Estonia has opted to suspend its 500-million-euro ($589 million) infantry fighting vehicle (IFV) replacement program, redirecting focus toward drones, air defense, and uncrewed systems. Defense Minister Hanno Pevkur pointed to lessons from the Ukraine conflict, escalating costs of armored platforms, and the declining battlefield dominance of heavy vehicles as key reasons behind the decision, according to ERR.
Instead of procuring new IFVs, the allocated funds will be channeled into enhancing firepower, improving mobility, and strengthening air defense—particularly against drone threats. Meanwhile, Estonia’s existing CV90 fleet will undergo upgrades to extend its operational lifespan by up to a decade.
According to Pevkur, these measures offer a more cost-effective alternative to acquiring new combat vehicles. He also emphasized the rapid pace of technological change in modern warfare, referencing the recent operational deployment of laser-based weapon systems in Israel as an example of why future investments must remain adaptable.
The final decision to suspend the program will be confirmed during Estonia’s annual spring review of its four-year defense budget.
On the drone front, Estonia continues to expand its capabilities. The country inaugurated its first military drone training center in 2025 and introduced a tactical drone program for high school students to support both national security and domestic industry growth.
Additionally, Estonian company Frankenburg Technologies has partnered with Hanwha Aerospace to co-develop counter-drone systems for ground platforms. Estonia has also taken delivery of BLAZE autonomous interceptor drones and procured Saab’s Giraffe 1X radar systems, further strengthening its counter-drone defenses.
