Archive · 4 Sep 2026
Estonian Defence Minister Quits Over €70m Ukraine Arms Deal
Estonia planned to use €70 million to help provide artillery supplies to Ukraine.
The contract was connected to an Indian-owned company that had not previously made or sold artillery shells.
No shells were delivered.
Estonia’s National Audit Office criticized how the deal was handled.
Defence Minister Hanno Pevkur said he did not negotiate or personally read the contracts.
He said ministers are responsible for broad decisions, while officials handle individual purchases.
However, he also said the audit findings raised questions about his political responsibility.
Pevkur resigned because of those concerns.
Estonia is challenging the contracts, and the European Union is considering whether Estonia must repay the money.
Hanno Pevkur resigned as Estonia’s defence minister after criticism of a €70 million artillery-supply contract intended for Ukraine.
Estonia’s National Audit Office questioned how the contract was handled.
The contract involved an Indian-owned company with no previous experience manufacturing or selling artillery shells.
No artillery shells were delivered, and Estonia is contesting the contracts in proceedings before the European Court of Arbitration in Strasbourg.
The European Commission is discussing with Estonia whether the country must return the €70 million from the European Peace Facility.
- Who
- Estonian Defence Minister Hanno Pevkur, Estonia’s National Audit Office, the European Commission and an Indian-owned company were involved in the controversy.
- What
- Pevkur resigned over criticism of a €70 million artillery-supply contract intended for Ukraine, under which no shells were delivered.
- When
- Pevkur announced his resignation on Wednesday; he had served as defence minister since 2022.
- Where
- The deal concerned Estonia and military assistance for Ukraine; the contracts are being contested before the European Court of Arbitration in Strasbourg.
- Why
- The resignation followed audit concerns about the contract’s handling and questions about ministerial accountability.
Accountability concerns
Minister’s defense
Political responsibility
Accountability concerns
The National Audit Office’s criticism of the Defence Forces and the Centre for Defence Investments raised questions about political accountability, prompting Pevkur’s resignation.
Minister’s defense
Pevkur said ministers do not personally manage every procurement contract and that individual negotiations are handled by officials.
Role in the contract
Accountability concerns
Critics focused on the ministry’s responsibility for a deal involving a company without previous artillery-shell experience and no delivered shells.
Minister’s defense
Pevkur said he had not read the specific contracts and that his role was to make broader strategic decisions, including whether to support Ukraine.
- Contract value
- €70 million, described as around Rs 768.50 crore.
- Intended recipient
- Ukraine.
- Supplies
- Artillery supplies; no shells were delivered.
- Company background
- The Indian-owned company had no previous experience manufacturing or selling artillery shells.
- Funding source
- The European Peace Facility.
- Legal dispute
- Estonia is contesting the contracts before the European Court of Arbitration in Strasbourg.
- Potential consequence
- The European Commission is discussing whether Estonia may have to return the €70 million.