The Ministry of Finance forms a working group on defence and security industry development
The Ministry of Finance, implementing the provisions of the XX Government Programme on the development of the defence and security industry, is launching the formation of a working group to coordinate the strategic defence industry projects developed in the country and to prepare solutions for the establishment of a state-controlled defence industry holding. The formation of a working group is the first step in the implementation of paragraph 322 of the Government Programme, which provides for the establishment of a state-controlled defence industry holding company. The newly created holding will consolidate public investment, enable more efficient management of major defence industry projects and ensure coordinated State involvement in attracting private investors to strategic capabilities.
“Defence industry is part of the state security infrastructure, which requires strategic leadership and coordinated institutional work. In developing this area, the State cannot be a passive observer. Its role is essential both for national security and for a real investment breakthrough”, Minister of Finance Kristupas Vaitiekūnas says.
The Minister emphasizes that in order to attract large international investors and to ensure the availability of capital, the State must be an active partner in projects that are of strategic importance to Lithuania. “We have to evaluate the investment from the first contact with the investor till the launch of activities of the plant. This working group and the future holding company will allow the State to act in more swift, clear and effective manner, moving from individual initiatives to the systemic development of the sector”, K. Vaitiekūnas states.
The draft order prepared by the Ministry of Finance and submitted to the institutions for coordination provides that the working group will analyse and coordinate defence industry investment projects in which the State or its controlled companies would be partners in establishing joint capital legal entities, contribute to the implementation of industrial cooperation agreements, when armaments suppliers in Lithuania develop production capacities for technologies, equipment or components, develop a defence industry holding business model – economic feasibility, governance structure, investment policy and operational plan.
The working group will be led by the Ministry of Finance. It is projected that the group will involve the representatives from the Ministry of Economy and Innovation, Ministry of National Defence, Ministry of Foreign Affairs, Ministry of Energy, Government Office, AB Giraitė armament factory, Defence Resources Agency, UAB EPSO-G and PI Invest Lithuania.
Defence industry investment projects are particularly important for Lithuania’s security, as they will ensure the domestic production of ammunition, strengthen supply chains and develop the competences needed for Lithuania to become a reliable partner in international defence supply chains.
“International defence companies are now deciding on new production sites. Lithuania needs to act quickly, predictably and be ready to take decisions. This working group and the newly created holding will ensure that no strategic project gets stuck due to lack of coordination or decisions”, K. Vaitiekūnas emphasizes.
Currently, in large projects, the State is represented by UAB EPSO-G through its subsidiary EPSO-G Invest, which implements the 155 mm artillery ammunition plant project together with Rheinmetall. The companies managed by the Ministry of Finance also contribute to the financing of this capacity. By 2028-2029, this investment is expected to be taken over by the company(ies) managed by the Ministry of Finance, therefore a long-term and specialised governance mechanism for the defence industry – the holding – is needed.
Last updated: 26-11-2025
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