Estonia Defence Minister Resigns Over €70M Ukraine Deal
Hanno Pevkur steps down after scrutiny of EU-funded artillery shell procurement involving an Indian firm
By Anjali Sharma
WASHINGTON – Estonia’s Defence Minister Hanno Pevkur on Friday has resigned over an arms deal for Ukraine that involved European Union funds paid to an Indian company, media reported.
Estonia paid the amount upfront for the shells, but the company Neco Defence Munitions had no track record of making shells, according to media reports.
Pevkur announced that he would step down from his post after it emerged that the government had used EU funds to purchase artillery shells for Ukraine from companies having no previous track record of producing the weapons, media reported.
Estonian public broadcaster ERR stated that the government signed the deal in 2024 to acquire artillery shells for Ukraine, paid €70 million upfront from the EU’s European Peace Facility to fund the purchase.
The companies involved had never sold a single artillery shell.
It is disputing the contracts in a case before the European Court of Arbitration in Strasbourg.
Pevkur served as the defence minister since 2022.
He said that as the defence minister he must accept responsibility for the entire area under his authority addressing the scandal while announced his resignation on public broadcaster ETV.
Pevkur stated “Although the minister does not count socks and ammunition or conduct contract negotiations, the National Audit Office’s criticisms, primarily concerning the activities of the Defence Forces and the Centre for Defence Investments, raise the question of political responsibility”.
Estonia’s National Audit Office criticized the Baltic country’s defence spending, which included investments made by its armed forces.
It had raised concerns over the Estonian Centre for Defence Investments, the country’s military procurement agency, media reported.
Pevkur stated that he had not read them.
He added “The defence minister does not conduct contract negotiations. The defence minister does not count socks and ammunition… The defence minister makes the fundamental decision to support Ukraine”.
