 11 old Microsoft-signed UEFI shims that could let attackers bypass Secure Boot, a risk for industrial IT and embedded systems. Digital Economy: The ECB selected 36 payment service providers for digital euro pilots starting in late 2027, aiming to test operations and user experience. Industrial Finance: The Modernisation Fund adds €150m for businesses’ energy-efficiency investments and expands the Obnov Dom Mini+ household scheme with higher grants and broader support. Trade & Industry Demand: Plzeňský Prazdroj reported weaker beer exports, with Slovakia among key markets seeing declines.

Energy & Industry: Russia’s crude output fell to a 2.5-year low in June as Ukraine hit oil infrastructure, pushing refining to the weakest in 21 years and triggering tighter diesel supply and export bans—while LNG production stayed intact and exports to Europe hit record levels. Slovakia–Azerbaijan Energy Push: President Peter Pellegrini thanked Azerbaijan for emergency gas support during the Ukraine transit crisis and said Slovakia wants joint projects covering energy, trade, investment, technology transfer, and even industrial participation in reconstruction; security cooperation is also expanding, with Slovakia set to act as NATO contact point in Baku. EU Cyber Sanctions (incl. Slovakia): The EU and UK rolled out their first joint cyber sanctions against Russia’s “cyber ecosystem,” targeting FSB Centre 16 and linking it to espionage and sabotage across Europe, including Slovakia, with France and Germany summoning Russian ambassadors. Manufacturing & Logistics: Leyard Europe says it produced and delivered a Munich airport LED video wall in three days thanks to its Prešov, Slovakia facility. Food & Circular Economy: Carrefour Romania and Bonapp expanded their food-waste “Surprise Bags” to four more cities, claiming thousands of kilograms of food saved; Bonapp also operates in Slovakia. Brewing Demand: Plzeňský Prazdroj reported weaker beer exports, with Slovakia among the softer markets. Aviation Business: Bratislava airport opened a 24-hour café in a major terminal space, as passenger numbers keep climbing.

EU Cyber Sanctions: The EU and UK announced their first joint cyber sanctions against Russia, targeting a wider “cyber ecosystem” tied to FSB Centre 16, accused of espionage and sabotage across at least nine countries including Slovakia, with measures aimed at nine individuals and four entities. Energy Diplomacy: Slovak President Peter Pellegrini has left for Azerbaijan to push deeper energy cooperation, support Slovak exports and expand industrial, technological and transport links, with talks focused on possible Slovak involvement in reconstruction projects. Nuclear Milestone: Slovenské elektrárne completed nuclear fuel loading for Mochovce Unit 4, moving the project from construction to physical activation and setting up first controlled fission tests before ramp-up to the grid. Industrial Tech Adoption: Reinforce3D and Czech additive firm 3Dees signed a partnership to make CFIP structural reinforcement easier to adopt in Central Europe, with 3Dees acting as regional sales partner for Slovakia and nearby markets. Rapid Manufacturing Delivery: Leyard Europe produced and shipped a Munich Airport retail LED video wall in just three days using its Prešov, Slovakia manufacturing facility. Gas Market Watch: Azerbaijan says it is negotiating expansion of gas supplies to the EU and wants long-term contracts to support new production and transport infrastructure.

Nuclear Power Milestone (Slovakia): Slovenské elektrárne says it has completed fuel loading for Mochovce Unit 4, placing 349 fuel assemblies (about 42 tonnes) into the reactor under the Nuclear Regulatory Authority’s supervision, moving the project from construction to physical activation and targeting first controlled fission before ramp-up to the grid. Energy Security & Infrastructure (EU/Region): The Vertical Gas Corridor is gaining momentum as capacity bookings for 2026/27–2029/30 at the Sidirokastro interconnector exceeded expectations, with 46% reserved for the period and further long-term demand signalled; Bulgaria and Greece also plan a joint energy-market acceleration document for EU ministers. Defense Industry Momentum (Slovakia): A new report highlights continued growth in Slovak arms production, with 2025 military equipment exports reaching €2.54bn and a sharp rise since 2022, driven by ammunition and military vehicle output. EU Sanctions Politics (Russia): EU member states are pushing to dilute parts of the 21st Russia sanctions package, especially around the floating-rate oil price cap mechanism, as deadlines approach. Automotive Trade Pressure (EU): The EU’s countervailing duties on Chinese EVs remain in focus as Chinese-branded registrations keep rising in Western Europe despite tariffs. Local Energy Reliability (Slovakia): Fuel load is also reported as completed at Mochovce 4, reinforcing the near-term push toward operational status.

