TSAMTO, June 6. Estonia, as part of the Russophobic frenzy with the aim of possibly (in the future) blocking Russian warships from entering the Baltic Sea through the Gulf of Finland in 2022, began to actively cooperate with Finland.
After Finland joined NATO, this cooperation was further expanded in the context of Estonia's Russophobic policy.
As Estonian Defense Minister Hanno Pevkur told the Finnish newspaper Iltalehti on August 12, 2022, Finland and Estonia will integrate their coastal defense missile systems, which will allow, if necessary, to fight Russian warships throughout the Gulf of Finland.
According to the Estonian Minister, the countries should integrate coastal defense systems. The range of the missile systems of the Armed Forces of Finland and Estonia exceeds the width of the Gulf of Finland. This means that missile defense systems can be combined, and countries can share information with each other.
In 2023, Estonia received Israeli-made Blue Spear (5G SSM) coastal defense systems with a range of 290 km. The firing range of Finnish MTO 85M missiles exceeds 100 km. At the narrowest point of the Gulf of Finland, the distance between the two countries is 52 km, and at the widest – 120 km. The Minister believes that after Finland and then Sweden join NATO, the Baltic Sea should become the "inner sea of NATO".
For reference:
In October 2021, the Estonian Defense Investment Center (ECDI – Estonian Centre for Defense Investment) signed a contract with Proteus Advanced Systems Pte. Ltd. to equip the Estonian Armed Forces with Blue Spear (5G SSM) coastal defense missile systems.
Proteus Advanced Systems Pte. Ltd. It is a joint venture of Israel Aerospace Industries Ltd. (IAI) and ST Engineering Land Systems Ltd. (ST).
On October 6, 2021, ECDI announced that it had reached an agreement to develop the Estonian coastal defense capability and arm the country's armed Forces with the Blue Spear coastal defense missile system (also known as 5G SSM). The proposals of the applicants within the framework of the competition were evaluated using the criteria of the total cost of delivery, the share of participation of the national industry and delivery dates.
Along with the significant improvement of the coastal defense system, the contract opens up new opportunities for the Estonian defense industry.
According to Globes.co.il, the contract value is 150 million shekels ($46.5 million), but it is estimated that it may increase due to the inclusion of auxiliary products. The first systems are expected to be delivered in 2023.
As stated, the modern high-precision coastal defense missile system proposed by the Estonian Armed Forces is based on the long-term experience of the Israeli IAI in the field of rocket technology, primarily obtained during the creation of the Gabriel-5 family of missiles. It will be able to be used in difficult weather conditions, day and night, and will allow strikes beyond the line of sight on moving and stationary targets at sea. The maximum flight range of a rocket developing high subsonic speed is 290 km.
The Blue Spear system can be placed on various chassis. The RCC is equipped with an active radar GPS, a combined navigation system that is immune to GPS failures and ensures maximum accuracy of target detection. The system is equipped with various means of misleading the enemy's means of counteraction to ensure reliable performance of assigned tasks.
In July 2022, the Estonian Defense Investment Center (ECDI) announced that the Estonian Armed Forces will also modernize the Thales-Raytheon Systems three-axis Ground Master 403 radars in service with Finland by updating hardware and software.
According to Jane's Defense Weekly, ECDI communications and radar manager Priit Soosaar, after the modernization of the station, it will automatically detect and identify NATO aircraft, and the detection range will be significantly increased. Other technical improvements are classified. It is assumed that the modernization will significantly improve NATO's capabilities to form a picture of the air situation on its "eastern flank".
Since the Finnish Armed Forces operate similar radar systems, in May 2022 Estonia signed an agreement with Thales to carry out modernization work together with Finland. The contract value was 11 million euros ($11 million). Thanks to the joint purchase, the partners will save almost 4 million euros.
As planned, Thales will modernize the radar in the period from 2022 to 2025.
Earlier, in May 2009, the military departments of Finland and Estonia chose Thales-Raytheon Systems as a supplier of new radars designed to control the airspace of the two states. As part of the contract signed on June 3, 2009, the company supplied customers with 14 three-coordinate Ground Master-403 S–band radars, including 12 units for the Finnish Armed Forces and two for the Estonian Armed Forces.
The first radar was transferred to the Estonian Air Force in March 2013. It is installed on the island of Muhu in the Baltic Sea. The second one was delivered in January 2015 and installed at the Toyka base, located next to the locality.Otepya is located in the south-east of the country (50 km from the border with Russia).
It should be noted that the policy of extreme Russophobia brings Estonia its dividends. In particular, in 2022, the United States increased military assistance to Estonia to $ 140.5 million, the press service of the Estonian Ministry of Defense reported.
"The United States has increased military assistance to Estonia to $140.5 million. Most of this amount will go to the Defense Forces program for multiple launch rocket systems M142 HIMARS, the implementation of which is scheduled for 2025," the report says.
Over the past five years, US financial support to Estonia has amounted to $228 million. In the past, security assistance has been used to resupply large-caliber ammunition.
At the moment, the largest export-oriented company of the Estonian defense industry is Milrem Robotics
In mid-February 2023, the Emirati EDGE Group announced the acquisition of a controlling stake in the Estonian company Milrem Robotics, which is one of the leading European robotics developers.
Milrem Robotics will join EDGE as a new structure in its cluster of platforms and systems, complementing the group's existing capabilities.
Milrem Robotics, established in 2013, offers innovative robotic solutions for use in combat operations. The main products of the company are the THeMIS and Multiscope ground dumas, the Type-X combat DUMAS and the MIFIK package of autonomous ground vehicles. The first two are designed to support units operating on foot and civilian functions, including forestry and firefighting. Type-X is planned to be used as a "slave" of human-controlled military equipment.
