This arms manufacturer was jailed in Brussels. Now Estonia is welcoming his investment
Estonia is considering a major investment from a Turkish arms manufacturer, Arca Defense, to boost munitions production. The project is controversial due to the founder's past legal issues and corruption allegations.
Why it matters
The intersection of national security, defense industrial policy, and ethical vetting of foreign investors poses a complex challenge for EU and NATO member states.
As Estonia moves to increase munitions production amid threats from Moscow, a mining town is pinning its hopes on a €300-million investment by a controversial Turkish arms manufacturer.
This article is part of an ongoing series.
Northern Estonia is as flat as a pancake, until you approach the town of Kiviõli. Out of nowhere, two hills loom up. They are so high that one even has a ski lift going to the top.
These are not natural mountains, but the result of mining in the region. The company Kiviõli Keemiatööstus (Kiviõli Chemical Industry) has been extracting brown shale oil here for decades.
Now, as Europe shifts to clean energy – and the threat from Russia, just sixty kilometres away, becomes ever more acute – the region is looking for ways to diversify away from the industry that has literally shaped its landscape.
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