In an exclusive interview with award-winning Indian defence and strategic affairs journalist Ashish Singh, Mr. Kaimo Kuusk, the Permanent General Secretary of the Estonian Ministry of Defence, discusses Estonia’s substantial increase in defence spending and the strategic priorities underpinning this significant investment.
Key areas explored include potential collaboration with Indian defence companies in artillery production, air defence, and drone technology, reflecting Estonia’s broader strategy to diversify its defence procurement sources amid evolving security challenges posed by Russia.
Mr. Kuusk highlights Estonia’s openness to cooperation under India’s ‘Make in India’ initiative, revealing that Indian companies have expressed interest in Estonia’s defence industrial parks. He further elaborates on procurement processes, noting the flexibility Estonia retains in sourcing defence equipment despite its membership in the EU and NATO.
Below are selected excerpts from the conversation, covering Estonia’s defence budget priorities, potential collaborations with Indian companies, and the nuances of defence procurement strategies.
Q: There has been one consistent figure regarding Estonia’s defence spending, which next year is expected to rise to 5.4% of GDP—approximately two billion US dollars. Is this correct?
Kuusk: It’s a bit higher, actually closer to two and a half billion euros, approaching nearly three billion US dollars.
Q: Considering Estonia is preparing for potential conflict scenarios involving Russia, and with a defence budget of approximately two and a half to three billion US dollars, how are your priorities sequenced? Are there any specific areas where Indian companies can contribute, especially given India’s recent efforts to become more self-reliant in defence manufacturing and reduce its dependence on Russian weapon systems?
Kuusk: We will invest 5.4% of our GDP in defence, or as we like to say, we’re investing in our own freedom. We have identified different layers of priority—like air defence, deep-strike capabilities, and naval capabilities. Specifically, when we talk about deep-strike capabilities, we are also talking about long-range artillery. Ammunition is important, particularly 155mm calibre artillery ammunition, and in that sense, India is a really good producer of both artillery systems and ammunition.
We are developing our defence industrial parks as well. Recently, we had a deadline for companies to apply to start production there. Among more than a dozen participants, there were also some Indian companies interested in establishing manufacturing here—producing, let’s call it, things Estonia needs for its defence. But let’s see how the competition goes and what the results will be. Cooperation possibilities are certainly there in air defence, ammunition, and also drones—drones have become a crucial capability, as we’ve clearly seen from the Russian aggression against Ukraine.
Q: When purchasing and developing these defence systems, is there a preference toward conventional EU or NATO suppliers, or is procurement open to non-EU and non-NATO countries as well?
Kuusk: Well, if we talk about the sources of funding, we have Estonia’s own taxpayer money, and there are also possibilities to secure loans. Loans, of course, also have to be repaid by taxpayers. To obtain EU loans, there are certain criteria to be met—preferences naturally favour European-made products—but there are also opportunities to include elements from outside Europe.
However, when spending our own taxpayer funds, there are no such limitations. We are free to choose whatever offer works best for the long term, considering criteria such as interoperability, whether your neighbours have something similar, so that if you need it, you can change the spare parts with your allies.
Q: India has been actively promoting its ‘Make in India’ initiative in the defence sector. Are Estonian companies, the armed forces, and the government open to this kind of cooperation?
Additionally, you’ve mentioned that more than a dozen companies, including some from India, have shown interest in the Estonian defence park. Will these ventures involve pure manufacturing, co-development, or comprehensive technology transfer?
Kuusk: We’ll soon see exactly what their offers entail. Production here is certainly one option, as are co-production and joint ventures.
Estonian defence companies themselves are also exploring export possibilities, which naturally makes international collaboration attractive.