Estonia has halted a 500-million-euro ($589 million) program to replace its infantry fighting vehicles (IFVs), prioritizing drones, air defense, and uncrewed systems instead.
Defense Minister Hanno Pevkur cited lessons from Ukraine’s war with Russia, the rising costs of combat vehicles, and the decreasing dominance of heavy equipment on the battlefield as factors that have led to the program’s suspension, local news outlet ERR reported.
The funds will instead be used to prioritize strengthening the military’s firepower and mobility and improving its air defense, particularly against drone threats.
Meanwhile, Tallinn’s CV90 IFV fleet will undergo a service life extension by up to 10 years.
These measures are deemed more cost-efficient than purchasing new combat vehicles, according to Pevkur.
He also highlighted the quickly evolving nature of defense technology, citing an example of a laser weapon that was fielded in Israel for the first time, as a reason to keep future investments and procurements flexible.
The program’s suspension will be finalized during the country’s annual spring review of its four-year defense budget, as per Breaking Defense.
Drone Defense
Estonia opened its first aerial drone military training center in 2025 and launched a tactical drone course for high school students, supporting national security and the local defense industry.
This year, Estonian firm Frankenburg Technologies teamed with South Korea’s Hanwha Aerospace to jointly develop counter-drone systems for ground platforms.
The Baltic country also took delivery of BLAZE autonomous interceptor drones and ordered Saab’s Giraffe 1X radars, boosting its drone defense capabilities.
