We are pleased to share with you the August 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 begins testing GDELS Hunter infantry fighting vehicle at Ādaži
Latvia’s National Armed Forces have begun field testing the Hunter, a Latvia-specific version of GDELS’ ASCOD tracked infantry fighting vehicle, with current trials focusing on counter-drone capabilities and layered protection.
The running gear is supplied by GDELS in Spain, while other components are integrated at the Patria Latvia facility in Valmiera.
Latvia has agreed to acquire 84 Hunter vehicles for nearly €800 million, with first deliveries to the Armed Forces planned for October 2026.
Norway orders 20 Patria 6x6 vehicles under the CAVS programme
Norway has ordered 20 Patria 6x6 armoured vehicles under the multinational CAVS programme, including C2 Command and Control variants equipped with Kongsberg PROTECTOR RS4 Remote Weapon Stations.
The agreement also covers support, training and spare parts, with options for an additional 40 C2 vehicles and weapon stations.
Deliveries are scheduled to begin in 2026, further strengthening interoperability and protected mobility across the Nordic and wider CAVS community.
BAE Systems’ ARCHER mobile howitzers delivered to the Swedish armed forces
BAE Systems has delivered the first four ARCHER 8x8 artillery systems to the Swedish Armed Forces under Sweden’s 2023 order for 48 systems, marking a milestone in the modernisation of its divisional artillery.
The handover paves the way for further deliveries of the mobile long-range artillery platform.
The development also has regional relevance, as Latvia signed a letter of intent with Sweden in 2025 for the future acquisition of 18 ARCHER 8x8 systems.
Patria Latvia becomes the sole owner of Defence Partnership Latvia
Patria Latvia has acquired SIA UNITRUCK’s shares in Defence Partnership Latvia (DPL), becoming its sole owner.
The transaction marks the next stage of DPL’s development and reflects Patria’s strategic priorities, while UNITRUCK will focus on other defence industry activities.
Patria stressed that the ownership change will not affect DPL’s operations, employees, projects, clients or partners, and Jussi Järvinen, Vice President of Patria Group’s Protected Mobility business area, reaffirmed the company’s commitment to ensuring continuity, stability and further growth in Latvia.
Drone surveillance system starts work on Narva River
Estonia has activated a new drone surveillance system along the Narva River, initially covering around one-third of the river border with Russia.
Five radar masts can now detect and track civilian and military drones, as well as other aircraft operating near the border.
Estonia plans to extend coverage along the full Narva River by 2027 and is also preparing to test counter-drone solutions for wider deployment.
Ukraine’s DEMZ signs deal with Lithuania on ammunition production
Ukrainian defence company Dnipro Electromechanical Plant (DEMZ) will establish ammunition production facilities in Lithuania, including an assembly plant near Balbieriškis and metal shell component production in Alytus.
Construction is expected to begin in autumn 2026, with production planned by the end of 2027 and up to 450 jobs to be created.
The NATO-standard output will primarily support Ukraine, while also strengthening Lithuania’s and Europe’s defence supply chains.
US to supply Lithuania with €11 million worth of night vision equipment
The United States will provide Lithuania with AN/PVS-14 night vision devices worth .78 million (€10.94 million) under a contract signed with US company Nightline Inc.
Delivery is required by 31 December 2030.
Lithuania’s Defence Ministry confirmed that the procurement is fully financed and administered by the United States, with no funding from Lithuania’s national defence budget.
Lithuania’s Giraitė Armament Plant launches €36 million capacity expansion
Lithuania’s Giraitė Armament Plant has begun construction of a €36 million second production line that will double ammunition output to 500 rounds per minute.
The new line is expected to be installed in Q3 2027 and reach full capacity in 2028, while the workforce is planned to grow from around 120 to 200 employees.
The expansion will support higher production volumes and wider exports, including to markets in Asia and Africa.