AGP Executive Report

Nuclear Cooling Crisis: Record-low Danube levels are forcing Hungary’s Paks plant to cut output to about a quarter and pushing Romania to shut its last working reactor, spotlighting how drought is turning river-dependent nuclear power into a climate risk. US–Russia Energy Tariffs: A new US sanctions bill could let Washington impose up to 100% tariffs on countries buying large volumes of Russian oil and gas; Slovakia is named among the likely top buyers, while talks are said to be “reassuring.” Drought Relief for Slovak Farmers: Slovakia’s agriculture ministry announced eight measures, including earlier advance payments from Sept. 15 and temporary easing of grazing/grassland rules, to help farms hit by the dry spell. Gas Infrastructure Push: Transgaz plans to seek a shareholder role in US LNG developer Argent LNG via an MoU, aiming to secure long-term US LNG access and route supply through Romania toward Slovakia and neighbors. Logistics Deal: euShipments Group is acquiring Slovak fulfillment operator FHB Group, expanding CEE e-commerce logistics capacity. Cybercrime Watch: A new Android fraud setup pairs SpyNote with WindRelay to turn phones into fake contactless payment terminals, enabling fast card-present theft. Heatwave Impact on Industry: Europe’s extreme heat is straining transport, power generation and agriculture, with river levels and energy supplies under pressure.

Drought Relief for Farmers: Slovakia’s agriculture minister Richard Takáč announced eight measures to help farms hit by drought, including earlier advance payments (about €200m from Sept 15), €5m via the “green diesel” scheme for livestock, temporary easing of land and grazing rules, and no penalties for pasture livestock drops caused by drought. Japan–Slovakia Business Push: Parliament Speaker Richard Raši met Japan’s ambassador to discuss closer economic ties, highlighting 76 Japanese firms in Slovakia employing ~13,000 people, with focus on industrial modernisation, decarbonisation and innovation. Heatwave Hits Industry Logistics: Europe’s record heat and drought are disrupting river transport and agriculture; for Slovakia and the Danube region, low water levels are already affecting shipping, while drought pressure is also feeding into higher food and cereal prices. Cybercrime via Phones: A new Android fraud operation pairs SpyNote with WindRelay NFC relay malware, enabling card-present payment fraud in about 13 minutes after a bank-impersonation call. E-commerce Logistics Deal: euShipments Group acquired Slovak fulfillment operator FHB Group (100%), expanding its CEE network. Housing vs Vineyards in Bratislava: Bratislava rejected two new housing schemes on former vineyard land in Rača, reigniting the fight between development pressure and landscape protection.

Heat & Drought Disruptions: Europe’s historic heatwave is drying rivers and straining transport, power and agriculture, with the Danube hitting dangerously low levels and even exposing WWII wrecks and possible weapons. CEE Logistics Deal: euShipments Group (CEE eCommerce logistics) has acquired 100% of Slovak fulfillment operator FHB Group, integrating it into the group network while keeping the current management. Slovakia Housing Pressure: Bratislava rejected two housing projects on former vineyard land in Rača, highlighting the fight between new builds and landscape protection under the Little Carpathians. Defence Industry (Ammunition): CSG and Dezamet signed an agreement worth over EUR 100 million for 155 mm artillery ammunition components, including pyrotechnic parts and fuze subassemblies. Energy Trade Reality Check: EU LNG data shows Russian LNG imports falling, but Belgium still took 100% of its LNG from Russia in July; Hungary and Slovakia remain major buyers. Industrial Output Signal: Slovakia’s industrial output rose 2.1% year-on-year in June, pointing to a rebound in manufacturing momentum. Waste & Recycling Expansion: Paprec is expanding across Central Europe by acquiring Brantner Green Solutions (80%), adding operations in Austria, Slovakia and the wider region.

Heat & Water Crisis: Europe’s heatwave is tightening its grip again, with record temperatures and drought hitting transport, power and agriculture, while the Danube’s extreme low levels are even exposing Nazi-era warships and human remains. Energy Security Watch: EU data shows Russian LNG still flows—Belgium took 100% Russian LNG in July—while analysts warn Europe’s gas storage is lagging, raising the risk of another fuel crunch. Defense & Industry: CSG and Slovakia-linked Dezamet signed a deal worth over EUR 100 million for 155 mm ammunition components, as CSG also plans major large-caliber round output ramps. Slovakia Economy: Industrial output in Slovakia rose 2.1% year-on-year in June, after a May dip, with gains across basic metals, chemicals and machinery. Logistics Deal: Railtrans International and Croatia’s HŽ Cargo plan an intermodal freight joint venture to move 500,000 tonnes of Adriatic cargo by 2028. Bratislava Housing Pressure: The city rejected two vineyard-slope housing projects in Rača, citing limits on floor area and renewed conflict between development and landscape protection. Circular Economy: Paprec expands in Central Europe by acquiring Brantner Green Solutions, adding operations across Austria, Slovakia and the region.

