The "Build with Ukraine" initiative combines Estonian technological solutions with Ukrainian combat experience, enabling the faster production of innovative defence industry solutions.

Estonia plans to allocate 15 percent, or nearly €15 million, of its 2027 aid measure to support joint production projects, the Ministry of Defense said in a statement.

Several Estonian companies have expressed interest in starting cooperation with Ukrainian partners to produce attack and interceptor drones, as well as electronic warfare solutions.

Ukrainian companies have shown interest in establishing production facilities in Estonia, which would allow them better access to European and other markets.

"Several Estonian defense industry companies are already operating in Ukraine today, but we see that defence industry cooperation clearly needs to be more efficient, especially regarding product testing and practical usability, so they meet the needs of Estonian Defence Forces," Pevkur said.

He said the agreement also allows companies to scale up volumes more quickly to meet demand once a product has entered production.

Estonia has committed to allocating at least 0.25 per cent of its GDP annually for military support to Ukraine.

By 2026, this will reach approximately €110.7 million. In the coming years, the focus of the aid will primarily be on acquiring drones and anti-drone systems, as well as supporting the Estonian and Ukrainian defense industries.

Estonia also supports the training of Ukrainian troops and has contributed €11 million to the PURL initiative, which finances the supply of critical military equipment from the United States to Ukraine.

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