Estonia publishes new defence procurement plan
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Armaments takes up the largest share of funding.
Estonia has unveiled its latest defence procurement plan, highlighting its key priorities for 2025-2029.
Published on 31 March, the Defence Investment Action Plan 2025-2029 follows the government’s announcement in mid-March to raise defence spending to 5% of GDP by 2026.
Armaments takes up the largest share of the funding, with approximately EUR3 billion allocated over the next five years, primarily towards “acquiring critical ammunition stockpiles”.
The largest proportion of which will go towards acquiring large and small-calibre ammunition in 2028 for EUR800 million and EUR300 million respectively, although details regarding the specific ammunition are omitted.
In addition, 76mm and 23mm ammunition will be procured this year for EUR120 million, as well as 12.7mm sniper rifles in 2026 for EUR10 million.
Meanwhile, the air, sea, and combat vehicle category will receive around EUR700 million over the next five years.
Within this category, Estonia notably plans on launching a new uncrewed aircraft system (UAS) programme to enhance the situational awareness of its defence forces. EUR30 million is being allocated this year, followed by an additional EUR3 million next year.
Deliveries are anticipated to be completed by Summer 2026, allowing training to commence in August or September, an Estonian Centre for Defence Investment spokesperson informed DSEI.
The centre has already launched a market survey for the programme, with responses expected this month. Following this, the centre will either make an initial selection decision or develop a further action plan. To align with deliveries by Summer 2026, the intention is to award a contract before the Autumn of this year, the spokesperson added.
Other significant investment priorities within this category include procuring watercraft, such as jet skis, boats, and speedboats for EUR9 million and modernising its Nurol Makina NMS 4x4 and Otokar 6x6 armoured vehicles for EUR10 million.
Estonia’s Sandown-class minehunters will also undergo life cycle maintenance, which will be “one of the biggest challenges”, the plan acknowledged.
Aside from this, Estonia will allocate over EUR1 billion towards cyber, radars, command and control and associated equipment over the next five years. However, specific equipment details remain largely undefined.
Similarly, vehicles, machinery and logistics will receive around EUR1 billion over this period. Few significant purchases are specified.
Estonia follows a slew of countries in Northern and Eastern Europe that have announced defence spending increases this year, including Belgium, Denmark, Lithuania, and the UK.
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