Estonian Defense Minister resigns following Ukrainian ammunition procurement scandal
The audit found delays and faulty shells after Estonia paid €70 million upfront from EU funds for ammunition that had never been sold before.
- On Sept 2, Estonian Defense Minister Hanno Pevkur announced his resignation following revelations that the state paid 70 million euros—about $81.1 million—to Datasel for artillery shells that arrived faulty and unusable.
- The National Audit Office released a report on Aug 28 criticizing defense procurement after discovering the 2024 contract involved a firm that had never previously sold a single shell.
- Current RKIK Director General Elmar Vaher stated the contract should never have been signed, likening hiring the inexperienced firm to "building a house" without prior experience as Estonia seeks recovery.
- Prime Minister Kristen Michal ordered RKIK to prioritize recovering the funds through courts, while the Prosecutor launched a criminal investigation into procurement issues covered in reports from 2025 and 2026.
- Estonia continues to scale up defense capabilities, with defense expenditure planned to rise to 5.4% of GDP in 2026, reflecting a 42% budget growth amid regional security concerns.
156 Articles
156 Articles
Estonia defence minister resigns over botched Rs 700 crore deal with Indian-owned firm; all about the case
Estonia’s Defence Minister Hanno Pevkur has resigned after a €70 million (over Rs 768.50 crore) ammunition procurement deal intended to support Ukraine became embroiled in a scandal involving an Indian-owned company with no previous record of selling artillery shells. Pevkur, who had served as Estonia’s defence minister since 2022, announced his resignation on Wednesday, saying he was taking political responsibility for the controversial procure…
Questions were also raised in Estonia about this defense deal. The director of Estonia's Center for Defense Investments said that the deal should not have been made.
An Indian firm caught in arms scandal that toppled Estonian defence minister
An Indian company faces a European arms supply scandal involving Estonia. Datasel SRL, owned by Nagpur-based Neco Group, is accused of contract breach. The Estonian defence minister resigned amid allegations of failed ammunition deliveries. Datasel denies wrongdoing and has filed a counterclaim for damages. The dispute involves artillery shells allegedly meant for Ukraine.
Hanno Pevkur resigned on Wednesday evening following reports from the State Audit Office that his ministry had awarded a €70 million contract for the supply of ammunition to an Indian company with no previous experience in the sector. As reported by Politico, the order for the purchase of ammunition, financed by the European Peace Facility, was awarded in 2024 to Datasel S.R.L., a company registered in Italy and owned by the Indian company Neco …
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