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Estonia and IAI sign one of the largest procurement deals in the country's history

3rd May 2023 - 16:00 GMT | by The Shephard News Team in London, UK


The Mini-Harpy is a multi-purpose loitering munition manufactured by Isreal Aerospace Industries. (Photo: IAI)

Isreal Aerospace Industries (IAI) has announced that Estonia has contracted it to provide loitering munitions in one of the most expensive defence procurement the Baltic nation has ever made.

On 2 May 2023, IAI announced that it had signed a deal with Estonia for the procurement of "advanced long-range loitering munitions", which was one of the "most expensive defence procurement Estonia has ever made".

According to the announcement, the award came after a market research project which began in the spring of 2022, and deliveries are due to conclude in 2024.

The contract value or drone selected was not mentioned in the announcement. However, on the same day, Estonian Defence Minister, Hanno Pevkur, tweeted that the contract was worth nine figures and posed alongside IAI's Mini Harpy

Based on this information and the estimated unit cost of the loitering munition, Shephard's Defence Insight estimates that Estonia has acquired 985 units of the platform in a €100 million ($113.04 million) contract. 

The contract announcement comes slightly later than anticipated. In February 2023, Hanno Pevkur said the country was set to procure loitering munitions to enhance its indirect fire capabilities in Q1 of 2023. At that time, EER, Estomia's public broadcaster, reported that the decision was made in light of Russia's aggression.

The Shephard News Team


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