Estonia and Latvia to acquire 3000 military vehicles for $700 million

Europe, News October 9, 2023 , by IRIA No Comments

Estonia and Latvia signed a joint contract with a Swedish multinational vehicle manufacturer, Volvo, as well as two other mobility developers for the procurement of around 3000 military vehicles. The contract has been estimated at around $700 million.

The Estonian Center for Defense Investments (RKIK) signed a contract on behalf of Tallinn and Riga on October 6, 2023. The contract was signed with heavy vehicle manufacturers Scania, Veho, and Volvo to supply various types of vehicles. Veho won the tender for vehicles up to 5 tons in mass while Volvo and Scania did so for vehicles over 5 tons.

Under the contract, the three companies would provide up to 3000 military vehicles to the two Baltic states over the course of the next seven years. Categories of these vehicles include logistical vehicles for paved roads and tactical vehicles for both asphalt and off-road deployments. All vehicles will be shipped in parts and the assembly will be done at the destination. The first batch of the vehicles is expected to arrive as early as 2024.

According to Estonia’s Defense Forces Technical and Weapon Systems Chief Major Raigo Puusepp, “The introduction of a new generation of vehicles will ensure the sustainability of logistical support for the Defense Forces, ease of access to spare parts, and increases the effectiveness and mobility of our units.” He also stated that “in the first stage of the procurement, the acquisition of nearly 400 vehicles is planned.”

Puusepp noted that upon the completion of delivery, the vehicles would be distributed among Estonia and Latvian militaries as well as the mutual defense league of the two countries, border forces, and police.

*^{Volvo FMX trucks delivered to the Estonian defence forces. (Image Credit: Swedish Chamber of Commerce in Estonia)}*

The vehicles, machinery, and logistics strategic category manager at the RKIK Erko Sepri said, “So far, the EDF (Estonian Defense Forces) have mostly been equipped with those vehicles which have been previously used by allies, but due to the heightened security situation in Europe, these resources have been depleted.”

Defense spending of Baltic countries

For almost two decades, the Baltic states relied on Finnish-made weapons and ammunition as well as Soviet-era military technology. The latest military modernization drive in the region has come after the threat posed by Russia as it continues the invasion of Ukraine. Baltic states of Latvia, Estonia, and Lithuania have become more active in acquiring the latest weapons with Tallin leading the charge.

Estonia’s military spending is projected to account for at least 3% of its GDP from 2024 to 2027 and at least 2.85% of its GDP for this year. NATO alliance encourages its member states to spend at least 2% of their GDP on defense. Tallinn would spend an additional $1.1 billion specifically for ammunition this year. Overall, 54% of the designated military spending budget will be spent on procurement.