Estonia boosting defence industry with lessons from Ukraine, says country’s economic minister
Estonia already operates CV90s but an order for variants of the IFV is still being negotiated. (Photo: Estonian Ministry of Defence)
Estonia is looking to boost its local defence industry with directed funding, industry parks, support through international orders for equipment and rapid prototyping.
Estonia’s economy is on a war footing, accelerating efforts which started before neighbouring Russia’s full-scale invasion of Ukraine in 2022. Notably, this includes a ramp-up of industrial capability which began in 2014, according to Erkki Keldo, the country’s Minister of Economic Affairs and Industry.
Key measures include making it easier to establish companies, financially supporting startups, modifying contracting requirements to include localisation, reducing red tape and creating industrial parks and test centres, Keldo explained.
In an additional move to support industry, Estonia last year modified its procurement policies to require localisation. The most apparent example of this is the country’s plan to
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