Estonian defence minister resigns over botched €70 million ammunition deal with Indian firm

Mangalore Today News Network

New Delhi, Sep 4, 2026: Estonian Defence Minister Hanno Pevkur has resigned amid controversy over a €70 million ammunition procurement deal intended to support Ukraine.

Pevkur said he was stepping down to take responsibility following a critical report by Estonia’s National Audit Office, according to reports.

Confirming his resignation in a post on X, Estonia’s Ministry of Defence thanked Pevkur for his leadership and support for Ukraine. Pevkur had served as defence minister since July 18, 2022.

The controversy centres on contracts signed in 2024 by the Estonian Centre for Defence Investments. The contracts were awarded to Datasel SRL, an Italian company that was acquired by India-based Neco Defence Munitions in 2024.

Under the deal, Estonia used around €70 million in European Union funds to procure artillery shells for Ukraine, which was facing severe ammunition shortages amid its war with Russia.

However, Estonian authorities later raised concerns about the procurement process. Neither Datasel nor Neco had a prior track record of manufacturing or supplying artillery shells, according to reports. The Estonian procurement agency subsequently terminated the contract in 2025.

Estonia has since initiated legal proceedings to recover the funds and launched a criminal investigation into the procurement process.

Neco and Datasel have rejected allegations concerning the quality of the ammunition. The companies argued that the dispute arose from changes in European regulations and funding arrangements.

The company has maintained that it delivered ammunition and other goods worth €58 million after receiving €59 million in advance payments.