Estonian defense minister resigns after procurement scandal

Estonian Defense Minister Hanno Pevkur resigned on Wednesday night following accusations from national auditors about financial irregularities within his ministry. The scandal revolves around undelivered ammunition intended for Ukraine. Pevkur, who has held the position since 2022, announced his resignation the day after it was revealed that his ministry had awarded a €70 million artillery contract to an Indian company with no prior history of ammunition sales.

Following the failure to deliver the shells, Estonia sought redress at the European Court of Arbitration. In a social media post, Pevkur emphasized that Estonian security is a collective responsibility and thus accepted political accountability for the defense sector. He had faced calls for his resignation after the national audit office reported "serious problems" concerning the defense ministry's fund utilization and asset management, claims that echoed those made in the previous year.

The artillery contract, funded by the EU's European Peace Facility, was awarded in 2024 to Datasel S.R.L., an Italian firm owned by the Indian entity, Neco Defence Munitions. Pevkur claimed he had not reviewed the contract, asserting that his role typically does not involve such procurement specifics. Despite not directly involved in the contract details, Pevkur acknowledged that the National Audit Office's criticisms, particularly related to the defense forces and the Center for Defense Investments, raise questions about his political responsibility.

After Pevkur's resignation, Estonia raised its defense spending from 2 percent to 5 percent of GDP in response to Russia's full-scale invasion of Ukraine in 2022.