Executive Summary
Defense Industry Protection Law: CFIUS-model screening framework. Components: mandatory review of foreign investment in defense-relevant companies (100+ designated), technology transfer controls, supply chain security assessment, blocking authority for hostile acquisitions, mitigation requirements (local production, data protection), and enforcement mechanisms. Scope: weapons, ammunition, electronics, cyber, and dual-use manufacturers.
In short: 100+ companies under protection; Mandatory investment screening; Technology transfer controls
The Problem
Defense industry vulnerability: strategic companies subject to foreign acquisition without security review. Estonian intelligence warning: 'Russian-linked investors attempted to acquire Baltic defense-relevant companies. Shell companies, third-country fronts. Without screening, they succeed.' Lithuanian gap: no mandatory foreign investment screening for defense sector. Technology transfer not controlled. Supply chain dependencies not assessed. One hostile acquisition can compromise entire capability area. Without protection law, Lithuania's defense industrial base is for sale.