€70m Ukraine arms deal, no shells delivered: Estonia defence minister quits

€70m Ukraine arms deal, no shells delivered: Estonia defence minister quits

Estonia's Minister of Defence Hanno Pevkur. Photograph: (AFP)

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Estonia’s Defence Minister Hanno Pevkur has resigned after an audit raised concerns over a €70 million EU-funded artillery contract awarded to an Indian owned company with no previous record of selling shells.

Estonian Defence Minister Hanno Pevkur has stepped down following controversy over a €70 million (around Rs 768.50 crore) contract for artillery supplies intended for Ukraine. Pevkur announced his resignation on Wednesday after Estonia’s National Audit Office raised serious questions about the way the deal was handled.

The contract involved an Indian-owned company that had no previous experience in manufacturing or selling artillery shells.

The deal has also triggered a legal dispute. Estonia is contesting the contracts in proceedings before the European Court of Arbitration in Strasbourg.

Pevkur, who became defence minister in 2022, said he had decided to resign because the concerns raised by the audit office also raised questions about political accountability.

Speaking to public broadcaster ETV, he said a minister may not personally handle every procurement contract but must still accept responsibility for the work carried out under the ministry.

“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,” Pevkur said.

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Defence minister says he did not handle contract

Pevkur said he had not read the specific artillery contracts and explained that ministers generally do not negotiate individual arms purchases.

“The defence minister does not conduct contract negotiations. The defence minister does not count socks and ammunition,” Pevkur said.

He added that the minister’s role is to make broader strategic decisions, including decisions on military assistance to Ukraine. “The defence minister makes the fundamental decision to support Ukraine,” he said.

The €70 million came from the European Peace Facility, an EU mechanism designed to support conflict prevention, peacebuilding and international security.

The fund was established before the breakout of the full-scale war between Russia and Ukraine in 2022. Since then, the EU has increasingly used it to finance military support and weapons procurement for Ukraine.

The controversy could now have financial consequences for Estonia. European Commission spokesperson Christian Wigand said the EU was in discussions with Estonian officials to establish whether the country would have to return the €70 million.

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Driven by a deep interest in international politics and geo-economics, Ajaypal Choudhary writes on and analyses a wide range of subjects from geopolitics and the global economy to ...Read More