Baltic defence startups target Russia deterrence

Baltic defence startups are building drone and battlefield technologies as Lithuania, Latvia and Estonia seek stronger deterrence against Russia on NATO's eastern flank.

Lithuanian entrepreneur Rapolas Markevicius founded Pdkinematics after Russia's full-scale invasion of Ukraine in February 2022. The company builds precision guidance systems that help drones strike targets more accurately when GPS signals are jammed, and supplies them to Ukraine and European allies.

Markevicius said the start of the war was a “call for action” and that startups can create efficient, scalable technologies as warfare changes quickly.

The Baltic states face hostile actions attributed to Russia and its ally Belarus, including drone incursions and cyberattacks. Experts cited in the item said defence startups are improving regional economic resilience and helping deter aggression.

Lithuania spends 5.3 percent of GDP on defence, described as the highest share among NATO's 32 members. Its armed forces provide monthly access to fields and airspace so companies can test new technologies.

Elvinas Kukys, founder of Luna Robotics, said companies can test products with Ukrainian, Lithuanian and other NATO soldiers. Mario Bikarski of Verisk Maplecroft said the Baltic states have restructured their economies and invested in defence capabilities over the past four years.

Milan Trajkovic, an analyst at Fitch, said a growing defence startup sector would not stop a potential Russian attack by itself, but would probably make one more difficult. Invest Lithuania director Elijius Cevelis said the region's proximity to Russia means some investors require reassurance, but he described the situation as “the new normal”.