Estonian Defense Minister resigns following Ukrainian ammunition procurement scandal
The National Audit Office found advance payments of about €70 million for shells that were incomplete and never reached Ukraine, officials said.
- On Wednesday, Estonian Defense Minister Hanno Pevkur announced his resignation, accepting political responsibility following a National Audit Office report revealing a failed €70 million artillery procurement intended for Ukraine.
- In 2024, the Estonian Centre for Defence Investments contracted Italian-registered Datasel S.R.L. using European Peace Facility funding, despite the firm having no prior history of producing artillery shells.
- Shipments arriving in 2025 were deemed faulty, and the National Audit Office criticized RKIK's failure to verify the supplier's capabilities before authorizing approximately €59 million in advance payments.
- Estonia terminated the agreements and filed a case at the European Court of Arbitration in Strasbourg to recover funds, while the Prosecutor's Office opened a criminal investigation into the procurement process.
- The scandal exposes systemic weaknesses in defense contracting and asset management, prompting calls for Estonia to strengthen procurement oversight and transparency to prevent future failures in military spending.
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Indian Firm at Heart of Estonian Arms Deal Controversy Denies Defence Links
Defence officials clarified that NECO Defence, linked to an Estonian arms deal controversy, has no connections with India's Ministry of Defence or armed forces. The company, part of a steel manufacturing group, may supply state police and holds a Romanian facility contracted for shell supplies to Estonia, subsequently delivered to Ukraine.
Indian Firm Linked To Estonia Ammunition Deal Has No Dealings With Defence Ministry
NECO Defence is part of a Nagpur-based group of companies involved in the steel manufacturing business. They added that the company recently acquired Datasel, a small Italian firm involved in the manufacture of small arms and ammunition
In Estonia, there is a growing scandal surrounding the Estonian purchase of ammunition for Ukraine, following which Defence Minister Hanno Pevkur announced his resignation, which is reported to the local media.
The Ukraine Money Pit - LewRockwell
—– Writes Martin Armstrong: Estonia’s Defence Minister Hanno Pevkur has resigned after a €70 million ammunition deal intended to supply Ukraine blew up into a procurement scandal. Estonia agreed to purchase artillery shells from Datasel, an Italian-registered company owned by India’s Neco Defense Munitions, despite the companies having no established history of selling artillery shells. Millions were paid in advance, deliveries ran into problems…
Intelligence services are predicting an escalation on the eastern border of Nato. However, there is chaos in the Estonian Ministry of Defence. The man who prepared the country for the emergency draws the consequences.
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