Estonia has decided to pause its €500 million ($589 million) program to replace its infantry fighting vehicles, shifting its investment priorities toward drones, air defense systems, and uncrewed technologies. Defense Minister Hanno Pevkur cited insights from the war in Ukraine, rising procurement costs, and the diminishing effectiveness of heavy armored systems in modern combat as driving factors behind the move.
The funding originally earmarked for new IFVs will now be redirected to boost military firepower, enhance operational mobility, and reinforce air defense capabilities, particularly against drone-based threats. At the same time, Estonia will extend the service life of its CV90 IFV fleet by up to 10 years through modernization efforts.
Pevkur noted that these steps are more economically viable than investing in new armored platforms and stressed the importance of maintaining flexibility in defense spending amid rapid technological advancements. He referenced the recent introduction of laser weapon systems in Israel as an indicator of how quickly battlefield technologies are evolving.
The suspension of the IFV program is expected to be formalized during Estonia’s upcoming spring review of its four-year defense budget, as reported by Breaking Defense.
Estonia is simultaneously accelerating its drone defense initiatives. In 2025, the country launched its first aerial drone military training center and introduced a tactical drone curriculum for high school students, aimed at strengthening both defense readiness and the local industrial base.
Furthermore, Frankenburg Technologies has joined forces with Hanwha Aerospace to develop counter-drone solutions for ground forces. The country has also integrated BLAZE autonomous interceptor drones and ordered Saab’s Giraffe 1X radars, significantly enhancing its ability to counter aerial threats.
