Estonian defence minister resigns over €70m undelivered ammunition scandal

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Estonian Defense Minister Hanno Pevkur resigned Wednesday evening after national auditors accused his ministry of spending irregularities and a scandal involving undelivered ammunition for Ukraine.

The center-right politician, who has served as minister since 2022, said he would step down one day after after reports emerged that his ministry had awarded a €70 million artillery contract to an Indian company with no record of ammunition sales.

Estonia took the case to the European Court of Arbitration after the shells were not delivered.

“Estonian security is not a one-man project. It is our joint responsibility,” Pevkur said in a social media post . “That is why I must take political responsibility for the entire defense field today and pass on the baton of the minister of defense to the prime minister at a suitable time.”

Pevkur faced calls to resign after Estonia’s national audit office last month found “serious problems” in the use of funds and accounting of assets in the defense ministry. The watchdog made similar claims last year.

The ammunition procurement contract financed by the EU’s European Peace Facility was awarded in 2024 to Italian-registered Datasel S.R.L, which is owned by an Indian firm, Neco Defence Munitions.

Pevkur said he had not read the contract, saying the ministry is not usually involved in procurement details.

“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 defense forces and the Center for Defense Investments, raise the question of political responsibility,” Pevkur said.

Pevkur said Thursday that under his watch, Estonia raised defense spending from 2 percent to 5 percent of GDP in reaction to Russia’s full scale attack on Ukraine in 2022.