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Estonia drops €500 million CV90 order, shifts funds to drones, air defense

Estonia is halting a €500 million procurement of new infantry fighting vehicles and redirecting the funds toward counter-drone systems, air defense, and unmanned capabilities, while simultaneously ordering three more HIMARS rocket launchers to expand its deep-strike arsenal. 

Defense Minister Hanno Pevkur announced on April 9, 2026, that Tallinn would suspend a planned joint acquisition of CV9035 MK IV IFVs, which had been explored alongside several NATO partners, including the Netherlands, Norway, and Lithuania. The existing CV90 fleet, acquired secondhand from the Netherlands in 2014, will instead have its service life extended by up to 10 years. 

Pevkur argued that the role of heavy armored vehicles on the battlefield is diminishing, citing lessons from the war in Ukraine. The decision followed updated military recommendations from the Commander of the Estonian Defence Forces, Lieutenant General Andrus Merilo. 

Counter-drone and air defense take priority 

The €500 million freed up by canceling the IFV program will be redirected toward counter-drone systems, air defense, surveillance, and unmanned capabilities. Pevkur said these areas would receive significant capability upgrades in the coming years, with the details to be finalized during the spring review of Estonia’s four-year defense investment plan.  

Though Pevkur did not specify which platforms the funds would go toward, Estonia already has a homegrown counter-drone contender gaining traction.  

Tallinn-based Frankenburg Technologies signed a framework agreement with Poland’s PGZ in March 2026 to mass-produce its Mark 1 anti-drone missile, with a planned output of up to 10,000 rounds per year at a new Polish facility. The Mark 1 was the first missile fired from the Airbus Bird of Prey interceptor drone during its maiden flight on March 30, 2026. 

The announcement came weeks after a drone struck the chimney of the Auvere power plant on March 25, 2026, after straying into Estonian airspace during a Ukrainian strike operation against Russian Baltic port infrastructure. The incident triggered Estonia’s national alert system and led to a temporary no-fly zone over the country’s east. 

The pivot is part of a broader Baltic push to strengthen air defense. Estonia and Latvia are due to take delivery of jointly procured IRIS-T SLM medium-range air defense systems from Germany’s Diehl Defence in 2026. 

Lithuania, which has also seen recurring drone spillovers since the beginning of Russia’s invasion of Ukraine, announced on April 13, 2026, that it had begun receiving a second NASAMS medium-range air defense battery from Norway’s Kongsberg, with initial operational capability expected by the end of 2026 and a third battery due in 2028.  

HIMARS, Chunmoo: fires-heavy force posture on Russia’s border 

Two days after the CV90 decision, the Estonian Centre for Defence Investments signed a contract with Lockheed Martin for three additional M142 HIMARS launchers, bringing the planned fleet from six to nine. The systems are due for delivery in 2027. The deal includes an approximately €9.40 million ($11 million) investment in Estonia’s defense industry to establish local HIMARS maintenance capacity, with Lockheed Martin linking the effort to similar initiatives in Latvia, Lithuania, Poland, and Finland. 

Estonia received its first six HIMARS launchers in spring 2025. The new order complements a separate €290 million contract signed in December 2025 for six South Korean K239 Chunmoo multiple launch rocket systems from Hanwha Aerospace, which offer a range of 300 kilometers with plans to extend it to 500. 

Lacking an air force of its own and with limited strategic depth along its 294-kilometer border with Russia, the country is increasingly embracing a fires-centric military posture focused on detection, denial, and long-range strike rather than armored maneuver. Pevkur summed up this shift of doctrine in a December 2025 interview with Le Grand Continent

 “Against Putin’s Russia, Estonia will be a small bee capable of paralyzing an elephant. We need to be more precise, faster, and have greater range.” 

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