Estonia, Latvia Ink $700M Contract for 3,000 Military Vehicles

Estonia and Latvia have signed a 693-million-euro ($730.5 million) framework agreement with three mobility developers to supply military vehicles.

Under the contract, the companies will provide up to 3,000 vehicles comprising various models of wheeled systems over seven years.

Categories include logistical vehicles for paved roads and tactical vehicles for both asphalt and off-road deployments.

Veho will deliver vehicles of up to five tons (5,000 kilograms), while systems weighing more will be produced by Volvo Eesti and Scania Eesti.

All systems will be shipped in parts. The first vehicles will arrive in the Baltic nations by 2024.

Work for the contract includes a three-year extension period, depending on the governments’ requirements.

“In the first stage of the procurement, the acquisition of nearly 400 vehicles is planned,” Estonian Defence Forces Technical and Weapon Systems Chief Maj. Raigo Puusepp stated.

“The introduction of a new generation of vehicles will ensure the sustainability of logistical support for the Defense Forces, eases access to spare parts, and increases the effectiveness and mobility of our units.“

Mercedes-Benz military vehicles
Mercedes-Benz military vehicles. Photo: Veho

Updating Vehicle Assets

Upon delivery, the vehicles will be distributed across the Estonian and Latvian defense forces, defense leagues, and police and border forces.

Some systems will be made available for purchase to each country’s defense ministries.

“So far, the Estonian Defence Forces mostly have been equipped with the vehicles that have been previously used by the allies, but due to the heightened security situation in Europe, these resources have been depleted,” Estonian Defence Investments Strategic Category Manager Erko Sepri explained.

“Now, for the first time ever, we have the opportunity to order new vehicles for the Estonian Defence Forces based on their exact needs.”

Trucks From Volvo

While Veho and Scania did not specify the vehicles they will supply, Volvo said it will deliver five truck configurations based on the company’s Forward Control Medium Xtreme or FMX heavy-duty trucks.

Alongside the platforms, Volvo will provide spare parts and maintenance.

The trucks will be fabricated at the firm’s Tuve assembly plant in Gothenburg, Sweden.

“This is a significant deal for Volvo Defense and a proof point of the reliability of our products and of Volvo as a long-term business partner,” Volvo Defense President Andreas Svenungsson said.

“I am looking forward to working with our Estonian and Latvian customers in tailoring the best products and services for them during the years to come.”

Forward Control Medium Xtreme (FMX) truck
Forward Control Medium Xtreme (FMX) truck. Photo: Volvo

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