Lithuanian arms and ammunition manufacturers are urging the government to order more locally produced weapons, arguing that excessive bureaucracy and a preference for Western suppliers are stifling the country’s defence industry.
Domestic producers say that while Lithuania increasingly tests its homegrown weapons in Ukraine, the government remains focused on attracting large foreign defence companies to build production facilities in the country.
Calls to cut red tape
Local defence companies have asked the government to commit to purchasing a share of its equipment from Lithuanian producers and to lift restrictions that limit exports.
Robertas Juodka, a board member of the Defence and Security Industry Association, told the parliament’s Economic Committee last week that Lithuanian drone manufacturers are unable to sell combat drones to the British army because of regulations banning the export of drones equipped with explosives made by another company.
“It’s absurd,” Juodka said. “Selling drones to Britain is considered ‘terrorist arming’ or ‘terrorist financing’. Italians, Estonians and others can do it – but we can’t. Why?”
Industry lobbyist and former deputy economy minister Vincas Jurgutis criticised the government for failing to buy domestic products even after supporting their development.
“When a Lithuanian-made system gets good feedback and is even used by Ukrainians, we still don’t buy even 10 test units for our own armed forces,” Jurgutis said. He proposed that at least 5 to 10 percent of defence procurement be sourced from Lithuanian producers.
Government focused on foreign investment
Former defence minister and current MP Arvydas Anušauskas acknowledged that the state buys too little locally made weaponry, despite significant public investment in innovation.
Meanwhile, Lithuanian ammunition manufacturer Valdas Žala said procurement agencies could support small domestic companies by including local production requirements in tenders. “The Resource Agency is buying 5 million rounds of ammunition, but there’s no requirement or even desire for them to come from a Lithuanian producer,” he said.
Defence Ministry chancellor Dainius Ivoškis told lawmakers that the government is purchasing more Lithuanian-made weapons, which are often sent to Ukraine for testing on the battlefield. However, he said greater expectations are tied to deals with major global arms companies.
“We aim to ensure that part of production is transferred to Lithuania when we buy equipment – whether it’s infantry fighting vehicles or other systems,” Ivoškis said. “This remains part of ongoing negotiations.”
Attracting western partners
Vice Minister of Economy Povilas Petrauskas said Lithuania is currently developing or planning 12 new investment projects with foreign defence firms worth a combined 1.36 billion euros.
“The main areas are drones, chemical components, explosives and ammunition,” Petrauskas said. “The key investors are companies from Ukraine, Germany, France and Canada.”
Lithuania currently has more than 200 companies involved in defence-related production, 23 of which export their entire output.
Newsletter
Every Friday morning.
