Estonia to Use SAFE Funds for Air Defense, Ammunition, and Aid to Ukraine

Estonia will use funding from the European Union’s SAFE (Security Action for Europe) loan program to strengthen its air defense, purchase ammunition, and provide drone support to Ukraine.

ERR reported on this.

Under an agreement with the European Commission, Estonia will receive a long-term loan of up to €2.34 billion to strengthen its defense capabilities.

The SAFE program funds will be used to strengthen Estonia’s air defense system, procure military transport vehicles, artillery shells, and other ammunition.

Part of the funding will also be allocated to military assistance for Ukraine through the supply of unmanned aerial vehicles (UAVs), or drones.

Estonia will also maintain defense spending at more than 5% of GDP over the coming years.

The Ministry of Finance emphasized that the SAFE loan allows Estonia to raise funds on more favorable terms than through independent borrowing, as the European Union can secure financing at lower interest rates.

According to Kadri Peters, Undersecretary at the Ministry of Defence, the security situation in Europe requires a rapid strengthening of defense capabilities. As a result, Estonia will carry out large-scale defense procurement programs over the coming years.

Estonia submitted its final application for the SAFE loan to the European Commission in November 2025. All procurement contracts and deliveries under the program are scheduled to be completed by 2030.

Resumption of U.S. Arms Deliveries to Estonia

In July, Estonia and the United States reached an agreement to resume weapons deliveries in the coming months after shipments were temporarily suspended due to the war involving Iran. The only exception is the ATACMS tactical ballistic missile system, which remains excluded from the resumed deliveries.

In May, the United States warned its European allies of prolonged delays in weapons deliveries due to the depletion of its own stockpiles.

The delays primarily affected ammunition for HIMARS, missiles for NASAMS, and other critical weapons systems. At the time, the Pentagon said it was reviewing both new requests and existing contracts to ensure they aligned with current operational requirements.