Estonian defence minister Hanno Pevkur resigns after €70 million advance payments
Auditors found institutional failings after Estonia advanced roughly €70m to Datasel for artillery rounds that were not delivered.
Estonia's defence minister, Hanno Pevkur, announced his resignation after auditors revealed that the government had advanced about €70 million to the company Datasel for artillery ammunition destined for Ukraine, despite the firm having no prior sales of the requested shells.
Posting on Facebook, Pevkur said he did not personally know the details of the contract problems but would accept political responsibility. He wrote: "A leader must have the strength and courage to take responsibility. Although the minister does not count socks and bullets and does not negotiate contracts, the remarks of the National Audit Office raise the question of political responsibility."
Contracts, payments and missed deliveries
Estonia signed the first deal with Datasel in August 2024, when the country's state defence investment centre paid €15 million up front. The funds came not from the Estonian state budget but from the European Peace Facility. Datasel is registered in Italy and is owned by the Indian company Neco Defense Munitions; neither Datasel nor its parent had previously manufactured or sold the artillery shells requested under the contract.
A second agreement followed in October 2024 with an advance payment of more than €10 million. By the end of 2024 two further contracts had been signed and the total of advance payments reached roughly €70 million.
The first delivery was scheduled for November 2024, but the supplier reported production problems and the ammunition has not been delivered in line with the contracts. Estonia has launched proceedings against the company; the dispute is now before the European Centre for Arbitration and Mediation.
Estonian auditors reported serious shortcomings in the institutions under the Ministry of Defence, saying those failures raise the risk of misuse of state funds and assets and noting similar issues in previous years. Pevkur had served as minister of defence since 2022. He added on Facebook: "Therefore today I must take political responsibility for the entire defence sector and hand over the office of minister of defence to the prime minister."
Photo: press material from the event
