Estonia's defense minister resigned on 2 September over a failed €70 million ammunition deal for Ukraine, ERR reported. The state procurement agency paid EU funds to companies that had never sold artillery shells. Estonian taxpayers may now have to cover the losses.

The Baltic states have poured billions into defense since Russia's full-scale invasion of Ukraine. Estonia alone redirected €500 million toward air defense and drones. It pledged 0.25% of GDP in annual aid for Kyiv. Defense budgets have grown faster than the procurement systems managing them.

Minister walks over "socks and ammunition"

Hanno Pevkur has held the post since 2022. Amid the scandal, he told Estonian public broadcaster ETV he would step down.

"The minister does not count socks and ammunition," Pevkur said.

RKIK's former chief countered that no major decisions were made without the ministry's approval.

Three opposition parties called for his resignation before he announced it. Prime Minister Kristen Michal said Pevkur was not personally at fault but acknowledged political responsibility applied. The resignation followed a National Audit Office report released on 28 August. Estonia's Prosecutor's Office has also opened a criminal investigation into the procurement.

The deal that fell apart

In 2024, Estonia's Center for Defense Investments (RKIK) signed four contracts with Datasel S.R.L., an Italian-registered firm. Eesti Ekspress reported that the Indian company Neco Defense Munitions owned it. Neither had ever sold a single artillery shell. RKIK paid roughly $81 million in advance using the EU's European Peace Facility. The first delivery was due in November 2024. Ammunition that arrived failed to meet quality standards. Estonia canceled the deals and filed a case at the European Court of Arbitration in Strasbourg.

Pevkur is the second Baltic defense minister to resign in four months. Latvia's Andris Sprūds stepped down in May after drone incursions from Russia's war destabilized the country's government.