Estonia ramps up defence budget to €10bn in face of Russian threat

Estonia’s defence ministry is set to allocate more than €10 billion over the next four years to strengthen the country’s defence posture, with significant investments planned in air defence, ammunition stockpiles and unmanned systems.

Estonia has already acquired an array of advanced technologies, including Blue Spear anti-ship missiles and combat drones. Under the new 2026–2029 development plan, further procurements are expected to bolster the country’s deterrence capabilities.

A central focus of the strategy is air defence. “A dedicated air defence brigade will be established, and Estonia will expand short, medium and long-range air defence capabilities by acquiring additional IRIS-T, Piorun and Mistral systems along with associated munitions,” the ministry said in a statement.

An illustration of a Blue Spear missile. Image by Israel Aerospace Industries.
An illustration of a Blue Spear missile. Image by Israel Aerospace Industries.

Roughly a quarter of the planned near-term investment will be directed toward strengthening ammunition reserves.

The Defence League – Estonia’s volunteer paramilitary organisation – will also see a notable funding boost. Its allocation will rise from €240 million over the previous four-year period to over €314 million, enabling improvements in infrastructure and live-fire training facilities.

Members of the Estonian Defence League at the Victory Day celebration in Rõuge on 23 June 2023. Photo by Geidi Lovise Lee.
Members of the Estonian Defence League at the Victory Day celebration in Rõuge on 23 June 2023. Photo by Geidi Lovise Lee.

The defence development plan is aligned with NATO capability targets and shaped by military guidance from the Commander of the Estonian Defence Forces. It outlines the strategic objectives and resources required to meet Estonia’s defence needs in an increasingly volatile region.

Separately, the interior ministry has pledged more than €1 million to enhancing national drone capabilities, citing Russia’s growing cross-border technological aggression as a key reason to accelerate investment in unmanned aerial systems.

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