Estonian Defence Minister Hanno Pevkur has resigned following a scandal in which he authorised the payment of €70 million to an Indian company for artillery shells, only to receive ammunition of defective quality, it emerged on Thursday.

Britain’s The Telegraph reported on Monday that Datasel SRL was contracted to produce the shells for use by the Ukrainian military against Russia, and that Datasel had “not previously produced or sold a single shell”.

The newspaper says that Estonia made the payment from the EU military fund in August 2024 to send munitions to Ukraine’s front line by November that year.

“The Indian-run, Italy-based company repeatedly delayed delivery. When a shipment was eventually inspected in 2025, the rounds were found to be faulty and none were sent to Ukraine,” The Telegraph reported.

“The scandal is an embarrassment for Estonia, which has increased its military spending because it could be Nato’s first line of defence against a Russian attack.”

Pevkur announced that he would resign while appearing on an Estonian television programme, public broadcaster ERR reported on Wednesday. He stated that a leader should have the “stature and courage” to take responsibility, even if the fault is not theirs.

“As defence minister, I of course have to recognise that I am responsible for the entire area under my ministry, and if you are now waiting for that big answer, then, of course, a leader must have both the courage and the stature to take responsibility as a matter of political responsibility, even when there is no personal responsibility,” Pevkur was quoted as saying by ERR.

“I will take that responsibility and the prime minister will have to find a new defence minister.”

Pevkur added that he did not look at the contracts, but that his office received them. When asked why he did not read them, he replied that the defence minister “is not responsible for dealing with such details”, ERR added in its report.

“The defence minister does not conduct contract negotiations; the defence minister does not count socks and ammunition. The defence minister makes the fundamental decision to support Ukraine. The preparatory work for contract negotiations and finding contracting partners is RKIK’s responsibility,” he was quoted as saying.

RKIK, or the Centre for Defence Investments, is Estonia’s central procurement body.

Meanwhile, Datasel SRL is suing Estonia on the grounds that it delivered the bulk of the munitions — €59m worth — and would have met its obligations had Estonia not ended the contract, ERR said in a report today.

“Datasel is the party that has suffered losses in connection with these supply contracts,” the company told Estonian newspaper Eesti Ekspress through its lawyer.

“The actions of the Estonian Centre for Defence Investments, particularly the reasons given for the extraordinary termination of the contracts, are contradictory and illogical,” ERR reports citing the statement.