Estonia’s Defence Minister Hanno Pevkur has resigned after a €70 million ($81.1 million) deal to buy artillery ammunition for Ukraine came under scrutiny over procurement failures.
Pevkur, who has served as defence minister since 2022, addressed the scandal while announcing his resignation on public broadcaster ETV on September 2.
“A leader must have the strength and courage to take responsibility,” Pevkur said in a Facebook post, adding that findings by the National Audit Office had raised questions over political responsibility.
The National Audit Office published a report on August 28 criticising defence procurements made by the Defence Ministry in recent years. The report warned that Estonia could ultimately have to cover the €70 million cost from its state budget.
According to Eesti Ekspress, an Estonian daily, Estonia signed the ammunition contract in 2024 with Datasel S.R.L., an Italian-registered company owned by Indian firm Neco Defense Munitions.
The contract was intended to supply artillery shells to Ukraine and was financed through the EU’s European Peace Facility.
Only some defective ammunition arrived
The Estonian Centre for Defence Investments (RKIK) made advance payments to Datasel, but shipments were repeatedly delayed and did not arrive for months.
A shipment eventually arrived in 2025, but Eesti Ekspress reported that the ammunition was defective and “useless”.
RKIK director-general Elmar Vaher, who oversaw the original contract, said the agreement should not have been signed because the supplier had no previous experience selling artillery shells.
“In my opinion, we should not have signed a contract with them,” Vaher said.
The deal was signed as Ukrainian forces faced severe ammunition shortages, worsened by delays in US military aid and the EU’s failure to meet its target of delivering one million rounds to Ukraine by March 2024.
The National Audit Office had repeatedly warned about risks surrounding defence spending, with its latest report raising concerns that the ammunition contract could ultimately burden Estonia’s budget.
Estonian Prime Minister Kristen Michal called a cabinet meeting for September 3 to discuss Pevkur’s resignation and the audit findings.
Estonia’s Prosecutor’s Office has also launched a criminal investigation into matters highlighted in the National Audit Office’s 2025 and 2026 reports.
