The threat of Russian hostility and ongoing military activity on the Belarussian border is driving Lithuania to increase its defense military spend over the next 5 years to reach $1.9 billion by 2026, a compound annual growth rate (CAGR) of 7.26%, according to leading data and analytics company GlobalData.

GlobalData’s latest report ‘Lithuanian Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2026’ reveals that this sum will largely be spent on a modernization program aimed to resist a potential incursion or hold off enemy forces, until support from NATO members can arrive.

William Davies, Associate Aerospace and Defense Analyst at GlobalData, comments: “Lithuania spends a higher percentage of its GDP on defense than any other European NATO ally, consistently spending over 2% since 2018. This spending is due to the ever-present threat from Russian forces on the Belarussian border.”

Spending is being focused on improving Lithuania’s ability to mobilize and move troops more quickly, with the purchase of Black Hawk Helicopters and 200 Oshkosh Joint Light Tactical Vehicles (JLTVs).

Davies continues, “Both the JLTVs and Black Hawks will improve Lithuania’s ability to respond rapidly to a threat. The acquisition of the Black Hawks will also aid Lithuania’s ability to host ally nations, moving commanders in and out of border zones with greater ease. Russia will continue to pose a significant threat to Lithuania and any acquisition will be aimed at deterring this threat.”

Lithuania’s increased spending is in keeping with its Baltic neighbors, Estonia and Latvia. All three nations are looking towards conventional methods to deter Russian aggression with Military equipment and hosting larger NATO allies such as the US and UK.

Davies adds, “Despite these deterrents, Russia will continue in its efforts to disrupt the Baltic nations, more than likely through nefarious activities such as cyber attacks and dis-information campaigns.”