Estonia’s Defence Minister Hanno Pevkur has announced his resignation amid controversy surrounding a €70 million defence procurement deal involving ammunition intended for Ukraine, according to media reports.
Britain’s The Telegraph reported that Italy-based Datasel SRL was contracted to manufacture artillery shells for the Ukrainian military despite having no previous record of producing or selling such ammunition.
Estonia reportedly made the payment from an EU military fund in August 2024, with the munitions expected to reach Ukraine’s front lines by November that year.
However, the company allegedly delayed the deliveries several times. When a shipment was eventually inspected in 2025, the ammunition was reportedly found to be defective, and none of the shells were ultimately delivered to Ukraine. The controversy has caused embarrassment for Estonia, which has significantly increased defence spending amid concerns that the country could be among Nato’s first lines of defence in the event of a Russian attack.
Pevkur announced his resignation while appearing on an Estonian television programme, public broadcaster ERR reported on Wednesday.
He said political leaders must have the “courage and stature” to accept responsibility, even when they are not personally at fault.
“As defence minister, I have to recognise that I am responsible for the entire area under my ministry,” Pevkur said, according to ERR. He added that he would accept political responsibility and that the prime minister would have to appoint a new defence minister.
Pevkur also said he had not personally reviewed the contracts involved, although they had been received by his office. Asked why he had not examined them, he said the defence minister was not responsible for handling such operational details.
He maintained that contract negotiations and the selection of suppliers were the responsibility of Estonia’s Centre for Defence Investments (RKIK), the country’s central defence procurement agency.
Meanwhile, Datasel SRL has launched legal proceedings against Estonia, claiming that it had delivered most of the contracted ammunition, worth around €59 million, and would have fulfilled its obligations if Estonia had not terminated the agreement, ERR reported.
Through its lawyer, the company told Estonian newspaper Eesti Ekspress that Datasel was the party that had suffered financial losses as a result of the supply contracts.
The company also disputed the grounds cited by RKIK for terminating the contracts, describing Estonia’s actions and stated reasons as contradictory and illogical, according to ERR.
