Feb 12 • 14:19 UTC 🇪🇪 Estonia ERR

The construction of a large-caliber ammunition factory is still in the negotiation phase

Negotiations are ongoing for the establishment of a large-caliber ammunition factory in North Kiviõli, Estonia.

The construction of a large-caliber ammunition factory in North Kiviõli, Estonia, is still at the negotiation stage with potential investors. In September, Estonia's Defense Minister Hanno Pevkur and Minister of Economic Affairs and Infrastructure Erkki Keldo announced that they are expecting a factory that would start producing large-caliber ammunition. However, they noted that a contract had not yet been signed with any potential investor, and further discussions are needed to finalize the deal.

By late October, the Ministry of Defense expressed optimism that negotiations could conclude within weeks, but as of February, no progress has been made beyond this early phase. A representative from the Ministry of Economic Affairs and Communications confirmed that talks with potential investors are ongoing. The ministry emphasized that establishing such a factory involves substantial agreements that require careful consideration and negotiation.

The delays in solidifying the deal raise questions about defense production capacity in Estonia, particularly amid the current geopolitical climate. The factory is seen as an important step towards enhancing Estonia's defense capabilities and could have significant implications for both national security and the local economy. As negotiations continue, stakeholders will be watching closely to see whether a formal agreement can be reached to move the project forward.

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