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[POLITICS] · Estonia, Italy, India, Ukraine · 38 sources

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Estonia Defence Minister Hanno Pevkur resigns over €70m shell scandal

Estonian Defence Minister Hanno Pevkur has resigned following a major procurement scandal involving approximately €70 million in advance payments for artillery shells intended for Ukraine. The funds, provided through the EU’s European Peace Facility, were paid to Datasel S. R. L., an Italian-registered company owned by the Indian firm Neco Defence Munitions.

Investigations revealed that Datasel had no prior experience in manufacturing or selling artillery ammunition. While some shipments eventually arrived, they were reported to be defective or failed to meet quality requirements. The Estonian Centre for Defence Investments (RKIK) had signed multiple contracts in 2024, but deliveries were repeatedly delayed.

Pevkur stated he was accepting political responsibility for the failures within the defense sector, despite noting that he does not personally manage contract negotiations or inventory. The resignation follows a report from Estonia's National Audit Office, which criticized the Ministry of Defence and the RKIK for serious deficiencies in financial management, contract oversight, and asset accounting. Estonia is currently pursuing the supplier through international arbitration in Strasbourg to recover the stranded funds.

Entities

Datasel S. R. L. · Estonia · Estonian Centre for Defence Investments · Estonian Ministry of Defence · Estonian National Audit Office · Hanno Pevkur · Kristen Michal · Neco Defense Munitions · Ukraine

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8 days ago
8 days ago