Estonia spent €70 million on ammunition it never received; defense minister resigns

Estonia’s defense minister, Hanno Pevkur, is resigning after the country paid €70 million in advance for ammunition that never arrived. Pevkur announced his decision in an interview with Estonia’s ETV and said he was taking political responsibility for the scandal.

He also told Delfi that he no longer had the confidence of the parliamentary majority. The controversy followed an investigation by Eesti Ekspress, which reported that Estonia had signed a 2024 procurement agreement for ammunition intended for Ukraine with Datasel, an Italy-registered company owned by India’s Neco Defence Munitions.

According to the newspaper, neither Datasel nor its owner had previously produced a single round of ammunition. Estonia’s State Audit Office had already issued a critical report about unclear use of defense funds. The State Defence Investment Centre, known as RKIK, signed two contracts with Datasel in August and October 2024. The first shipment was due in Ukraine in November, but Datasel later said problems had delayed delivery. Despite that, RKIK signed two more contracts with the company before the end of the year.

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The defense minister does not take part in contract negotiations or count socks and ammunition. He makes the major decisions on supporting Ukraine. Preparatory work, negotiations and finding partners are the responsibility of RKIK.

Estonia used European Union funding for the advance payments and has taken the case to court. Magnus-Valdemar Saar, who led RKIK at the time, said the centre did not make major procurement decisions without approval from the Defense Ministry’s leadership.

Pevkur said he had received the contracts from RKIK but had not studied them in detail, arguing that contract negotiations and partner searches belonged to the investment centre. “The defense minister does not take part in contract negotiations or count socks and ammunition. He makes the major decisions on supporting Ukraine. Preparatory work, negotiations and finding partners are the responsibility of RKIK.” Current RKIK head Elmar Vaher said the contracts should not have been signed, comparing the decision to hiring a company that had never built a house to construct one.

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If I start building a house and hire a company that has never built a house, there is reason to doubt whether the house will ever be completed.