The Riigikogu is currently debating amendments to the Weapons Act and several other laws to enable more international entrepreneurs to operate in Estonia.

"Estonia has very good relations with Singapore, and the country is home to several strong defense industry companies. An even more important example for us is Ukraine. While Ukraine is neither a NATO nor a European Union member, under current legislation, Ukrainian companies are not permitted to operate in Estonia's defense industry sector," Minister of Defense Hanno Pevkur (Reform) explained.

Pevkur also named Australia and Japan as other examples.

The domestic defense industry is waiting to see what changes will be made.

For example, Milrem Robotics has delivered its tracked vehicle, Themis, to 19 countries. However, the quantities are still small.

"At the moment, there really isn't much. The quantities are small. Larger orders are expected to come in, and we would like to retain that value in Estonia. /.../ The highest value lies in the superstructure, including weapons integration, and then system integration. As a result, both the number of jobs and the added value are highest in these areas," said Milrem Robotics CEO Kuldar Väärsi.

Companies whose main customer is the Estonian Defense Forces will not be affected by the changes.

"This does not directly affect Go Craft, as we are not seeking additional investors. We already have an operating license and a place of operation. We are fully compliant with the law," said Tormis Saar, CEO of Go Craft, which maintains military machines and heavy-duty vehicles.

However, companies have had to invest to meet requirements and they still have concerns.

"Do we want a situation where citizens with European Union passports, living in Estonia, can develop this military technology, have access to all the basic components from the open market, and be able to work on this technology without any operating license or oversight?" Saar questioned.

Regardless of the amendments, the procedure for planning and construction permits must also be discussed in the Riigikogu, Pevkur said. Lithuania has already struck a deal with German defense giant Rheinmetall to produce projectiles.

"The Lithuanians have currently taken a principled stance that Rheinmetall can come and start building, and they will deal with the licensing issues later. However, our rule-of-law principles do not currently allow for such an approach. We want to align these principles as well," said the minister.

Pevkur hopes that the Riigikogu will adopt the law in October and that it can come into force in November.

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