A the Wednesday sitting the Government approved the draft Law on Defence and Security Industry proposed by the Ministry of National Defence to expand the opportunities for industry growth in order to strengthen national security, defence technology advance and Lithuania’s competitiveness in the international defence industry arena.
The draft law proposes improvements to legislation regulating development of security and defence industry aiming for a market economy model of growth of the sector.
“It is particularly important that Lithuanian companies have favorable conditions to engage in designing, developing and maintaining priority capabilities of our Armed Forces in the changed security environment. It is our unmistakable national security priority, along with better opportunities to reveal the immense potential of the Lithuanian defence industry. Together we are designing incentives for a very promising cooperation between the scientific and business sectors, which is vital for any advanced, viable national economy,” said Chancellor of the Government Giedrė Balčytytė.
“The hereby initiated changes will boost Lithuania’s defensive capacity and defensibility, strengthen the Armed Forces and encourage the advance of defence technology, as well as the international competitiveness of our industry. One step at a time, Lithuania can grow its ability to produce critical military equipment within the country. This is not only a way to encourage our manufacturers but also an opportunity to reduce the dependence from foreign suppliers and to ensure that the defence infrastructure is more secure and self-sufficient,” said Minister of National Defence Laurynas Kasčiūnas.
“We are developing security at home, in Lithuania, therefore we continue removing the obstacles in the way of defence industry development. We have set a goal to manufacture the products required for defence ourselves and to create jobs in our country along the way. That way we will ensure that Lithuania integrates defence innovation and the number of companies in the area of defence increases,” said Minister of the Economy and Innovation Aušrinė Armonaitė.
The Law introduces modifications to the to-date fragmented Lithuanian defence and security industry policy to the advantage of a new design of regulation which will highlight the role of security and defence industry in the context of national security. It is proposed that the Government, as an effort to ensure the core Lithuania’s national security interest, approves a list of defence equipment and weaponry necessary for developing priority capabilities of the Lithuanian Armed Forces which would show clear directions of the Lithuanian security and de fence industry development and allow industry entities to define for themselves which military technologies and equipment deserve investment.
It is anticipated that additional incentives created for security and defence companies of Lithuania will facilitate development of more high-demand products by the country’s industry as a result of more efficient cooperation between the academia and business.
The new Law also lays the foundation for industrial cooperation: Lithuanian manufacturers will be offered a chance to become involved in the priority defence equipment and weaponry procurements at the National Defence System. It regulates that, in the area of industrial cooperation, a part of foreign defence equipment manufacturers or suppliers will have to implement their contractual obligations through the Lithuanian entities of the economy.
The Law provides for additional instruments of financing to increase investment in the area of advanced defence technology scientific research, development and manufacturing, acquisition of products necessary for national defence developed by the Lithuanian defence industry and scientists, and enable the state to initiate orders to develop concrete products required for national security purposes.
The Law on Defence and Security Industry is tabled together with corresponding amendments to the Law on Public Procurement in Security and Defence and the Law on Control of Weapons and Ammunition to ensure more flexibility with regard to national security interests.
Design and development of defence technology in Lithuania would also allow a more efficient assistance to Ukraine in its self-defence against the Russian aggression.
The draft bills still have to be approved at the Seimas. The regulation is expected to be adopted and come into force as soon as July 1.
