Estonia’s defence minister quits after €70 mn Ukraine shell deal with Indian-owned Italian firm goes awry

Submission Statement: Estonia’s Defence Minister Hanno Pevkur has resigned after his country paid about €70 million advance for artillery ammunition intended for Ukraine to an Italian-registered company owned by India’s Neco Defence Munitions, despite the supplier having no previous track record of manufacturing or selling such shells.

Pevkur announced his resignation saying he was taking political responsibility for problems identified within Estonia’s defence establishment, including the country’s miitary procurement agency, the Estonian Centre for Defence Investments (ECDI).

The company at centre of the scandal is Datasel S.R.L., an Italian firm that was acquired by Nagpur-based Neco Defence Munitions, part of the Jayaswal Group, in March 2024.

Criminal proceeding over corruption have now been initiated against Pevkur.