Hanno Pevkur took political duty after an EU-funded deal to provide 155mm artillery shells to Ukraine was terminated over delays and alleged high quality issues, whereas the Indian-owned agency concerned has disputed the allegations
Estonian Defence Minister Hanno Pevkur resigned on Wednesday, taking political duty for a controversial €70 million (round Rs 770 crore) arms procurement deal meant to provide 155mm artillery ammunition to Ukraine, as reported by the nation’s public broadcaster ERR.
The deal, funded via the European Union’s European Peace Facility (EPF), was awarded to an Italian-registered firm owned by an Indian defence agency. It later grew to become the centre of a political and authorized dispute after deliveries had been delayed and issues had been raised over the standard of the ammunition.
Pevkur, who had served as Estonia’s defence minister since July 2022 and was the nation’s longest-serving cupboard minister, introduced his resignation following a vital report by Estonia’s Nationwide Audit Workplace.
“Estonian safety just isn’t a one-man venture. It’s our joint duty. That’s the reason I need to take political duty for the whole defence discipline in the present day,” Pevkur mentioned in a social media post saying his resolution.
The Defence Ministry too confirmed his exit.
What went improper with the deal?
The controversy dates again to contracts signed in 2024 by the Estonian Centre for Defence Investments (ECDI). The contracts had been awarded to Datasel SRL, an Italian firm that had been acquired in March 2024 by Nagpur-based Neco Defence Munitions, a subsidiary of Jayaswal NECO Group.
Extra from WorldEstonia paid round €70 million upfront from EU funds to safe artillery shells at a time when Ukraine was going through a extreme scarcity of ammunition due to its conflict with Russia.
Nevertheless, Estonian authorities later raised a number of issues concerning the procurement.
Neither Datasel nor its Indian father or mother firm had a earlier document of producing or supplying artillery shells when the contract was awarded. Deliveries had been subsequently delayed, whereas a few of the preliminary batches equipped reportedly failed to fulfill required high quality and security requirements.
The Estonian procurement company terminated the contract in 2025 and commenced authorized proceedings at a European arbitration court docket to get better the cash. Estonia’s Prosecutor’s Workplace additionally opened a felony investigation into the procurement course of.
Indian agency disputes allegations
Jayaswal NECO and Datasel have rejected allegations of wrongdoing. The businesses argue that the dispute was linked to modifications in European rules and funding preparations slightly than failures within the high quality of the ammunition.
Datasel has filed a counterclaim in opposition to the Estonian authorities, looking for damages operating into tens of hundreds of thousands of euros over what it describes because the untimely termination of the contract.
Firm executives additionally mentioned Datasel had delivered and invoiced items value €58 million after receiving €59 million prematurely funds. In line with the corporate, the products had been inspected by Estonian officers earlier than the federal government halted the contract.
The corporate additional claimed that Estonia cancelled the settlement after saying that “EU funds had lapsed”, leaving a big amount of accomplished stock unused.
Strain piles on Pevkur
Pevkur’s resignation comes as Estonia’s authorities faces a wider political problem. The ruling coalition misplaced its parliamentary majority in August 2026, whereas opposition lawmakers had been making ready a no-confidence movement in opposition to the defence minister following questions raised by a parliamentary committee.
The federal government is now working with the European Fee to get better the funds concerned within the failed procurement.