Karlovy Vary Film Festival: The 60th KVIFF crowned “Fruit Gathering” (Aung Phyoe) with the Crystal Globe, while Slovak/Czech co-production “Lover, Not a Fighter” won the Proxima top prize. Slovak Defence Industry: New data highlights a sharp rise in Slovakia’s military exports, reaching €2.54bn in 2025 (up from €437m in 2022), with large-calibre ammunition and military vehicles driving growth. Energy Infrastructure: The Vertical Gas Corridor keeps building momentum: capacity bookings at the Greek–Bulgarian Sidirokastro point exceeded expectations, and Greece, Bulgaria and partners discussed expansion to North Macedonia and Serbia. EU Policy Pressure on Industry: MEPs debated measures affecting competitiveness, including support for automotive and rules for innovative firms, while Slovakia’s representatives pushed for a managed EV transition that protects jobs. NATO and Regional Cooperation: Slovakia’s leadership attended the Ankara summit, with talks also touching defence and energy cooperation and continued support for Ukraine. Transport/Manufacturing Link: Škoda Kylaq completed a 19,351-km Pune-to-Prague drive, underscoring India’s growing role in Škoda’s global production story.

Energy Infrastructure & Regional Integration: Bulgaria and Greece are pushing a joint strategic document to speed up Southeast and Central Europe energy market integration, with Vertical Gas Corridor partners including Slovakia meeting in Athens to advance planning and infrastructure ahead of the EU’s Russian gas import ban. Logistics & Cross-Border Gas: Vertical Corridor capacity bookings reportedly beat expectations, with major reservations at the Greek–Bulgarian Sidirokastro point and new countries (North Macedonia, Serbia) joining technical work to expand the corridor. EU Industry Policy: In the European Parliament, Slovak MEPs backed measures to boost EU competitiveness, debating automotive transition pressures from high energy prices, support for innovative firms via the EU Inc. framework, and closer EU–Mexico trade ties. Slovakia in NATO: President Peter Pellegrini met Turkish President Erdoğan on NATO summit sidelines, highlighting defence, energy and economic cooperation and thanking Türkiye for alternative gas supplies via TurkStream. Manufacturing Spotlight: Škoda Kylaq completed a 19,351-km Pune-to-Prague drive across 13 countries, underscoring India’s role in the brand’s global production story. Industrial Investment Signals: A Colliers report says 9 out of 10 Romanian counties rank among Europe’s most attractive industrial investment areas, pointing to continued growth in production and logistics. Renewables Outlook: An IEA-linked analysis argues renewables build-out could lift global GDP and cut energy demand, while noting some EU states—like Malta and Slovakia—still lag on electricity from renewables.

EU Industry Policy: The European Parliament debated measures to boost competitiveness, with Slovak MEPs flagging high energy prices and the risk of job losses in the auto transition, while also backing EU Inc rules to cut red tape for innovative firms and approving closer EU–Mexico trade ties that remove tariffs on many agri products. Energy Infrastructure: Vertical Gas Corridor demand and planning are moving fast: capacity bookings exceeded expectations, and a new technical meeting in Athens brings together transmission operators from Greece, Bulgaria, Romania, Hungary, Slovakia, Ukraine and more, with North Macedonia and Serbia set to join the expansion work. NATO & Defence Economy: Slovakia’s NATO summit sidelines included talks with Türkiye on defence, energy and trade, while broader Europe-wide coverage highlights rising military spending pressure and new counter-drone plans. Manufacturing & Mobility: Škoda Kylaq’s Pune-to-Prague overland drive (19,351 km across 13 countries) underlines the growing export push from India to Central Europe. Industrial Real Estate: A Colliers report says Romania’s industrial investment appeal is spreading, with 9 out of 10 counties in the top tier for manufacturing and logistics. Local Economy Watch: Slovakia’s industrial production fell 2.0% in the latest data point, adding pressure to an already tough competitiveness debate.

