The U.S. Naval Sea Systems Command (NAVSEA) signed a $45.5 million contract with Kongsberg Defence and Aerospace on March 13, 2026. The contract is aimed at enhancing Latvia’s coastal defense capabilities. This contract is being carried out under the Foreign Military Sales (FMS) program. The agreement covers the supply of Latvia’s Naval Strike Missile (NSM) Coastal Defense System.
Contract Value and Options
The initial contract value is set at $45,544,458. With the additional options included in the agreement, the total amount could reach $56.3 million. The main project schedule is set to be completed by July 2030. If all options are exercised, the timeline extends to November 2031. NAVSEA, based in Washington, D.C., is overseeing the execution of the contract.
Geographical Distribution of Work
In terms of geographic work share, Norway, home to Kongsberg—the system’s main manufacturer—accounts for 63% of the work. Finland (Kangasala) and Italy (Turin) contribute 9% each to the production process. Meanwhile, the remaining 19% is shared among Denmark (Hvidovre), the United Kingdom (Cambridge), and other global locations.
Regional Security and Funding
Latvia’s NSM program is part of a strategy to strengthen NATO’s maritime deterrence in the Baltic Sea. Approximately 70% of the total $105 million investment is financed through U.S. Foreign Military Financing (FMF) support. The remainder is covered by Latvia’s own resources.
With a range exceeding 185 kilometers, the system allows precise strikes against both sea and land targets. Through this acquisition, Latvia joins other NSM-operating allies such as Poland, Romania, and Norway. Thus, Latvia contributes to the security of NATO’s northeastern flank.
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Source:C4Defence
