Latvia and Ukraine's Joint Drone Factory Near the Russian Border: A New Defense Strategy

This manufacturing partnership is the culmination of a growing defense relationship between the two countries, built on the formal "Drone Deal" framework.

The "Drone Deal" Framework

The larger framework is a formal "Drone Deal" signed by Ukrainian President Volodymyr Zelenskyy and Latvian Prime Minister Andris Kulbergs on the sidelines of the Nordic-Baltic Eight summit in Tallinn in early June 2026 . The deal covers:

• Joint production of long-range strike drones, naval drones, interceptor drones, and bomber drones .
• Technology transfer between Ukrainian and Latvian companies .
• Two-way supply: Latvia will supply Ukraine with Latvian-made anti-drone systems; Ukraine will supply Latvia with strike drones, ground robots, and naval unmanned systems .
• Knowledge exchange: Ukraine's battlefield drone experience is being turned into structured cooperation for the Latvian defense industry .

Latvia has also been leading the International Drone Coalition for Ukraine (co-founded with the UK), which has grown to 17 member countries and committed to delivering around 100,000 drones, including nearly 5,000 locally produced Latvian drones worth €15 million in the past year .

New Counter-Drone Systems

Prime Minister Kulbergs announced that new counter-drone systems along Latvia's borders with Belarus and Russia are expected to become operational in July and August 2026. These systems are designed to respond to aerial threats without deploying aircraft on every occasion . This is part of a broader investment: Latvia is allocating €200.54 million for air defense in 2026 .

Mobile Interceptor Teams on the Eastern Border

In response to drone incursions in March and May 2026 , Latvia deployed mobile drone-interceptor teams to its 400 km eastern border within days . Key details:

• Teams consist of up to four soldiers equipped with all-terrain vehicles and interceptor drones .
• The interceptor drones come from two domestic manufacturers: Origin Robotics (the BLAZE autonomous interceptor) and Eraser .
• The deployment is explicitly modeled on Ukrainian battlefield practice of mobile counter-drone teams .
• Latvia also signed a multi-year framework agreement with Origin Robotics for continuous supply of BLAZE interceptors, structured so other European nations can plug into the same procurement .

Latvia's Emergence as a European Drone Hub

• NATO's Innovation Range: NATO's new Innovation Range for uncrewed systems opened at Latvia's Sēlija Military Training Area in March 2026, hosting its first testing campaign on UAS and counter-UAS technologies from across the alliance .
• Drone Summit: Latvia hosted an international Drone Summit in Riga in May 2026 .
• Investment: The country is investing €50 million in UAS capabilities for 2026, up from €20 million in 2025 . Latvia has also become the first NATO member state to introduce acoustic drone detection along its entire eastern border .
• Industry Growth: Defence Minister Andris Sprūds has stated that Latvia is "on the path of becoming a drone superpower," with the industry boosted by Drone Coalition procurement, EU funding (including €4.5 million from the European Defence Fund for Origin Robotics), and growing international companies choosing Latvia for drone testing .