Finnish VR headsets used to train Ukrainian troops

Finnish defence technology company Varjo is supplying its virtual reality headsets to train Ukrainian soldiers, including Leopard 2 tank crews and drone defence operators, Yle reports.

The contract, part of a €7.2 million training programme, marks a significant expansion for the Helsinki-based firm, which now derives nearly 80 percent of its revenue from defence and aviation sectors. Varjo’s VR systems are already integrated into Ukraine’s F-16 fighter pilot training and used in over 120 programmes across NATO countries.

CEO Timo Toikkanen told Yle that frontline demand for equipment has driven the need for virtual alternatives. “Physical hardware is tied up in combat, so advanced virtual solutions are essential for training without pulling resources from the front,” he said. Feedback on the Leopard 2 simulations—covering vehicle operation and crew coordination—has been positive, he added.

The company’s shift toward software has accelerated growth, with its programming and service division now accounting for 35 percent of total revenue after tripling in size last year. Varjo reported a 16 percent revenue increase to €23 million in 2023, narrowing its operating loss to under €5 million.

A €44 million R&D project, backed by a €12 million grant from Business Finland, aims to advance mixed-reality training systems for defence clients. Toikkanen noted rising global demand for drone countermeasure simulators and complex weapons training as militaries modernise.

Founded a decade ago, Varjo has long served aerospace and defence industries, including a 2020 partnership with Boeing’s space programme. Its XR-4 headsets blend physical and virtual environments, enabling realistic simulations from tank cockpits to fighter jets.