Slovak Industry Pulse: Slovakia’s industrial output bounced back in June, up 2.1% year-on-year after a May dip, with gains across basic metals, chemicals and machinery. Nuclear Milestone: Slovenské elektrárne says Mochovce 4 reached criticality and minimum controlled power, moving into the next commissioning tests before power is gradually increased. Energy & Grid Funding: Slovakia’s grid programme secured further EIB support via a second €50m tranche for power-grid upgrades with ZSE Group. Logistics Deal: Austrian Post’s euShipments.com bought 100% of Slovak fulfillment provider FHB Group, expanding to 12 fulfillment centers and a 27-country network. Defense Manufacturing (Region Watch): Czech defense group CSG plans 850,000 large-caliber rounds in 2026 and is setting up a Slovakia joint venture for electronic fuses. Heatwave Pressure on Industry: Europe’s drought and record heat are hitting water-dependent operations and shipping, with the Danube at extreme lows and energy cooling concerns spreading across the region. Mining Remembrance: Slovakia marked the 17th anniversary of the Handlová mine disaster with officials and the public paying tribute to victims.

Industrial Output Watch: Slovakia’s industrial production bounced back in June, up 2.1% year-on-year after a 2.0% fall in May, with gains across two-thirds of monitored sectors, led by basic metals, chemicals and machinery. Energy & Grid: Slovak nuclear progress continues as Mochovce 4 reached criticality and minimum controlled power, moving into further commissioning tests before power is gradually increased. Logistics & Trade Routes: Slovak Railtrans International and Croatia’s HŽ Cargo plan a joint venture for intermodal freight linking Adriatic ports with Central Europe, targeting 500,000 tonnes by 2028. Mining Remembrance: Handlová marked the Day of Remembrance for victims of mining accidents, recalling the 2009 explosion that killed 20 people and led to legislative changes. Climate Pressure on Industry: Europe’s heat and drought are hitting rivers and energy cooling, with Danube and Rhine levels at record lows and shipping disruptions spreading across the region. AI Investment in Slovakia: Eldridge has taken a stake in Bratislava-based Sudolabs to help enterprises deploy agentic AI at scale, with day-to-day operations staying in Slovakia. Energy Security Signals: EU gas storage is lagging pre-winter targets, with Germany and the Netherlands far below normal levels for early August.

US–Slovakia Trade Shock: The US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act, opening the door to up to 100% tariffs on goods from top Russian oil and gas buyers—currently including Slovakia—as the bill heads to the House and then the president. Heat & Water Stress: A record-breaking Central European heatwave pushed Slovakia to 42°C, dried the Danube to historic lows and disrupted shipping and cooling for power plants, while drought also exposed WWII wrecks. Energy Storage Push: Bulgaria’s rapid build-out of grid-scale batteries is turning it into a regional “battery champion,” reshaping how power is stored and traded in the EU. Bratislava Mobility Upgrade: Škoda Transportation unveiled the ForCity Plus low-floor tram line for Bratislava, including the Škoda 29 T/30 T series with emergency-battery capability. AI Investment (Slovakia HQ): Eldridge acquired a stake in Slovak-headquartered Sudolabs, aiming to scale enterprise “agentic” AI deployments. Maritime Heat Signal: Scientists report world seas hit record July temperatures, with severe marine heatwaves affecting western Europe.

Danube Drought: Europe’s 40°C heat is pushing the Danube to historic lows, disrupting shipping and adding pressure to energy and water supplies across the region. Slovak Mobility: Škoda Transportation is rolling out the ForCity Plus low-floor tram family for Bratislava, with air-conditioning, Wi‑Fi and emergency-battery capability. Energy Security: Croatia is warning of autumn gas storage shortfalls as drought hits hydropower and even forces output limits at the Krško nuclear plant. US Tariff Shock for Slovakia: The US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving President Trump power to impose up to 100% tariffs on goods from top Russian-oil-and-gas buyers—currently including Slovakia—raising new uncertainty for trade and energy-linked costs. Local Industry in the Heat: Extreme temperatures are also exposing WWII wrecks in the Danube, while drought and wildfires keep straining regional operations. Defense & Tech: A Ukrainian drone reportedly exploded near a critical gas pipeline in Bulgaria, underlining how infrastructure remains a target.

