On Tuesday, April 22, 2025, Lithuanian Prime Minister Gintautas Paluckas paid a visit to Stockholm, where he held talks with Swedish Prime Minister Ulf Kristersson on defense cooperation, transatlantic security, Russia’s full-scale invasion of Ukraine, and European competitiveness. One of the topics discussed was the ongoing negotiations regarding Lithuania’s purchase of CV90 infantry fighting vehicles, manufactured by the Swedish company BAE Systems Hägglunds (a part of BAE Systems).
Photos: Ninni Andersson, Government Offices of the Kingdom of Sweden
The one-on-one meeting took place at Sager Palace, the official residence of the Swedish Prime Minister. Later, a press conference was held at Rosenbad Palace.
Enhanced Defense Cooperation Between Sweden and Lithuania
Sweden maintains good and close relations with Lithuania, which is an important cooperation partner within both NATO and the European Union. In November 2024, Swedish Defense Minister Pål Jonson and then-Lithuanian Defense Minister Arvydas Anušauskas signed a letter of intent on enhanced defense cooperation. On Tuesday, Prime Ministers Kristersson and Paluckas discussed further steps to strengthen security and defense cooperation between Sweden and Lithuania.
One area of interest is the potential coordinated purchase of CV90 infantry fighting vehicles by Sweden, Lithuania, Finland, and Norway. Since the CV90 is used by almost every Nordic and Baltic country, the Swedish government sees opportunities for stronger collective defense, improved interoperability, and enhanced supply security.
“Boosting our defence today is an investment in our freedom tomorrow. The Government sees major benefits in a coordinated acquisition of CV90, as this will speed up deliveries, reduce costs and benefit our defence industry ties. A Statement of Intent on CV90 cooperation is currently being drafted, and Sweden looks forward to taking this concrete step forward in strengthening our joint security,” said Prime Minister Kristersson.
CV90 for Lithuania
It is worth recalling that on October 22, 2024, Lithuania’s State Defense Council (Valstybės gynimo taryba, VGT) authorized the initiation of the procurement process for Leopard 2A8 tanks and the discussed CV90 infantry fighting vehicles.
At that time, it was announced that following the completion of the political, economic (industrial), and financial assessments, a decision had been made to begin negotiations with Sweden regarding the CV90. It was also stated that the planned acquisition involves tracked infantry fighting vehicles for two land forces battalions (around 90 units — editor’s note).
Subsequently, on December 18, the Lithuanian Ministry of Defense reported that Defense Minister Dovilė Šakalienė held her first meeting with representatives of the Swedish company BAE Systems Hägglunds to discuss the planned purchase of tracked infantry fighting vehicles and to explore deeper cooperation with the Lithuanian defense industry.
It is also worth noting that on October 15, 2024, the Lithuanian Ministry of Defense purchased an additional 27 Vilkas wheeled infantry fighting vehicles (the German-Dutch GTK Boxer), which will join the 89 vehicles already in service — totaling 116 units (although procurement plans foresee at least 211 vehicles).
Funding Approved
On Wednesday, April 23, 2025, the Office of the Prime Minister of Lithuania announced that the government had approved a draft resolution submitted by the Ministry of Finance, which allocates an additional 187.7 million EUR from borrowed funds for the priority development of defense capabilities. These funds will be directed toward advance payments by the Ministry of Defense for the acquisition of CV90 infantry fighting vehicles and NASAMS medium-range air defense systems.
“Already last year, while refining the budget, we increased the state’s borrowing limit by 800 million EUR, thus creating an opportunity to allocate additional funds for national defense needs should specific requirements arise. This allocation is the first to be financed from the designated borrowing limit. It enables us to fulfill contractual obligations to suppliers on time, ensuring that critically important weapons and military equipment are delivered to us according to schedule,” said Deputy Minister of Finance Darius Sadeckas.
The funds were allocated taking into account a decision by the Ministry of Defense dated April 7, which indicated that in the second quarter the ministry must make an advance payment of 150 million EUR for infantry fighting vehicles and 37.7 million EUR for medium-range air defense systems intended for the National Division.
The budget law for 2025–2027 granted the Ministry of Finance the authority to take out loans for national defense needs, including military mobility and dual-use (civilian-military) transport infrastructure, as well as military infrastructure necessary to provide host nation support and to finance capital investments in the defense industry being developed in Lithuania.
Photo: BAE Systems Hägglunds