We are pleased to share with you the Summer 2026 edition of BALTIC INSIGHT – a monthly review providing clear, concise, and reliable analysis of key military, security, and defense developments across the Baltic region. In this edition, we highlight the most important events, emerging trends, and strategic shifts shaping the regional security environment.
Latvia, Finland and Norway agree to cooperate on the development of the Patria TRACKX
Latvia, Finland and Norway have signed a letter of intent to cooperate on the development of the Patria TRACKX next-generation tracked armoured vehicle.
The agreement covers information sharing, field trial results and the potential for joint development and procurement.
The countries aim to establish a common procurement mechanism that could enable national series production orders from 2027.
PDKINEMATICS raises €2 million to scale battle-tested UAV precision guidance across NATO
Lithuanian defence engineering company PDKINEMATICS has raised €2 million in seed funding to expand production and deployment of its UAV precision-guidance systems across Europe and Ukraine.
Its flagship Gannet system, already integrated with Ukrainian and European drone platforms, enables bomber-class UAVs to strike accurately from altitudes of up to 700 metres and has been selected for Lithuania’s Iron Wolf 2026 military exercises.
The round brings the company’s total funding to €3 million and will also support development of proximity-fuse and counter-EW technologies.
SUBmerge Baltic underwater drone developer partners with Naval Group
Latvian defence technology company SUBmerge Baltic has signed a cooperation memorandum with France’s Naval Group to advance autonomous underwater systems and maritime security solutions.
Its 30 kg PIKE drone can operate at depths of up to 300 metres and cover up to 80 km in autonomous mode, supporting infrastructure inspection, mine detection and port security.
The partnership could help integrate Latvian technology into wider European and NATO defence projects.
Patria and KOVO Armor sign a Memorandum of Understanding following Lithuania’s announced procurement of Patria 6x6 vehicles
Following Lithuania’s May 2026 announcement of its intention to procure 936 Patria 6x6 armoured vehicles, Patria has signed a Memorandum of Understanding with Lithuanian defence company KOVO Armor.
The agreement starts detailed discussions on local production, technology transfer, skills development, logistics and maintenance support in Lithuania.
KOVO Armor is the first company selected for Patria’s planned long-term Lithuanian industrial partner network.
Estonia receives first IRIS-T SLM air defence system
Estonia has received its first IRIS-T SLM medium-range air defence system, marking a major upgrade to its air defence capabilities.
The system can engage aircraft, helicopters and cruise missiles at ranges of up to 40 km and altitudes of up to 20 km.
Estonia has ordered three firing units, with the remaining systems expected to arrive in 2027
Latvia’s State Real Estate Agency contracts first Baltic Defence Line infrastructure works
Latvia’s State Real Estate Agency has signed contracts with five construction companies for the first-priority anti-mobility infrastructure works along the country’s eastern border.
The €12.98 million project includes approximately 27 km of anti-tank ditches, nine storage and deployment sites for engineering materials, and two communications towers across five municipalities.
Construction is expected to begin within weeks and continue in stages until autumn 2027.
French Armed Forces to buy Origin Robotics BLAZE C-UAS interceptors
The French Armed Forces have selected and ordered the BLAZE autonomous interceptor drone system developed by Latvia’s Origin Robotics following a multi-phase evaluation by the French Defence Procurement Agency.
First deliveries are scheduled within weeks, while French partner DSV will establish local assembly and manufacturing in France through a technology transfer agreement with Origin Robotics.
France becomes the fourth European operator of the NATO-codified BLAZE system, following Latvia, Estonia and Belgium.
EIB provides €290 million for Lithuania’s Rūdninkai military campus
The European Investment Bank has approved a €290 million financing package for the Rūdninkai military campus, one of the Baltic region’s largest defence infrastructure projects.
The funding covers all three main construction phases and will support infrastructure for the permanent stationing of Germany’s brigade in Lithuania.
The campus is expected to become operational in late 2027, strengthening Lithuania’s defence capabilities and NATO’s eastern flank.
Latvia and Ukraine deepen cooperation on unmanned systems production
Latvia’s ministries of defence and economics, the Investment and Development Agency of Latvia (LIAA), Baltic Forces, Ukrainian companies, Riga Technical University and Latvia’s drone industry association have signed memoranda to develop unmanned systems production and testing in Latvia.
The agreements cover investment attraction, technology transfer, component manufacturing and dual-use testing infrastructure.
The initiative aims to turn Ukrainian battlefield experience into local industrial capacity, new export products and advanced solutions for Latvia’s Armed Forces.
Lithuania will obtain more radars for the NASAMS system
Latvia will transfer SENTINEL radars to Lithuania free of charge, following a recommendation from the United States.
The radars will provide air surveillance and target-tracking data for Lithuania’s NASAMS air defence system, improving its ability to detect and engage airborne threats.
The transfer will strengthen Lithuania’s air defence and wider regional security cooperation.
Latvia and Lithuania agree on joint drills at the Selonia training ground
Latvian President Edgars Rinkēvičs and Lithuanian President Gitanas Nausėda agreed to hold joint military exercises at Latvia’s Selonia training ground.
The drills are intended to deepen cooperation between the two armed forces and improve their readiness to operate together.
Latvia also offered the training ground for broader bilateral defence cooperation beyond individual exercises.