Estonia’s Defence Minister Hanno Pevkur has resigned amid controversy surrounding a controversial arms procurement agreement with an Indian-linked company. The deal, reportedly worth $70 million, or around ₹769 crore, involved the supply of artillery shells intended for Ukraine.
Estonia had signed the contract in 2024 with Datasel SRL, an Italy-registered company that had been acquired earlier that year by India’s Neco Defence Munitions, part of the Jaiswal Neco Group. The agreement later came under scrutiny after concerns emerged over the supplier’s limited experience in manufacturing and delivering artillery ammunition.
According to observations reportedly raised by Estonia’s National Audit Office, the company lacked a significant track record in supplying artillery shells. The delivery of the ammunition was also delayed, with production-related difficulties repeatedly pushing back the schedule.
When the ammunition was eventually received by Estonia in 2025, questions were reportedly raised over its quality. The controversy triggered political criticism and intensified scrutiny of the defence procurement process.
Estonia has since cancelled the agreement with the Indian-linked supplier. However, the country had already paid a substantial amount under the contract. Authorities are now seeking recovery of the funds through the European Arbitration and Mediation Centre.
Pevkur, who had served as defence minister for nearly four years, accepted political responsibility for the controversy and announced his resignation. In a social media statement, he said national security was a collective responsibility and that he was taking overall political responsibility for the defence sector.
The controversy is particularly sensitive for Estonia, a NATO member bordering Russia and a strong supporter of Ukraine amid the ongoing war.
