Estonia is investing more than a billion euros in defense

16 August, 2023 Estonian K9 Thunder self-propelled howitzer. Photo from open sources. The Estonian government is investing EUR1.2 billion in defense.

This is approximately 20% of the country's total annual defense budget. The press service of the Estonian Ministry of Defense announced this on its social media pages. Additional investments are planned to purchase the ammunition in 2024-2027.

Last month, the country's Defense Minister Hanno Pevkur mentioned that he plans to increase Estonia's defense spending to 3% of GDP. He approved the development plan for the Estonian Armed Forces for 2024-2027, which provides for the purchase of weapons and equipment worth over EUR1.2 billion. Estonia is planning a major rearmament of its military, increasing the share of defense spending to 3% of gross domestic product in 2024-2027, up from the previous budget of 2.85% of GDP.

This could be the largest defense investment ever made by a Baltic country. The country's Defense Ministry wants to spend approximately £14.5 billion over the next ten years. Overall, the financial allocation of military spending for 2023-2026 suggests that 54% of the budget will be spent on procurement.

In 2023, the main areas of Estonia's procurement were artillery and long-range weapons, air defense systems, and unmanned systems. Together with Latvia, the country started negotiations to purchase Iris-T SLM medium-range air defense systems manufactured by the German Diehl Defense. In June 2022, at the NATO summit in Madrid, Estonia and Latvia signed a letter of intent on joint procurement of medium-range air defense systems.

Later, in May of this year, it was reported that the countries were negotiating the purchase of Iris-T SLM medium-range air defense systems. "Our aim is to provide Estonia with operational medium-range air defense capabilities by 2025. This means that the first systems should arrive in 2024," Hanno Pevkur, Estonian Defense Minister, noted.

In January, the Estonian Centre for Defence Investments signed a contract with the South Korean company Hanwha Techwin for the supply of new howitzers. Estonia expects to receive 12 additional 155-mm K9 Thunder self-propelled howitzers.

K9 Kou self-propelled howitzer of the Estonian Defense Forces. Photo credits: ERR

Also in May, the Estonian Ministry of Defense signed an agreement with Israel Aerospace Industries (IAI) to purchase loitering munitions.

The ministry did not disclose the contract value but stressed that it was one of the largest defense purchases the country had ever made.

At the same time, Estonian media reported the contract amount to be EUR100 million.