Hanno Pevkur had been Estonia’s defense minister since 2022. He resigned, taking responsibility for the agreement.
Estonia’s Defence Minister Hanno Pevkur has resigned. The reason for his resignation is a deal worth approximately ₹7.68 crore made for Ukraine.
Under the agreement, an Italian firm linked to an Indian company was awarded a contract to supply ammunition. It is alleged that the company had no experience in manufacturing or selling artillery shells. Despite this, it was given a major contract and a substantial amount was paid in advance.
Four agreements were signed with the company
In 2024, Estonia’s Centre for Defence Investment signed four agreements with Datasel SRL for the purchase of artillery shells. The company is registered in Italy. It was acquired by the Indian company Neco Defence Munitions in March 2024.
The first contract was signed in August 2024, under which an advance of approximately €15 million was paid. This was followed by a second contract and then two more. Across all four deals, the advance payments reached around €70 million.
The shells were to reach Ukraine by November 2024
The first batch of ammunition was supposed to reach Ukraine in November 2024, but Datasel delayed it. Questions were also raised about the supplies that arrived later.
According to officials, some consignments were incomplete and lacked the components necessary to fire the shells. These reportedly included fuses, propellant charges, and primers. Therefore, Estonia did not accept some of the supplies.
Company rejects the allegations
Datasel has denied Estonia’s allegations. The company says it prepared a large quantity of supplies and also submitted invoices for their delivery.
The company also said that the delays in delivery were caused by factors such as delays in obtaining approvals from different countries and receiving the necessary documents.
Estonia’s ₹768 crore stuck
Estonia had paid around ₹768 crore for this deal. It is now trying to recover this amount. The matter concerning the contract has reached arbitration. If the money is not recovered, Estonia could face a financial burden equivalent to this amount. The European Commission is also in talks with Estonia بشأن this matter.
Money came from EU funds
The money used in this deal came from the European Union’s European Peace Facility (EPF). This fund is being used to provide military assistance to Ukraine.
The question now is what will happen to this fund if Estonia is unable to recover the money from the company. The European Commission is in contact with Estonian officials بشأن this matter.
Minister says- I am responsible for every deal
Defense Minister Hanno Pevkur said that a minister does not personally negotiate the contract for every arms purchase. He also said that he had not personally read the contract in question.
However, according to them, the political responsibility for the ministry’s work lies with the defense minister. That is why they decided to resign.
Investigation also raises questions about the procurement process
Estonia’s National Audit Office has raised serious questions about the deal. One major issue in the investigation is how a company with no prior experience in supplying artillery shells was selected for such a large defense contract.
In other words, the controversy is not just about whether the shells arrived on time. Questions have also been raised about how the company was selected and why such a large amount was paid in advance.
