Tallinn: After a Rs 770 crore ammunition deal with an Indian firm became embroiled in procurement scandal, Estonian Defence Minister Hanno Pevkur resigned on Wednesday. According to reports, the deal was to support Ukraine.
Pevkur said he was taking political responsibility for problems within his ministry. Estonia’s National Audit Office had criticised the defence spending and procurement.
The controversy involves Datasel SRL, an Italy-based company acquired by India’s Neco Defence Munitions in 2024. Estonia’s Centre for Defence Investments signed contracts with the company. The deal was to procure artillery shells for Ukraine amid Kyiv’s ammunition shortages, reported News18.
According to Estonia’s public broadcaster ERR and reports by Eesti Ekspress and Postimees, Estonia paid around €70 million upfront. This money came from the EU’s European Peace Facility.
Datasel had “not previously produced or sold a single shell”, reported The Telegraph. Though the ammunition was expected to reach Ukraine within months, deliveries, according to reports, were repeatedly delayed.
The ammunition was finally received in 2025 but was found to be defective. Consequently, “none were sent to Ukraine”.
Estonia has since sought to recover the money. It has taken the dispute to arbitration.
ERR, citing Eesti Ekspress, reported that Datasel disputes Estonia’s claims. The company said it supplied a significant quantity of goods and submitted invoices worth about €58 million. It also refutes claims that there was quality problem.
Meanwhile, Pevkur said he was not personally responsible for negotiating individual contracts but accepted political responsibility for the defence sector.
“A leader must have both the courage and the stature to take responsibility as a matter of political responsibility, even when there is no personal responsibility,” he said, ERR reported.
Pevkur also said he had not read the contracts. He claimed that the detailed procurement work was handled by the Centre for Defence Investments.