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Estonia paid $81 million for Ukraine’s shells to firm that had never made one—now its defense minister is out

3 septembre 2026 à 14:04

Estonia's Defense Minister Hanno Pevkur.

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.

  • ✇Euromaidan Press
  • Poland sent Ukraine 350 tanks—Europe just agreed to refund it half a billion dollars
    Poland will recover hundreds of millions of euros from a shared European Union fund for weapons it handed to Ukraine, the defense outlet Militarnyi reported. The money had been frozen for two years and only started moving after a change of government in Hungary lifted a veto. Europe's ability to keep weapons moving to Ukraine rests on members trusting they will be paid back for what they give away. When that cost-sharing seizes up, national governments face the full bil
     

Poland sent Ukraine 350 tanks—Europe just agreed to refund it half a billion dollars

3 septembre 2026 à 13:44

Ukrainian troops train in Poland to master Allied Leopard 2 tanks

Poland will recover hundreds of millions of euros from a shared European Union fund for weapons it handed to Ukraine, the defense outlet Militarnyi reported. The money had been frozen for two years and only started moving after a change of government in Hungary lifted a veto.

Europe's ability to keep weapons moving to Ukraine rests on members trusting they will be paid back for what they give away. When that cost-sharing seizes up, national governments face the full bill alone, and the case for the next donation gets harder. A single member's veto can jam that machinery for years.

The money starts flowing again

Poland will receive up to $500 million in 2027 from the European Peace Facility (EPF), an EU fund that reimburses member states for military aid to Ukraine. Deputy Defense Minister Paweł Zalewski told the Polish news agency PAP that the ceiling combines the $465 million now secured with a possible $12–35 million more, depending on which of the two payout options the European Commission picks. Warsaw had already collected $960 million earlier, bringing its total EU reimbursement to roughly $1.4 billion.

A Patriot air defense missile launcher. Photo: South Korean defense ministry.
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The reimbursements had stalled in 2024, when Hungary blocked a $7.7 billion tranche. Budapest dropped the veto in June 2026 after a new government took over, unfreezing the funds. The bloc is now steering part of the money toward joint arms purchases and its training mission for Ukraine, rather than just reimbursement.

Where Poland stands among donors

By Militarnyi's tally of Kiel Institute figures, total Polish aid has reached $6.8 billion, with $5.2 billion of that military. That ranks Poland 11th among donors by raw volume. When weighed against each country's economy, it ranks 9th, equal to 1.021% of Polish GDP, with the military share at 0.775%.

View of the WB Group factory building in Skarżysko-Kamienna, Poland. August 2026.
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What Warsaw handed over

Poland has supplied ammunition and other weapons since early 2022, before the full-scale invasion, and has since handed over more than 350 tanks—14 Leopard 2A4, about 60 PT-91 Twardy, and roughly 280 Soviet-era T-72 variants. Warsaw also sent Krab self-propelled howitzers, Piorun shoulder-fired air-defense missiles, and Grad rocket launchers. Alongside Slovakia, it was among the first NATO states to send Ukraine fighter jets, delivering 14 MiG-29 jets and 10 Mi-24 attack helicopters between 2022 and 2024.

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