Stenbock House, Tallinn – Oct. 31, 2024 – Estonia’s economic cabinet met today to discuss strategies to advance the country’s defence industry, emphasizing support for Ukraine in its ongoing struggle against Russian aggression.
In a press statement released on Thursday and sent to ChatnewsTV, the Estonian Prime Minister Kristen Michal emphasized the vital role of the defense sector in both national resilience and economic development of the country.
“The defense industry is part of Estonia’s defense capabilities and economic development,”
“Accelerating the Estonian defense industry benefits our economy through job creation and export opportunities while also providing critical military support to Ukraine, assuring our region’s stability,” said Prime Minister Michal.
Also, Taavi Veskimägi, Chairman of the Estonian Defence and Aerospace Industry Association, detailed the sector’s current state, while Defence Minister Hanno Pevkur outlined plans for an accelerated defence industrial park.
A crucial component of the plan is the establishment of a defence industrial park, which Pevkur described as a cornerstone of Estonia’s defence infrastructure.
The government aims to finalize the park’s designated spatial plan by August 2025, with production expected to commence as early as 2026.
Four potential sites in Ida-Viru, Lääne, and Pärnu counties are under consideration, covering up to 2 square kilometers to support ammunition, weapons, and drone manufacturing capabilities.
“The planning process is on track, with a final site expected by spring 2025,” Pevkur said, underscoring Estonia’s commitment to fast-tracking development. “There is significant interest from both local and foreign companies eager to commence large-scale production.”
Estonia’s military aid to Ukraine, projected to reach 100 million euros annually, forms part of a commitment under the coalition agreement to allocate 0.25% of GDP to support Ukraine.
A new initiative will allow Estonian firms to donate defence products to Ukraine, with Pevkur expecting to announce the support measure by November. “Estonian companies offer a range of defence and security products, including software solutions, for Ukraine’s aid,” he stated.
Taavi Veskimägi also presented the defence sector’s ambitious goal of reaching two billion euros in production volume by 2030, driven by cutting-edge technologies. “Our motto, ‘Making hardware smart,’ represents our mission to deliver effective and intelligent solutions for Estonia’s and Europe’s defence,” Veskimägi concluded.
Todays economic cabinet meeting was attended by Prime Minister Kristen Michal, Defence Minister Hanno Pevkur, and Taavi Veskimägi, Chairman of the Estonian Defence and Aerospace Industry Association, also in attendance was Minister of Climate Yoko Alender, Minister of Social Protection Signe Riisalo, Minister of Finance Jürgen Ligi, Minister of Infrastructure Vladimir Svet, Minister of Regional Affairs and Agriculture Piret Hartman, and Minister of Health Riina Sikkut, Minister of Foreign Affairs Margus Tsahkna, along with other senior government officials.
Editor: Gabriel Ani
