Estonia to invest €8 billion across seven defense categories over five years.

Estonia has laid out a comprehensive defense investment plan for the period 2025–2029, as outlined by the Estonian Centre for Defence Investments (RKIK) on March 19, 2025. The plan, valued at approximately €7.9 billion, emphasizes continued capability development, increased procurement volumes, and broader international cooperation. In 2025, for the first time, foreign funding will surpass the national defense budget’s own resources, reflecting growing reliance on EU financial mechanisms and potential NATO partnership programs.
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Estonia’s defense investments for the period 2025–2029 are organized into several procurement categories, each with multi-year plans, for a total value of approximately €7.9 billion. (Picture source: Estonian MoD)

Notable advancements in 2024 included the delivery of coastal defense systems ranging from anti-ship missiles to naval mines, the construction of €100 million worth of infrastructure for long-range fires, and the preparation for the arrival of HIMARS launchers and loitering munitions. Estonia’s defense investments for the period 2025–2029 are organized into several procurement categories, each with multi-year plans. In the armaments category, Estonia plans to spend nearly €3 billion over five years, with notable procurements including 76 mm and 23 mm ammunition (€120 million in 2025), sniper rifles (€10 million in 2026), and large-caliber ammunition (€800 million in 2028).

The communications and radar systems category, led by a five-year investment of over €1 billion, will include acquisitions such as air and maritime surveillance systems (€66 million in 2025) and software, repair services, and system upgrades. Meanwhile, vehicle, equipment, and logistics projects will exceed €1 billion and feature procurements ranging from reinforced concrete bunkers (€99 million) to the acquisition and maintenance of wheeled vehicles.

In the air, naval, and combat vehicle sector, Estonia will invest over €700 million, including deliveries of Turkish-produced 4x4 and 6x6 armored vehicles in 2025, further K9 self-propelled howitzers, and unmanned aerial systems. Notable 2025 projects also involve €21 million for armored personnel carriers for Moldova, €30 million for UAV procurement, and lifecycle support for Sandown-class minehunters and Leopard 1 support tanks. Soldier gear and life support systems will see expanded availability via dynamic procurement systems, with €17 million allocated in 2025 for diver equipment and €10 million for CBRN gear. Further planned acquisitions include ballistic helmets and customized gear for special units.

Infrastructure and support services form another vital pillar of the investment strategy. Estonia committed €220 million in construction investments in 2024, including the completion of Ämari runway renovation and new buildings for weapon systems in Ämari and Tapa. Infrastructure development will continue with additional barracks, food facilities, and training areas, including a new unmanned aerial systems training center in Nurmsi. Estonia’s contribution to NATO’s Security Investment Programme (NSIP) has resulted in ongoing and upcoming projects such as the construction of naval piers in Miinisadam and future upgrades to Ämari airbase. The NSIP program is fully integrated into Estonia’s national procurement system, promoting unified standards and cost-efficiency.

Estonia is also contributing to defense capacity-building beyond its borders. Since 2022, RKIK has managed EU-funded assistance packages to Moldova under the European Peace Facility (EPF), focusing on logistics, mobility, command and control, and surveillance capabilities. Projects include the delivery of a Czech-made passive radar system, and 2025 will see the signing of an armored vehicle procurement deal. Estonia will also procure short-range air defense missile systems for Moldova. Estonian companies are encouraged to participate in these international tenders, with familiarity with the national procurement framework being advantageous.

The Estonian Centre for Defence Investments (RKIK) manages a vast infrastructure portfolio divided into regional segments. In Western Estonia, key projects include new barracks, a radar, air defense infrastructure, and a mini defense industry park in Ämari, with €150 million in investments projected between 2025 and 2028. In the North-East, investments will total nearly €80 million, focusing on expanding facilities in Tapa, Jõhvi, and Tallinn. In the South, the €50 million budget will cover expansions at Reedo and Tartu and the development of Luunja maintenance facilities. Additionally, the training ranges portfolio includes 38,000 hectares across Estonia, with future projects targeting new shooting ranges and infrastructure linked to the Baltic Defense Line—an Estonian, Latvian, and Lithuanian initiative to reinforce national borders with military-grade barriers, bunkers, and observation posts.

The logistics of daily operations are supported through procurement of services and materials including maintenance, cleaning, waste management, and fuel supply. Dynamic procurement systems allow for ongoing supplier integration. The food service portfolio alone, estimated at €50 million from 2025–2029, supports daily meals for roughly 5,000 personnel, crisis-time provisioning, and national food stockpiling. Recent improvements include the Paldiski food complex and Reedo’s 3,000-person capacity facility, while future plans cover expansion in Tartu and Ämari, alongside sustainability-focused upgrades and supplier network development.