EU Industry Debate: Slovak MEPs joined a European Parliament push on competitiveness, with arguments over how to manage the auto transition, energy costs and jobs, while backing moves to expand the EU Inc. framework for innovative firms and approving an EU–Mexico trade track that cuts tariffs on many agricultural goods. NATO Ankara Diplomacy: President Peter Pellegrini met Türkiye’s Erdoğan on defence, energy and economic cooperation, thanking Ankara for alternative gas supplies via TurkStream, as Slovakia’s FM Juraj Blanár also focused on regional security and V4 priorities. Slovakia in Energy Corridors: Bulgaria and Greece are drafting a joint plan to speed up the Vertical Gas Corridor, and a technical meeting in Athens now includes Slovakia and Hungary for the first time, aiming to prepare infrastructure ahead of the EU’s Russian gas phase-out. Manufacturing & Mobility: Škoda Kylaq has finished a 19,351-km Pune-to-Prague drive across 13 countries, underlining India-made production’s global reach. Industrial Supply Chain Shock: Reuters reports an aluminium supply shock is reviving idled smelters, including Hydro’s partial restart in Slovakia, as energy-driven dependency concerns return. Local Industry Signals: Slovakia’s industrial production fell 2.0% (latest data), adding pressure to the competitiveness debate. Defense Industry Context: NATO summit-linked coverage highlights Türkiye’s defence exports, including Erdoğan’s revolver gifts to leaders, and broader European rearmament spending trends.

Energy Infrastructure: A Vertical Gas Corridor technical meeting in Athens (July 10) brings together gas transmission operators from Greece, Slovakia, Hungary and others to speed up planning and upgrades ahead of the EU’s Russian gas phase-out. Industrial Output: Slovakia’s industrial production fell 2.0% year-on-year in May, with transport equipment down 2.4% and chemicals up 17.8%, while electricity/gas supply and electronics also weakened. Manufacturing Investment: Colliers says 36 of Romania’s counties (about 9 in 10) rank among Europe’s most attractive regions for industrial investment, supported by modern industrial and logistics space growth. Automotive & Industry: Kia will offer a 2027 EV4 all-wheel-drive in Europe, built at its Žilina plant, with a larger battery and faster charging via an optional 22 kW onboard charger. Defense & Trade: Slovakia’s President Pellegrini met Türkiye’s Erdogan on NATO sidelines, discussing gas transit capacity, ammunition cooperation and potential SAFE instrument projects. EU Policy Watch: The European Commission is considering steps against Poland over an agricultural import embargo tied to the Ukraine trade dispute. Nuclear: Nuclear fuel loading at Mochovce Unit 4 has been completed, reinforcing Slovakia’s push to expand nuclear output.

Slovak Industry Watch: Slovakia’s industrial production fell 2.0% year-on-year in May, with transport equipment down 2.4% while chemicals jumped 17.8%. Energy & Metals: A Western aluminium supply shock is reviving idled smelters, including Hydro’s partial restart of the Slovalco joint venture smelter in Slovakia, as energy costs and import dependency reshape the market. Auto Jobs Pressure: The EU car industry is facing an “existential crisis,” with Porsche cutting another 4,000 jobs and Volkswagen weighing up to 100,000 role reductions, raising alarms for the wider supply chain. Logistics Integration: cargo-partner is advancing its NX Group integration in Slovakia—cargo-partner SR is renamed NX Cargo-Partner Slovakia from July 1, while the Nippon Express branch is set to be dissolved and staff join the NX team from August 1. EU Compliance: The European Commission opened four infringement cases against Slovakia, including issues around legal aid rules and the Drinking Water Directive. Construction Outlook: V4 construction is set to keep growing, but Slovakia’s growth is expected to slow to around 2–3% in 2026.

