Estonian Defence Minister Hanno Pevkur has announced his resignation following a procurement scandal involving a €70 million payment to an Indian-run company for artillery shells intended for Ukraine, according to reports.
The company, Datasel SRL, was contracted to supply ammunition for the Ukrainian military. However, the shipment was reportedly delayed, and ammunition inspected in 2025 was found to be defective. None of the shells were ultimately sent to Ukraine.
Pevkur announced his resignation on Estonian public broadcaster ERR, saying that a political leader must take responsibility for issues within their ministry even when there is no personal responsibility.
He said the defence ministry receives contracts but does not handle detailed contract negotiations, which are the responsibility of Estonia’s Centre for Defence Investments (RKIK).
Datasel SRL has challenged Estonia’s decision to terminate the contracts and is reportedly suing the country. The company claims it delivered the majority of the munitions, worth around €59 million, and argues that it would have fulfilled its obligations had Estonia not ended the agreement.
The company has also disputed the reasons given by Estonia for terminating the contracts, describing the decision as contradictory and illogical.
The controversy has raised questions over defence procurement procedures as Estonia increases military spending and strengthens its defence capabilities amid heightened security concerns in Europe.
