• Source:JND
HighLights
  1. Estonian Defence Minister Hanno Pevkur resigned over procurement issues.
  2. Controversy involved €70M ammunition contract for Ukraine.
  3. Contract with Datasel SRL faced delays and defective deliveries.

Estonian Defence Minister Hanno Pevkur has resigned taking political responsibility for problems in the country’s defence procurement system. His resignation follows a critical report by Estonia’s National Audit Office and a controversy over a 70 million euros (approximately Rs 7,69,03,40,000) ammunition contract meant to support Ukraine.

Why Did Pevkur Resign?

Pevkur announced his resignation on Thursday, saying that Estonia’s national security and defence were a shared responsibility and that he needed to take political responsibility for problems within his ministry. He served as Estonia’s defence minister from July 2022 and was the country’s longest-serving cabinet minister. Estonia’s Defence Ministry also confirmed his resignation.

“Defence Minister Hanno Pevkur has resigned. Thank you for leading Estonia’s national defence and for your steadfast support for Ukraine. Hanno Pevkur served as Minister of Defence from 18 July 2022. During this time, Europe’s security environment has changed significantly, and Estonia’s national defence has undergone a profound transformation. Just one example: our defence spending has risen from 2% to more than 5% of GDP,” the MoD wrote on X.

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What’s The Matter?

The controversy involves contracts signed in 2024 by Estonia’s Centre for Defence Investments (ECDI) to buy artillery shells for Ukraine. The deal was reportedly worth about 70 million euros, with the money coming from the European Union’s European Peace Facility (EPF). Estonia paid the money in advance at a time when Ukraine was facing a serious shortage of ammunition during its war with Russia.

The contract was awarded to Datasel SRL, an Italian-registered company that had been acquired in March 2024 by India’s Neco Defence Munitions, a subsidiary of the Nagpur-based Jayaswal NECO Group. However, questions were later raised about the company’s ability to fulfil such a large ammunition order.

According to local media reports, Datasel and its Indian parent company had no previous track record of manufacturing or supplying artillery shells when the contract was awarded, which led to significant delays on deliveries. Moreover, Estonian officials later raised concerns about the quality and safety of some ammunition that was delivered.

Contract Cancellation And Legal Action

The events led to Estonia eventually terminating the contract in 2025 and initiating legal proceedings to recover the money. The dispute was taken to European arbitration, where Datasel rejected parts of Estonia’s account of what happened. According to reports cited by Estonia’s public broadcaster ERR, the company said it supplied a significant quantity of goods and submitted invoices worth around 58 million euros. The Telegraph reported that ammunition eventually received in 2025 was found to be defective with none of it being sent to Ukraine.

The incident drew criticism that Estonia entered a major ammunition contract with a company that had little or no previous experience in producing artillery shells. Head of Estonia’s Centre for Defence Investments, Elmar Vaher also acknowledged the concern.

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