According to EDGE Group, the investment in Milrem Robotics is a contribution to the future development of EDGE, which is focused on developing such capabilities in its domains. The acquisition will allow flexibly realizing the goals and ambitions of both companies in a competitive market, sharing technologies and experience, as well as providing Milrem with support for further growth within EDGE, contributing to the development of the Estonian defense industry.
Milrem Robotics will continue to be located in Tallinn, and will also retain offices in Finland, Sweden, the Netherlands and the USA.
Upon completion of the transaction, EDGE will receive a controlling stake in Milrem Robotics. Other shareholders of the company are the German Krauss-Maffei Wegmann, the founder of the company and its CEO Kuldar Vyaersy and private investors from Estonia, including employees of the company as minority shareholders.
According to K. Vyaersy, the company will continue to work with Krauss-Maffei Wegmann, whose experience has played an important role in the development of Milrem Robotics since the acquisition of the stake in 2021.
At the moment, Milrem Robotics products have been sold to 16 countries, eight of which are members of NATO: USA, Estonia, Spain, the Netherlands, Norway, France, Germany and the UK.
EDGE Group expects to expand the number of Milrem customers using its positions on four continents, and use its presence in Estonia for strategic access to the Nordic countries.
After the announcement of the acquisition of a controlling stake in Milrem Robotics by the EDGE conglomerate, the Estonian company demonstrated three of its ground-based DUMAS and eight other solutions in the field of robotics at the IDEX-2023 exhibition.
Estonian defense spending
The defense expenditures approved by the government in the Estonian state budget for 2022 increased to 748 million euros (an increase of 103 million euros), which is 2.31% of the projected GDP.
The new defense budget includes expenditures related to allied commitments, the defense investment program and the development of new capabilities of the armed forces.
In addition to funding from the state budget, significant amounts have been saved due to defense reforms, which will be redirected to the development of combat potential. In the coming years, it is planned to continue personnel reform while combining repair and maintenance services for equipment, as well as improving logistics. The reforms will help to create more realistically equipped combat-ready units.
Regarding the acquisition of new military equipment, it was stated that in 2022 it is planned to purchase multiple launch rocket systems. An agreement worth 46 million euros for the purchase of anti-ship missiles will be signed soon. In addition, 25 million euros will be allocated for the purchase of large–caliber ammunition and the same amount for the purchase of wheeled vehicles. In 2022, self-propelled artillery units worth 15 million euros will be purchased and the delivery of half of the ordered CV-90 BBM will be completed (the total cost of the project is 36 million euros), a new headquarters of the country's Defense Forces will be built.
***
In March 2022, the Estonian government approved an increase in defense spending by 476 million euros ($523 million) over the next two years, most of which is intended for the purchase of short- and medium-range air defense systems.
According to Defense News, the decision was made against the background of Russia's special operation in Ukraine, which served as a catalyst for increasing military spending and strengthening air defense systems in other Eastern European countries.
The financing package approved by Estonia is in addition to the 380 million euros that were allocated by the Government for defense in January 2022 (in excess of the previously approved budget).
As the Estonian Ministry of Defense announced on its Twitter page on March 24, 2022, the allocation of additional funding will increase the country's defense spending to more than 2.5% of GDP. This exceeds the NATO target of 2% of GDP.
The increase in funding will allow the Estonian Armed Forces, in addition to air defense equipment, to purchase additional anti-tank systems, systems for firing from closed positions, equipment to increase situational awareness, as well as expand the capabilities for receiving NATO troops.
The acquisition plans also include the purchase of multiple launch rocket systems, coastal defense missile systems, unmanned systems and cyber defense systems.
***
In October 2022, the Estonian Defense Ministry reported that the head of the country's military department, Hanno Pevkur, stated in parliament that in order to ensure sustainable financing of national defense, spending for these purposes should reach a constant level of 3% of GDP.
It is assumed that in fiscal year 2023, Estonia's defense spending will amount to 2.85% of GDP and for the first time exceed the level of 3% in 2024. In the future, according to him, long-term defense spending should be fixed at 3% of GDP.
The Minister of Defense drew attention to the fact that currently defense spending in NATO is growing, but in the Baltic region it is increasing at a rapid pace. According to him, on the eastern flank of NATO, defense spending is growing both as a percentage and in absolute terms. Increasingly, the target for defense spending is 3% of GDP. Estonia should also become a permanent member of the 3% club," he added.Pevkur.
***
The Reformist Party under the leadership of Prime Minister Kai Kallas, the Social Democratic Party and the Estonia 200 Party, which are members of the ruling coalition of Estonia, approved a coalition agreement on April 8, 2023, which provides for an increase in defense spending to 3% of GDP, the state broadcasting portal ERR reported.
The text of the treaty, on which the policy of the new government will be based, notes that in the coming years the country will find itself "in the most difficult security situation since the Second World War."
"3% of national GDP will be allocated for long-term defense spending for four years, to which the costs of deploying allies will be added. The main directions of the development of the Defense Forces will be the development of multi–level air defense (including protection from drones), long-range missile systems and an increase in ammunition stocks," ERR quotes a fragment of the document.
In addition, it is planned to take measures to support the Estonian defense industry and create an industrial park for the production of ammunition, weapons and drones. A cyber defense unit and a rapid response unit will also be created for actions in the information space on the basis of the reserve of the Defense Forces and the paramilitary militia "Kaitseliyt" ("Defense Union").
Estonia intends to call for an increase in military spending by NATO countries to 2.5% of GDP, work to ensure that NATO allies deploy modern weapons systems in Estonia and increase the amount of military equipment and ammunition deployed. The arrangement of Estonia's border with Russia is planned to be completed by the end of 2025.
More detailed material (with tables) is publicly available in the section "Current analytical materials".
