Story perspectives

Pevkur Resigns Over €70M Ammunition Deal Responsibility

9/5/2026

Summary

Story summary

Defence Minister Hanno Pevkur resigned, accepting political responsibility for the €70 million ammunition deal.
The EU-funded deal awarded contracts to Datasel SRL, owned by Nagpur-based Neco Defence Munitions of the Jayaswal NECO Group.
Estonia terminated the contracts in November 2025 due to delayed, insufficiently tested shipments.
Estonia began arbitration in Strasbourg and opened a criminal investigation.
Opposition prepared a no-confidence motion as the ruling coalition lost its parliamentary majority in August 2026.

History

Historical Context

After the 2003 Pentagon uncovered a $2.5 billion ammunition scandal—prompting Rumsfeld’s probe and 15 % cost overruns at Lockheed Martin and Boeing—the same pattern reappeared in Estonia’s 2025-26 €70 million Neco Defence deal that forced a minister’s resignation. Past scandals such as the 1986 Ill Wind investigation and the 2005 Cunningham bribery case led to the 1988 Procurement Integrity Act, shaping today’s EU-NATO drive for tighter defense-procurement oversight.

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Story summary

Defence Minister Hanno Pevkur resigned, accepting political responsibility for the €70 million ammunition deal.
The EU-funded deal awarded contracts to Datasel SRL, owned by Nagpur-based Neco Defence Munitions of the Jayaswal NECO Group.
Estonia terminated the contracts in November 2025 due to delayed, insufficiently tested shipments.
Estonia began arbitration in Strasbourg and opened a criminal investigation.
Opposition prepared a no-confidence motion as the ruling coalition lost its parliamentary majority in August 2026.

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