US–Russia Energy Sanctions: The US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (86–11), giving President Trump power to impose tariffs of up to 100% on goods from the top five Russian oil and gas buyers: China, India, Azerbaijan, Hungary, and Slovakia. The bill still needs House approval and could be amended, with lawmakers and analysts warning it could hit Indian exports hard and raise crude-price risks if tariffs are actually used. Slovakia in the crosshairs: The legislation explicitly names Slovakia among the targeted importers, underlining how Central Europe’s energy choices are now tied to US trade policy. Energy security under drought pressure: Separately, Europe’s heat and drought are disrupting power and water systems, with the Danube at record lows affecting shipping and exposing WWII wrecks, while Croatia faces concerns about autumn gas storage fill rates. Regional energy politics: Azerbaijan said it could supply gas to Ukraine if needed, pointing to shifting regional roles as the continent’s energy system strains.

US–Russia Energy Pressure: The US Senate has passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, giving President Trump power to impose tariffs of up to 100% on goods from the five biggest buyers of Russian oil and gas—currently listed as China, India, Azerbaijan, Hungary and Slovakia—before the bill heads to the House after the August recess. Trade Deal Watch: Analysts say the move could raise costs and complicate India’s (and by extension regional) energy and trade planning, with tariff levels left to the US Trade Representative and subject to waivers. Danube Drought Disrupts Industry: Europe’s heat and record-low Danube levels are exposing WWII wrecks and disrupting shipping, with captains facing navigation headaches as Nazi-era vessels re-emerge in Serbia and the river’s low water threatens logistics across the corridor. Slovakia Energy Milestone Amid Climate Strain: Slovakia’s reported extreme temperatures (42°C record) underline how drought is tightening the operating conditions for energy and transport systems across Central Europe.

US–Russia Energy Sanctions: The US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (86–11), giving President Trump power to impose up to 100% tariffs on the top five Russian oil and gas buyers—currently China, India, Azerbaijan, Hungary and Slovakia—as well as extending Iran energy sanctions to 2031. Trade Impact for Slovakia: The bill now heads to the US House after the summer recess, raising the stakes for Slovakia’s energy-linked trade exposure if tariffs are applied. Heat, Drought, and Industry Stress: Extreme heat and record temperatures across Central Europe are driving wildfires and water shortages; in Serbia, firefighters battled major blazes as drought strains emergency response and local infrastructure. Ukraine Grain Disruption: Ukraine’s agricultural exports face a sharp drop as Russian strikes hit Odessa and drought limits Danube alternatives, threatening storage capacity and pushing up domestic pressure—an issue that can ripple into regional food and logistics costs. Energy Infrastructure Watch: EU gas storage refill is lagging badly, leaving the bloc far from its winter target and adding pressure to energy planning. Danube WWII Wrecks Exposed: Record-low Danube levels in Serbia have revealed Nazi-era shipwrecks, a stark reminder of how drought is reshaping transport and industrial waterways.

US-Russia Sanctions Push: The US Senate passed the Lindsey O. Graham Sanctioning Russia Act of 2026 (86–11), setting up new financial penalties and tariff powers that could hit countries buying Russian oil and gas, with Slovakia named among the top five importers. Trade-Tariff Backlash: Senators Wyden and Rand Paul warned the bill’s sweeping tariff authority could raise costs and strain ties with key partners, while the White House said any impact on India-US talks will be decided by negotiators. Slovakia Energy Under Heat Stress: Extreme heat and record-low Danube levels are disrupting regional transport and power cooling, with Slovakia’s nuclear output reported at reduced levels as water falls. Danube Logistics Disruption: Low Danube water is forcing shorter cruise routes and raising cargo costs across Slovakia and neighbours, while historic shipwrecks are surfacing. EU Gas Security Watch: EU gas storage is refilling too slowly to reach the 90% November target, widening the gap between countries that are tracking normal levels and those falling behind. Construction Tech in the Region: PORR tested a bricklaying robot at a Czech site, aiming for faster, more precise wall building. Energy Infrastructure Deal: Transgaz and Argent LNG signed an MoU to explore a strategic equity stake, targeting US LNG flows via Romania into Central Europe, including Slovakia.

Heat & Power Shock: A record-breaking heatwave is hitting Central Europe hard. Slovakia reached 42.2°C in Dolné Plachtince and Austria hit 41.2°C, while Italy put all 27 monitored cities on the highest “red” heat alert, extending cooling measures at major sites like the Colosseum. Danube Bottleneck: Low Danube water is now directly constraining energy and transport: Hungary’s Paks nuclear output has been cut due to cooling-water limits, and river shipping is slowed with multiple cargo routes operating at reduced loads. Energy Planning Response: Hungary adopted a new energy development plan focused on grid upgrades, expanded storage, and new wind and geothermal investments, while Slovakia says it will keep its agreed water releases to Hungary. Adriatic Oil Deal: MOL and Croatia’s JANAF quietly agreed a 2026 take-or-pay crude transport deal for 2.05 million tonnes, easing supply-route uncertainty after earlier disputes. Agriculture & Land Use: Environmentalists warn that drought and heat are pushing parts of Slovakia’s farmland toward overgrowth, threatening biodiversity and fodder supply. Cyber & Finance Ops: Liechtenstein’s beneficial-ownership register breach triggered temporary shutdowns of several government financial systems, raising compliance and security concerns across Europe.

