Estonia’s defence minister Hanno Pevkur has resigned after a 70 million euros (over Rs 768.50 crore) ammunition deal meant to assist Ukraine unravelled right into a procurement scandal involving an Indian-owned firm that had no earlier document of promoting artillery shells. Pevkur, who has served as defence minister since 2022, introduced his resignation on Wednesday, saying he was taking accountability for the defence deal after a collection of essential findings by Estonia’s Nationwide Audit Workplace.
“Estonian safety isn’t a one-man venture. It’s our joint accountability. That’s the reason I have to take political accountability for all the defence discipline as we speak and go on the baton of the minister of defence to the prime minister at an appropriate time,” Pevkur stated in a social media publish.
The problem dates again to contracts signed in 2024 by Estonia’s Centre for Defence Investments with Datasel SRL, an organization registered in Italy that had been acquired by India’s Neco Defence Munitions earlier that yr. The deal was meant to safe artillery shells for Ukraine at a time when Kyiv was dealing with acute ammunition shortages.
In line with Estonian public broadcaster ERR and experiences by Eesti Ekspress and Postimees, Estonia used cash from the EU’s European Peace Facility for the procurement and paid the corporate hundreds of thousands of euros upfront, with the full advance funds finally reaching about €70 million.
70 MILLION EUROS PAID, NO AMMUNITION DELIVERED
Estonia signed the primary contract in August 2024 and paid about €15 million upfront. It signed one other deal in October and made an additional advance cost of greater than €10 million. By the tip of the yr, a number of extra contracts had pushed the full quantity paid prematurely to round €70 million. The ammunition was initially anticipated to succeed in Ukraine inside months, however deliveries have been repeatedly delayed due to reported manufacturing issues. When ammunition was finally acquired in 2025, Eesti Ekspress reported that it failed to satisfy high quality necessities.
Estonia has since taken the dispute to the European Arbitration and Mediation Centre in Strasbourg, France, which handles industrial disputes, because it seeks to get better the €70 million paid for the ammunition.
Elmar Vaher, director common of the Centre for Defence Investments, advised Eesti Ekspress that the deal shouldn’t have been signed.
“For my part, we should always not have signed a contract with them,” Vaher stated. “If I begin constructing a home and rent an organization that has by no means constructed homes earlier than, there’s a doubt that the home won’t be completed.”
AUDIT RAISES QUESTIONS OVER DEFENCE SPENDING
Pevkur’s resignation additionally follows criticism from Estonia’s Nationwide Audit Workplace over the administration of defence funds and army procurement. In line with ERR, an audit launched on August 28 flagged issues in the usage of funds and accounting of property inside the defence ministry, whereas related considerations had been raised beforehand.
The watchdog warned that Estonia might finally need to cowl about €70 million from its personal state finances if the EU funding can’t be recovered.
Nevertheless, Estonia’s minister defended the division of obligations inside the ministry, saying the defence minister doesn’t personally oversee particular person procurement contracts.
“Though the minister doesn’t depend socks and ammunition or conduct contract negotiations, the Nationwide Audit Workplace’s criticisms, primarily in regards to the actions of the protection forces and the Heart for Protection Investments, elevate the query of political accountability,” Pevkur stated.
The European Fee has additionally been in touch with Estonian authorities over the disputed funding. Fee spokesperson Christian Wigand stated Brussels had safeguards and restoration procedures to make sure EU taxpayers’ cash was correctly used.
ESTONIAN PM SAYS PEVKUR NOT PERSONALLY AT FAULT
Estonian Prime Minister Kristen Michal had beforehand stated he didn’t see private fault on Pevkur’s half however acknowledged that political accountability might nonetheless apply. Nevertheless, Pevkur stated his choice got here with the conviction that Estonia had made the best selections to strengthen its nationwide defence. He additionally pointed to the nation’s sharp enhance in defence spending since Russia’s full-scale invasion of Ukraine in 2022.
“Estonia is best protected than ever earlier than,” he wrote on Fb, including that the nation should proceed supporting Ukraine as a result of doing so additionally contributes to Estonia’s personal safety.
Estonia, a small nation of about 1.2 million individuals, is a part of each the EU and Nato and shares a border with Russia. Moscow’s warfare in Ukraine has confirmed safety considerations within the Baltic nation, the place the battle is seen as a direct risk. Estonian authorities has been a robust supporter of Ukraine.
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