Lithuania says air defence funding is sufficient after Estonia redirects armour funds

Lithuania’s defence ministry has stated that the country has already allocated adequate funding for air defence, following Estonia’s decision to redirect €500 million from an armoured vehicle purchase to air defence and drone systems.

Estonia’s government announced this week it would halt its planned €500 million procurement of CV90 infantry fighting vehicles, instead prioritising air defence and drone capabilities. Defence Minister Hanno Pevkur cited lessons from Ukraine’s war, market conditions, and military advice as key factors in the decision.

Lithuania’s National Defence Minister Arvydas Anušauskas told BNS that Lithuania had already earmarked around half a billion euros for air defence last year, aiming to build an integrated system by 2030—a step Estonia had not yet taken. “Lithuania is already receiving ordered radars, signing new contracts, and negotiating with manufacturers, though equipment delivery timelines remain extended,” he said.

The Defence Staff is currently reviewing air defence development plans and may request additional procurements if needed, potentially requiring extra budget allocations. However, Anušauskas stressed that funding alone is not the sole challenge—defence industry capacity to deliver systems on time is equally critical.

“Estonia will face the same issues, as simply allocating money isn’t enough—they’ll also need to negotiate contracts and delivery timelines, which aren’t short,” he noted.

The cancelled CV90s were due to arrive in Estonia by 2030. Instead, the country will modernise its existing fleet to extend their service life by a decade. Lithuania lacks this option, as it has no older-generation vehicles to upgrade, Anušauskas explained. Estonia’s earlier investments in defence—predating Russia’s 2022 invasion of Ukraine—gave it a head start in procuring such equipment, whereas Lithuania only began significant defence spending increases after the war began.

Estonia’s decision was partly driven by manufacturer warnings of potential delays. Lithuania, part of the same five-nation procurement group for CV90s, has also received signals about possible setbacks. While Lithuania expects around 100 vehicles by 2030, Anušauskas acknowledged risks of receiving an incomplete batch on schedule. He warned that if the manufacturer’s revised terms prove unsatisfactory, Lithuania may also reconsider the purchase and seek alternative suppliers.

“We must maintain negotiating leverage to pressure the defence industry,” he said.

The focus on air defence in the Baltic region has intensified following recent incidents where Ukrainian drones, launched at Russia, crashed in NATO territory.