Estonia Minister Quits Over €70m Ukraine Arms Deal
Estonia’s Defence Minister Hanno Pevkur has resigned after a controversial €70 million ammunition procurement for Ukraine involving an Indian-owned company became embroiled in disputes over delivery, quality and financial oversight. Pevkur said he was accepting political responsibility for broader failures in the country’s defence procurement system.
€70 Million Paid Upfront for Ukraine Ammunition
The controversy centres on contracts signed in 2024 by Estonia’s Centre for Defence Investments with Datasel S.R.L., an Italian-registered company acquired by India’s Neco Defence Munitions.
Estonia made advance payments totalling nearly €70 million under multiple contracts intended to secure artillery ammunition for Ukraine.
The procurement later came under scrutiny because Datasel and its Indian parent reportedly had no established previous record of selling artillery shells when the agreements were signed.
Estonia and Datasel Dispute Deliveries and Quality
Estonian authorities say deliveries were delayed and that ammunition inspected under the contracts failed to meet required standards. The contracts were subsequently terminated, leaving between €60 million and €70 million tied up in a legal dispute.
Datasel strongly contests Estonia’s account.
The company says it supplied and invoiced approximately €58 million worth of material against around €59 million in advance payments and denies that contractual inspections established quality failures.
It has also blamed regulatory delays and Estonia’s refusal to accept some material for the breakdown of the agreements.
Pevkur Takes Political Responsibility
The dispute has moved to arbitration, while Estonia is working with European authorities over recovery of funds originally linked to EU support for Ukraine.
Pevkur said he was not personally involved in negotiating individual procurement contracts but accepted responsibility as defence minister following criticism of financial controls and contract management.
No finding of fraud or criminal wrongdoing against Neco Defence Munitions or Datasel has been established, and the contractual dispute remains unresolved.
