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
Already have an account? Log in
Want to keep reading this article?
You may also like
More from Defence Notes
-
![Estonia opts for smart, adaptable and cooperative solutions in the face of Russian threat]()
Estonia opts for smart, adaptable and cooperative solutions in the face of Russian threat
Estonian-made equipment is being put through the toughest of evaluations in the hands of Ukrainian soldiers resisting the full-scale Russian invasion which began in 2022. The country has long seen the threat and is continuing to adapt for the future.
-
![UK faces cost of balancing defensive capabilities abroad as Iran conflict widens]()
UK faces cost of balancing defensive capabilities abroad as Iran conflict widens
The UK has recently deployed a Type 45 destroyer to Cyprus and has bolstered its presence in the Middle East in recent weeks with supporting air power to protect neighbouring countries’ air defences.
-
![White House calls on Pentagon contractors to “rapidly and aggressively” boost weapon production]()
White House calls on Pentagon contractors to “rapidly and aggressively” boost weapon production
Intended to sustain Operation Epic Fury against Iran, efforts to increase the production of weapons and ammunition could expose long-standing weaknesses in the US defence industrial base.
-
![India’s strategic defence footprint expansion could be accelerated by Iran-Israel conflict]()
India’s strategic defence footprint expansion could be accelerated by Iran-Israel conflict
The latest escalation between Iran and Israel could shape New Delhi’s next-generation shield as India deepens cooperation with Israel on missile defence and drone production.
-
![Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?]()
Is the US magazine of air defence interceptors deep enough to sustain a long campaign against Iran?
The Pentagon spent a considerable number of THAAD and SM-3 rounds to defend against Iranian missiles in 2025 and has not fully replenished its reserves.
-
![New Zealand buys tri-service uncrewed kit from Syos Aerospace]()
New Zealand buys tri-service uncrewed kit from Syos Aerospace
As uncrewed technology continues to play an increasingly central role in modern military activities, New Zealand’s recent acquisitions point towards its the force’s focus on cost-effective capability.