Danube Drought Hits Industry: Record-low Danube levels are disrupting shipping and power generation across Central Europe, with Hungary reporting river cruise ships waiting and cargo vessels forced to cut loads to 10–20% while navigation depth falls below safe limits; the same drought is also pressuring nuclear cooling, with Hungary’s Paks shutdown and Romania’s Cernavoda reactors affected. Energy Security Moves: Slovakia says it will keep supplying Hungary the agreed Danube water flow despite low levels, while SPP reports meeting gas storage targets ahead of winter and expects higher storage by the heating season; Hungary meanwhile is drafting a new energy strategy focused on storage, grid upgrades, and new wind/geothermal. Grid-Scale Storage Boost: CATL-backed CNTE has brought the Czech Republic’s largest BESS project online (Modlany), adding 37.95 MW/41.7 MWh for frequency regulation, with plans to support Czech and Slovak markets. Industrial Policy for Nature & Land: Slovakia’s national parks are set to take full ownership and management of zoned forest areas, via a memorandum between the environment and agriculture ministries. Cross-Border Logistics & Trade: Ukraine is expanding “Solidarity Lanes” and talks with Slovakia, Hungary, Romania, Moldova and Poland to reroute grain as Black Sea shipping faces renewed pressure. Renewables Investment: PPC Group is entering Poland by acquiring a 277.3 MW wind/solar portfolio from EDP Renewables, targeting further growth across Central Europe including Slovakia. Automation in Construction: Austrian contractor Porr is using a bricklaying robot on a Czech site, aiming for safer, faster wall building with human supervision.

Heatwave Shock: Italy put all 27 monitored cities on the highest red heat alert as Austria hit a new record 41.2°C, while drought and wildfires disrupted power and transport across Europe. Danube Energy Crisis: Record-low Danube levels are forcing Romania and Hungary to shut down nuclear capacity and leaving boats stranded, with operators using emergency measures to keep reactors running. Ukraine Grain Logistics: With Black Sea ports effectively stalled, Ukraine is pushing wider “Solidarity Lanes” talks with neighbors including Slovakia to expand rail and port capacity before harvest storage fills. Slovak Energy Security: Slovak gas utility SPP says it has already met its first winter storage target (5.633 TWh) and is on track to reach the next 13 TWh target soon, despite weak market incentives. Regional Infrastructure: In Poland, Baltic Hub secured a 30-year lease for a new rail and container facility at Gdańsk, aiming to shift more cargo from road to rail. Construction Automation: Austrian contractor Porr is trialing a bricklaying robot (“Walter”) on a Czech project, targeting safer, faster wall building with human oversight. Workforce Mobility: Indonesia is exploring expanded placement of skilled workers into Slovakia, focusing on manufacturing, hospitality and elderly care. EU Industry Watch: Eurostat data shows industrial producer prices fell in the euro area (-0.3% month-on-month) while Slovakia rose (+1.1%).

Heat & Grid Strain: Austria hit a new record 41.2°C while Hungary curbed power use as a wider heatwave and drought stress energy systems across central Europe. Industrial Prices: Eurostat data show industrial producer prices fell 0.3% in the euro area and 0.2% in the EU month-on-month in June, with energy down but some categories rising; Slovakia was among the few with a monthly increase (+1.1%). Energy Security for Slovakia: State utility SPP reached its first underground gas storage target early (5.633 TWh), aiming to hit the 13 TWh second target within days and 17.5 TWh by winter. Power Network Investment: The EIB added €50m to ZSE’s grid upgrade programme, lifting total financing to €400m for distribution modernization, smart meters and automation across western and eastern Slovakia. Transport Infrastructure: Slovakia’s D4 northern bypass gets a step forward as NDS launched a tender for project documentation for the 11.76 km Karpaty tunnel near Bratislava, estimated at €1.7bn. Ukraine Trade Pressure: Ukraine is pushing EU “Solidarity Lanes” talks with neighbors including Slovakia to restore grain exports as Black Sea port capacity remains constrained by attacks. Manufacturing & Packaging: Euromilk expanded its SIG aseptic filling line to boost capacity and speed format changes for milk and plant-based drinks. Defense Tech Investment: North Vector Dynamics received a strategic investment from European industrial defence group CSG to accelerate defence technology deployment.