Estonia's defense minister resigned after auditors found EUR 70 million in advance payments for artillery shells and contracts concealed from the National Audit Office.
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Estonia's National Audit Office reported on 28 August 2026 that the Defence Investment Centre (RKIK) took on financial risks and obligations for the state budget through equipment-mediation contracts, contrary to what the Ministry of Defence told parliament, and that the contracts 'were concealed from the National Audit Office by the RKIK last year.' Under a 2024 deal funded through the EU's European Peace Facility, Estonia paid about EUR 70 million in advance to Datasel SRL, an Italian-registered firm owned by India-based Neco Defense Munitions, which had never sold artillery shells; shipments were delayed, and after on-site inspections Estonian officials said the equipment failed quality standards and was uncompleted. Auditors warned the roughly EUR 70 million could fall on the state budget. Datasel's lawyer says the company is a victim and blames supply-chain delays; the dispute is in court and arbitration. Defense Minister Hanno Pevkur announced his resignation on 2 September 2026, taking political responsibility while saying he had not read the contracts. Estonia's Prosecutor's Office has opened a criminal investigation, per the Kyiv Independent.
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- Kyiv Independent
wasting 70 million euros on faulty ammunition for Ukraine
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