Full Breakdown
Estonia’s Defence Minister Resigns Amid €70 Million Ukraine Ammunition Procurement Scandal
9/5/2026, 12:03:24 AM
Core Event
On September 2, Defence Minister Hanno Pevkur announced his resignation after an audit showed Estonia’s Ministry of Defence had advanced roughly €70 million to purchase artillery shells for Ukraine using EU European Peace Facility (EPF) funds. The contracts were signed with Datasel S.R.L., an Italian-registered firm owned by India’s Neco Defence Munitions. Audits found the supplier had no prior record of producing artillery ammunition, deliveries were delayed, and the shells that arrived were deemed unusable.
Background & Context
Since Russia’s 2022 invasion, Estonia has raised defence spending to 5 % of GDP and has funneled about €500 million in equipment to Kyiv. The Centre for Defence Investments (ECDI) acted as the procurement agency, using EPF money to secure the shells in response to Ukraine’s ammunition shortages.
Timeline
- August 2024 – First contract with Datasel; €15 million advance paid.
- October 2024 – Second contract; over €10 million advance paid.
- Late 2024 – Additional contracts bring total advances to about €70 million.
- 28 August – National Audit Office releases audit highlighting irregularities in fund use and asset accounting.
- 2 September – Pevkur resigns, citing political responsibility.
- 14 September (scheduled) – Parliament expected to appoint a new defence minister.
- 2025 – Contracts terminated; dispute moved to the European Court of Arbitration in Strasbourg.
Data & Statistics
- €70 million: total advance payments from EPF to Datasel (government claim).
- €59 million: amount Datasel acknowledges receiving (company claim).
- Four contracts signed between August and late 2024.
Official Statements & Responses
- Hanno Pevkur said the minister does not negotiate individual contracts and accepted responsibility for the sector.
- Elmar Vaher, director general of ECDI, called the contract a mistake, likening it to hiring a builder with no construction experience.
- Prime Minister Kristen Michal said he does not believe Pevkur was personally at fault for the procurement decisions.
Conflicting Reports & Gaps
- Payment totals differ: the government cites €70 million paid, while Datasel reports €59 million received; the remainder is unaccounted for.
- Quality of ammunition is disputed: Estonian officials say the shells failed standards, whereas Datasel’s legal team asserts they met contractual specifications.
- Responsibility remains unclear. The audit criticises the Defence Forces and ECDI, but no definitive attribution of wrongdoing has been established.
What’s Next
- A new defence minister is expected to be appointed when parliament reconvenes on September 14.
- Estonia will continue arbitration in Strasbourg to recover the disputed funds.
- Ongoing criminal investigations by the Prosecutor’s Office may lead to further legal actions against officials involved in the procurement.
