How Estonia’s €70 Million Ukraine Arms Fiasco Involving Indian-Run Firm Cost Hanno Pevkur His Job

Estonia's defence minister has resigned over a EUR 70 million (GBP 60 million) scam involving EU-funded artillery for Ukraine, with Hanno Pevkur announcing his resignation following revelations that the country had awarded the EUR 70 million contract to supply the weapons to a company that had not sold a single shell. When the munitions were eventually delivered, they were faulty and incomplete, according to local news outlet Eesti Ekspress. The scandal is an embarrassment for the Tallinn government, which has ramped up its military spending and could be Nato's first line of defence against a potential Russian attack.

Indian-Run Italian Company At Centre Of The Scandal

In August 2024, Estonia used money from an EU military fund to pay Datasel SRL, an Indian-run, Italian-based company, to send munitions to Ukraine. The munitions were supposed to arrive on the front lines by November 2024, but the company suffered repeated delays. UAE Biometric Scam Modus Operandi: Indian Consulate Warns Expats Over Fake Visa and Passport Services.

A shipment was eventually inspected in 2025, but the rounds were found to be faulty and none were sent to Ukraine. Estonia's national audit office revealed the scandal in a report last week, and the government and Datasel remain locked in legal battles over the shipment. Indian National Jay Sunilbharthi Goswami Arrested Over USD 7.5 Million Elder Fraud Scheme in US.

Minister Takes Responsibility, Announces Resignation

While Mr Pevkur said that he was not aware of the issues with the deal, he took responsibility for the outcome. In a Facebook post announcing his resignation, he said, "A leader must possess the stature and courage to take responsibility even when that responsibility is not personal but serves a greater purpose for the protection of the country."

Kristen Michal, Estonia's prime minister, called a cabinet meeting on Thursday to discuss Mr Pevkur's resignation and the findings of the audit reports.

Estonia's Wider Defence Push Amid Russia Fears

Estonia has had a significant military drive over fears of a Russian attack on the countries' shared 183-mile border. Its defence spending last year was 3.4 per cent of its GDP, well above Britain's 2.4 per cent and even the US's 3.2 per cent, with Estonia moving money away from education and hospitals to fund the massively increased defence spending through its Centre for Defence Investments.

After John Ratcliffe, the CIA director, paid an unexpected visit to Moscow, a source told Politico that the purpose was primarily to warn Russia against "any escalatory action against the Baltic states." The country's intelligence director general, Kaupo Rosin, also told The Telegraph that Russia is conducting "state-sponsored terrorism" across Europe.

In recent months, pro-Kremlin Telegram accounts have been calling for an attack on Narva, a small Russian-speaking Estonian border town that is considered particularly vulnerable. Mr Michal previously told The Telegraph, "In Narva and the eastern part of Estonia, the message is quite clear, we are starting the protection of Nato and that of the European Union from the eastern border, from the first metre."

Narva is separated from Russia only via a narrow river and anti-tank fortifications on the bridge that span it.

(The above story first appeared on LatestLY on Sep 03, 2026 08:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).