Lithuania signed a new agreement with Luxembourg aimed at strengthening military satellite communications, with Luxembourg committing €2.5mn towards the initiative, the Lithuanian defence ministry said in a statement on June 10.

The agreement reflects a broader trend among European countries seeking to expand access to secure communications and space-based services amid a deteriorating security environment.

Luxembourg has emerged as one of Europe's leading centres for commercial space activity, hosting a growing number of satellite and technology companies and attracting major international operators through supportive regulation and investment policies.

For Lithuania, the partnership offers access to expertise in a strategically important sector while helping to bolster military communications infrastructure as defence requirements continue to evolve.

The deal was concluded during a meeting in Luxembourg between Lithuanian Defence Minister Robertas Kaunas and Luxembourg's Defence Minister Yuriko Backes. The talks covered Nato deterrence measures, European security policy, defence cooperation and opportunities in the rapidly expanding space sector.

According to Lithuania's Defence Ministry, the agreement will support the development of satellite communications capabilities for the Lithuanian Armed Forces, an area that has gained increasing importance as modern militaries rely more heavily on space-based technologies.

Kaunas said lessons from Russia's war against Ukraine had highlighted the growing role of satellite systems on the battlefield and in military planning.

"We value Luxembourg's leadership in the space sector and the opportunity to jointly develop capabilities that will contribute to the efficiency and resilience of the Lithuanian Armed Forces," he said, BNS reported.

The ministers also discussed how future European Union investment in space-related projects could be directed towards strengthening national security and defence capabilities across member states.