Estonia Defence Minister Quits Over Controversial Ukraine Ammunition Deal

Estonia’s Defence Minister Hanno Pevkur has resigned, taking political responsibility following an audit that highlighted serious shortcomings in the country’s defence spending and procurement procedures. The controversy centres on a €70 million deal signed in 2024 to procure artillery shells for Ukraine amid Kyiv’s ammunition shortage. The deal involved Italy-registered Datasel SRL, which had been acquired by India-based Neco Defence Munitions earlier that year. The funds were paid in advance through the European Union’s European Peace Facility.

The ammunition deliveries were reportedly delayed, and Estonia later raised concerns over the quality of some shells received. The country subsequently moved to terminate the contracts and sought recovery of the money, while Datasel rejected Estonia’s allegations and disputed the basis for the termination. The dispute has moved to arbitration. Estonia’s National Audit Office also flagged broader weaknesses in defence contract management and accounting. Pevkur said he was accepting political responsibility for the defence sector and stepped down from his post.