Estonia and Ukraine Sign Drone Industry Cooperation Agreement

Estonia and Ukraine have agreed to expand defense-industrial cooperation in drones, air defense and other military technologies, with plans to establish joint production capacity in both countries.

Estonian Prime Minister Kristen Michal and Ukrainian President Volodymyr Zelenskyy signed the agreement on July 7 during a bilateral meeting on the sidelines of the NATO summit in Ankara. The document was concluded under Ukraine’s Drone Deal framework and is the seventh agreement Kyiv has signed in this format.

The cooperation framework covers technology development, industrial partnerships and the exchange of operational experience. Identified areas include unmanned systems, sensors, early warning equipment, ammunition, battlefield management systems, maritime capabilities, information technology and cybersecurity.

Under the agreement, Ukraine is prepared to authorize selected defense exports to Estonia. The arrangement could also allow Estonian companies to acquire Ukrainian-developed technologies or establish joint ventures with Ukrainian manufacturers.

Estonian Defense Minister Hanno Pevkur said a bilateral steering group was being formed to assess potential projects under the Build with Ukraine framework. Selected systems could be manufactured in Estonia after receiving the required Ukrainian export licenses.

The Estonian government said the agreement does not impose specific financial commitments on the state. Individual procurement and production projects will therefore require separate decisions and funding arrangements.

For Estonia, the agreement provides access to technologies refined through Ukraine’s wartime operating experience while creating opportunities for domestic production. It could also help Tallinn expand military capability through systems adapted to the requirements of the Estonian Defense Forces.

For Ukraine, overseas partnerships provide a route to scale manufacturing, integrate Ukrainian companies into European supply chains and establish production capacity outside the country.

The agreement reflects broader European efforts to incorporate Ukraine’s defense industry into NATO and EU production networks, particularly in rapidly developing areas such as drones, electronic warfare, sensors and battlefield software.