Estonia’s defence capabilities will reach a new milestone in 2026, when air defence against targets flying at altitudes of up to 20 kilometres (12 miles) will gain an additional layer through the introduction of medium-range air defence.
There will also be enhancements to drone capabilities, increased firepower for the land forces, and steps towards developing the naval fleet, among other measures, the Estonian defence ministry said in a statement.
Estonia’s defence spending will amount to €2.4 billion in 2026, or 5.43% of the country’s GDP – nearly four times higher than in 2021, before Russia’s full-scale invasion of Ukraine. Between 2026 and 2029, 37% of Estonia’s defence budget will be allocated to procurement, with a further 25% earmarked for ammunition, in order to continue the rapid replenishment of stockpiles.
In 2026, Estonia’s air defences will gain an entirely new layer, as the medium-range air defence system jointly procured with Latvia is delivered. The system, manufactured in Germany and proven in Ukraine, is capable of intercepting aircraft at a range of around 40 kilometres (24 miles) and at altitudes of up to 20 kilometres (12 miles).
The first private munitions factory launched in Ämari
To enhance its ability to strike the enemy from a distance, the number of K9 self-propelled howitzers will be increased to 36, supplemented by the existing dozen wheeled Caesar self-propelled guns. Himars systems are already in place to strengthen deep-strike capabilities, with ammunition supplies continuing, while Estonia is also procuring additional Chunmoo multiple rocket launchers from South Korea, the defence ministry said.
Estonia also intends to renew its naval fleet. Minehunters will receive new main engines this year and a contract will be signed to extend their service life. A market analysis is under way for the construction of up to four new vessels during the period covered by the current development plan. Maritime surveillance radars are also being modernised, and a coastal defence missile system has been established.
In the defence industry sector, the first Estonian munitions factory operated by a private company has begun production in Ämari. This year, construction of the core infrastructure will commence at the Ermistu Defence Industrial Park in Pärnu County, where four companies have already been selected.
A further defence industrial park will be developed in Kiviõli, with negotiations under way on the production of large-calibre ammunition there. Meanwhile, work on the Estonian section of the Baltic defence zone will progress through the procurement of large bunkers and the construction of anti-tank ditches, according to the defence ministry.
