Estonian Minister of Defense Hanno Pevkur resigned over a scandal involving the procurement of artillery ammunition for Ukraine.
The official reported this on his Facebook page.
The Estonian authorities transferred around €70 million in advance payments to Indian companies that had not previously sold artillery shells, but Ukraine never received the ordered ammunition.
Pevkur announced his decision on September 2. The Minister stated that he was taking political responsibility for problems in the defense sector, although he stressed that he did not personally consider himself responsible for the failed procurement.
“The defense minister does not negotiate contracts or count socks or ammunition. The defense minister makes the fundamental decision on supporting Ukraine. Preparing for contract negotiations and finding contractor partners is the responsibility of RKIK,” Pevkur stated.
The scandal concerns a deal concluded by the Estonian Centre for Defence Investment (RKIK/ECDI). The organization signed four contracts with the Italian company Datasel S.R.L., which was acquired by an Indian defense firm, and transferred around €70 million in advance payments for artillery shells intended for Ukraine.
However, the supply never took place, and Estonia is now seeking to recover the funds through court proceedings and international arbitration.
The procurement issues came to light amid an audit of Estonia’s defense sector. The state audit office criticized the performance of the Defence Forces and the Centre for Defence Investment, particularly its financial controls and procurement management.
Amid the scandal, representatives of the Estonia 200, Social Democratic Party, and Isamaa parliamentary groups called on Pevkur to resign.
Pevkur had served as Estonia’s Minister of Defense since 2022. Prime Minister Kristen Michal now has to appoint his successor.
Earlier, Militarnyi reported that Estonia plans to use funding from the European Union’s SAFE (Security Action for Europe) loan program to strengthen its air defense, procure ammunition, and support Ukraine with drones.
Estonia was one of the first countries to begin providing military aid to Ukraine, doing so even before Russia’s full-scale invasion on February 24, 2022.
Because Estonia did not have significant weapons stockpiles, its military aid consisted mainly of procuring weapons from other countries and transferring weapons from its own stocks.
Supplies included Javelin anti-tank missile systems, 122 mm D-30 and 155 mm FH-70 towed howitzers, French-made Mistral SAM systems, small arms, and various types of ammunition.
Estonia’s total military aid to Ukraine since the start of the full-scale war has exceeded €800 million. In 2026, Tallinn continues to support Ukraine, allocating around 0.28% of its GDP to military assistance.
A significant portion of this support consists of procuring products from Estonian defense companies, allowing the country to meet Ukraine’s needs while expanding the production capabilities of its own defense industry.
In January 2024, Prime Minister Kaja Kallas announced that Estonia would allocate 0.25% of its GDP annually to defense support for Ukraine over the following four years. This approach effectively established Estonian aid as a long-term state policy and set an example for other partners regarding the potential scale of support for Ukraine.
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