Estonian Defense Minister resigns after scandal over procurement of grenades for Ukraine

Estonia's defense minister, Hanno Pevkur, has resigned following a scandal involving the procurement of artillery shells for Ukraine. The controversy centers around a contract worth 70 million euros paid to an Indian company that had previously sold no grenades. Pevkur stated he was not personally aware of the issues surrounding the purchase but accepted political responsibility for the outcome. He emphasized that while the defense minister does not handle the detailed aspects of such contracts, the criticisms from the State Audit Office raised questions about political accountability. As a result, Pevkur decided to take political responsibility for the entire defense sector and hand over his duties to the prime minister. Pevkur served as defense minister since 2022. It was revealed on Wednesday that Estonia attempted to purchase artillery shells for Ukraine and had already paid 70 million euros to Indian companies that had never sold a single grenade before. Magnus-Valdemar Saar, the former head of the Defence Investment Centre (RKIK), stated that no major decisions were made without the approval of the defense ministry head. Both the previous chief of staff, Kusti Salm, and the current chief of staff, Kaimo Kuusk, were informed during the negotiations for the initial contract. Pevkur explained in an interview that he did not read the contracts himself but confirmed they were presented to him by the RKIK. When asked why he did not read the contracts, Pevkur clarified that the defense minister is not responsible for resolving such details. He stated that the defense minister does not conduct negotiations on contracts, nor does he count bullets or shells. Instead, the defense minister makes fundamental decisions regarding support for Ukraine. The preparation for contract negotiations and finding contractual partners is the responsibility of the RKIK. The contract was signed during a time when Ukrainian forces faced a severe shortage of artillery shells, exacerbated by delays in American aid packages and the European Union's failure to meet its goal of delivering one million shells by March 2024. The Estonian Defence Investment Centre (RKIK) had already transferred millions of euros to the company, but the company repeatedly reported delays, and deliveries did not arrive for months. When the shipment finally arrived in 2025, the shells were reportedly defective and "useless," according to reports from Eesti Ekspress. The contract was financed using funds from the European Instrument for Security Assistance, part of the European Union's financial mechanisms. The Estonian State Audit Office published a report on August 28 criticizing the defense spending of the country, highlighting issues with military purchases by the Ministry of Defense in recent years. Following the publication of the report and the discovery of the error valued at 70 million euros, calls for Pevkur's resignation began, according to ERR News. The contract was signed with the Italian company Datasel S.r.l., whose owner is the Indian company Neco Defense Munitions. The agreement was intended to deliver ammunition for Ukraine's fight against Russian forces. The purchase was funded through the European Union's financial instruments. The contract was signed during a period when Ukrainian forces faced a serious shortage of artillery shells, worsened by delays in American aid packages and the European Union's failure to achieve its goal of delivering one million shells by March 2024. The Estonian Defence Investment Centre (RKIK) had already transferred millions of euros to the company, but the company repeatedly reported delays, and deliveries did not arrive for months. When the shipment finally arrived in 2025, the shells were reportedly defective and "useless," according to reports from Eesti Ekspress. Current director of the RKIK, Elmar Vaher, who was not overseeing the original contract, told Eesti Ekspress that the contract should not have been signed in the first place. "In my opinion, we shouldn't have signed the contract with them. If I start building a house and hire a company that has never built a house before, there is suspicion that the house won't be completed," warned Vaher. Defense spending in Estonia has dramatically increased since the comprehensive Russian invasion of Ukraine in 2022. According to data from the Organisation for Economic Co-operation and Development (OECD), defense allocations rose from two percent of GDP in 2022 to 3.4 percent in 2025. Estonia announced in 2026 that defense allocations would rise to 5.4 percent of GDP, with the defense budget increasing by 42 percent. Tallinn also committed to ensuring more than 117 million dollars in military assistance to Ukraine during 2026. The Estonian State Audit Office has repeatedly warned about the risk of improper expenditure of public funds. The report from August was the latest in a series of unfavorable audits of the Ministry of Defense's spending. Pevkur stated he was resigning "firmly convinced that we made the right decisions to strengthen national defense." He added, "Estonia is better protected than ever before. I want strength and success for the defense sector because the Estonian people must be assured of the equipment and resources of the Defense Forces and continue unwaveringly supporting Ukraine, as they help ensure our security."