Finland and Israel have extended a memorandum of understanding (MoU) for defense cooperation over the next decade that will include research and development (R&D), cooperation, and procurement of defense equipment.
Finland’s public broadcaster YLE reported that the MoU was approved by Finnish Defense Minister Antti Häkkänen in early 2024, despite strong criticism due to the ongoing war in Gaza. The agreement, set to last until 2034, was not made public until the report by YLE.
According to the report, the MoU was drawn up in 2013, but with its validity about to expire, Helsinki proposed to Israel that the protocol be extended in early 2024. Finland proposed extending the agreement to 10 years rather than the previous five years, which Maj.-Gen. (res.) Amir Baram, director general of Israel’s Defense Ministry, agreed to.
“On behalf of the IMoD, I hereby accept the extension of the MoU in the form suggested by the Finnish side, for 10 more years. We appreciate our fruitful cooperation and wish for mutual projects and activities,” read a letter sent by the IMoD to YLE.
Major Israeli companies already have subsidiaries in Finland, as well as significant cooperation with local Finnish firms.
Defense & Tech understands that while Finnish purchases from Israeli defense industries may have been just a few million dollars a few years ago, they currently total hundreds of millions of dollars a year and are continuing to rise.
The largest single acquisition was the David’s Sling air defense system, purchased in 2023 for €316 million. Rafael also provided the Finnish Army with Spike anti-tank missiles in 2022 for €213m. The third largest purchase was the Gabriel anti-ship missiles bought by the navy in 2018, priced at €162m.
There are currently some 20 defense projects ongoing between the two countries.
The MoU was likely signed during the visit of the Commander of the Finnish Defense Forces, General Janne Jaakkola, who visited Israel from August 3-6th. According to a press release by the Finnish armed forces, Jaakkola and his Israeli counterparts discussed the evolving security environment as well as multi-layed air defenses.
“We are moving towards a capability using which Finland will no longer rely on single, point-by-point solutions, but, instead, build a multilayered, networked and scaled air defense system. The aim is to be able to respond to both rapid and wide-scale air and missile threats” Jaakkola was quoted as saying.
The signing of the extension was strongly criticized by the opposition, with Green League chair Sofia Virta quoted by the Helsinki Times as calling it a “historic shame.”
“When we demanded pressure on Israel, the government tightened cooperation. When we demanded that dependencies on Israel be reduced, the government deepened them,” Virta said in a party statement.
Häkkänen was quoted by YLE as defending the extension of the MoU as standard practice, saying that it was “not some dramatic new policy” as it was part of the implementation of existing air-defense and procurement agreements.
Close cooperation
As part of the MoU, the countries agreed on the establishment of a joint coordination group for Finland and Israel, which meets once a year to discuss bilateral defense ties
In May, Defense Ministry’s International Defense Cooperation Directorate (SIBAT) led a delegation of 32 Israeli defense companies to the second Finnish-Israeli Defense Industry Seminar.
The delegation to the seminar was held in the capital, Helsinki, and led by SIBAT Director Brig.-Gen. (res.) Yair Kulas.
It spanned the full spectrum of Israel's defense industry, specialized across a wide range of domains, with particular focus on air defense, unmanned aerial systems (UAS) and counter-UAS technologies, and border protection, alongside autonomous systems, advanced munitions, C2 and communications, electro-optical solutions, HLS, and cyber intelligence.
It included seven new defense tech start-ups under the ministry’s Directorate of Defense Research and Development (DDR&D)’s Mafat for Start-ups (MFS) program, along with larger defense companies, such as Israel Aerospace Industries, Rafael Advanced Defense Systems, Elbit Systems Tomer, UVision, Xtend, TSG, and Aeronautics.
Some 30 Finnish defense companies also attended the seminar, which was co-organized with the Finnish Ministry of Defense and the Finnish Defense and Aerospace Industries Association (PIA).
Finland’s deputy chief of staff, the head of its defense procurement administration, and its chair of the defense industry association, Tuija Karanko, also attended the seminar.
Following the event, an IMoD official told D&T that the biggest interest at the seminar was air defense and counter-UAS technology.
“Markets are important,” the IMoD official said. “Finland gives us a gateway into NATO and the broader European market, including potential manufacturers who are up to NATO standards.”
Finland, which recently joined NATO, is facing a menacing Russian neighbor and has suffered drone incursions both from Ukraine and Russia. The country shares 1,340 kilometers of border with Russia and is considered a key northern flank against Moscow.