EV & Manufacturing: Kia is rolling out the 2027 EV4 AWD for Europe, built at its Žilina plant. The dual-motor setup (265 hp) cuts 0–100 km/h to 6.5 seconds, adds 1.5-ton towing, and pairs only with an 81.4-kWh battery (up to 560 km WLTP). It also brings an optional 22 kW three-phase AC charger to cut charging from 10–100% to about four hours. Industrial Output Watch: Slovakia’s industrial production fell 2.0% year-on-year in May, with transport equipment down 2.4% and chemicals up 17.8%; electricity/gas supply slipped 3.7% and electronics fell 10.3%. Logistics Integration: cargo-partner is advancing its NX Group integration: in Slovakia, cargo-partner SR is renamed NX Cargo-Partner Slovakia from July 1, while the Nippon Express branch is set to be dissolved and NX staff join cargo-partner from August 1. Energy & Policy: The European Commission opened four infringement cases against Slovakia in July, including legal aid rules, and the Drinking Water Directive; it also closed two cases after earlier reforms. Trade & Diplomacy: Slovakia and India plan to deepen cooperation after trade growth more than doubled during the Indian ambassador’s term. NATO & Defence Industry: President Pellegrini met Erdogan in Ankara, highlighting gas transit support via TurkStream capacity increases and discussing defence, energy, and nuclear waste repository plans.

EU Energy Regulation: The European Commission has launched infringement procedures against Slovakia and several other countries over restrictive mandatory authorisation or certification rules for energy installation and construction services, warning that such barriers can distort the internal market. Housing Market: Eurostat data shows house prices and rents rising across the EU in early 2026; Slovakia recorded one of the biggest annual jumps in house prices (+14.4%). Slovak Energy Milestone: Slovenské elektrárne has started loading nuclear fuel into Mochovce Unit 4, moving the plant into final commissioning; once online, nuclear could cover about 77.5% of Slovakia’s electricity. Industrial & Security Policy: President Peter Pellegrini says NATO’s Ankara summit was constructive, with allies discussing higher defence spending and the need for industrial capacity to absorb it. Trade Watch: Slovakia’s foreign trade surplus rose to €580.6m in May as exports grew faster than imports, with mineral fuels driving the result. Retail & Food Supply Chains: Tesco is reportedly considering selling its Central Europe operations (Hungary, Czechia, Slovakia), while Lidl is running a major Irish beef promotion across 26 countries, ending in Slovakia at the end of July. Materials & Manufacturing Inputs: Omya expanded its distribution partnership with EMS-GRIVORY into the UK and Ireland for high-performance polyamides used in automotive, electronics and industrial applications. Cyber Risk: ESET’s H1 2026 threat report highlights growing use of AI in attacks, including AI-themed phishing and malicious AI skills.

NATO & Defence Industry: Slovakia’s President Peter Pellegrini says the Ankara summit was “constructive” and backs the plan to raise defence spending to 5% of GDP by 2035, stressing that higher budgets must be matched by industrial capacity and arms production. Energy & Nuclear: Slovenské elektrárne has begun nuclear fuel loading for Mochovce Unit 4, moving the 471 MW reactor into final commissioning; once online, nuclear should cover about 77.5% of Slovakia’s electricity. Retail & Food Supply Chains: Tesco is reportedly exploring a sale of its Central European operations in the Czech Republic, Slovakia and Hungary, employing about 22,000 people; meanwhile Lidl is rolling out a €10m Irish beef promotion across 26 countries, ending in Slovakia at month-end. Banking Services Restructuring: ING Hubs Slovakia plans to cut up to 94 jobs in Bratislava as parts of fraud and financial crime prevention work shift to other ING locations. Cybersecurity: ESET’s H1 2026 threat report flags AI-assisted attacks, record QR phishing levels, and ransomware continuing to target security tools. Trade Watch: Slovakia’s trade surplus rose to €580.6m in May, driven by mineral fuels and related energy exports. EU Energy Policy: EU ministers push for “full use of nuclear” in the post-2030 framework, while green hydrogen rules face uneven national implementation that risks fragmenting the market.