TALLINN: An Indian-owned defence company has emerged at the centre of a €70 million ammunition procurement scandal in Estonia, which has led Defence Minister Hanno Pevkur to resign and accept political responsibility for the controversy.
The case centres on Datasel SRL, an Italy-based ammunition company acquired by Nagpur-based Neco Defence Munitions, part of India’s Neco Group.
Estonia awarded contracts involving Datasel to procure artillery shells for Ukraine using funds from the European Union’s European Peace Facility.
According to reports by Estonian public broadcaster ERR and The Telegraph, the company was contracted despite having no previous track record of producing or selling the type of artillery shells Estonia sought to purchase.
Estonia made the payment in August 2024, with the ammunition intended to reach Ukrainian forces by November that year.
However, the deliveries faced repeated delays. When ammunition was eventually inspected in 2025, the rounds were found to be defective and were not sent to Ukraine, The Telegraph reported.
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The controversy subsequently came under greater scrutiny following findings by Estonia’s National Audit Office over defence procurement.
Pevkur, who had served as Estonia’s defence minister since 2022, announced his decision to step down and accept political responsibility for the defence sector.
“As defence minister, I of course have to recognise that I am responsible for the entire area under my ministry,” Pevkur said, according to ERR.
He maintained that he was not personally involved in negotiating or reviewing individual contracts, saying those responsibilities rested with Estonia’s Centre for Defence Investments (RKIK).
The dispute has nevertheless put the Indian-owned defence supplier under scrutiny in Europe, with the failed ammunition procurement becoming a major political controversy in Estonia and ultimately contributing to the defence minister’s resignation.
The ammunition had been intended to support Ukraine in its war with Russia, while the procurement was financed through European Union military assistance.
