Estonian Defence Minister Hanno Pevkur resigns over €70m arms procurement scandal

September 3, 2026 at 10:27 AM1 min

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Estonian Defence Minister Hanno Pevkur resigned on Wednesday, September 2, accepting political responsibility for a €70 million advance payment for artillery shells that were never delivered. The payment went to Italian company Datasel S.R.L., which an audit found had never sold a single shell. Pevkur will remain acting minister until parliament approves his resignation when its autumn session begins on September 14.

Key Facts

Estonia paid €70 million as an advance to Italian company Datasel S.R.L. for artillery shells intended for Ukraine, but no ammunition was delivered.
An audit found that Datasel S.R.L. had never sold a single shell before the Estonian deal.
Hanno Pevkur has served as Estonia's defence minister since 2022.
Pevkur's resignation must be approved by the Riigikogu, whose autumn session begins on September 14.

Resignation Announcement

Hanno Pevkur announced his resignation on Wednesday evening, September 2, stating he accepts political responsibility for the entire defence sector. He said the defence minister does not negotiate contracts or count socks and cartridges, but makes principled decisions on supporting Ukraine. Pevkur added that he has no problem taking responsibility and that the prime minister must find a new defence minister. He will continue as acting minister until the Riigikogu approves his resignation at the start of its autumn session on September 14.

Arms Procurement Scandal

The scandal centres on an audit that revealed Estonia attempted to purchase artillery shells for Ukraine from Indian-linked companies that had never sold a single shell. The State Centre for Defence Investments (RKIK) transferred €70 million as an advance to Italian company Datasel S.R.L. for weapons intended for Ukraine. Estonian weekly Eesti Ekspress reported that Datasel S.R.L. is a shell company behind which stand entrepreneurs from India. Estonia never received the purchased ammunition despite the advance payment.