- Estonian Defence Minister Hanno Pevkur offered his resignation on Thursday, 3 September.
- Estonia's €70m ammunition deal has failed, exposing cracks in Europe's war chest.
- Estonia filed for arbitration at the European Court of Arbitration in Strasbourg by spring 2026.
- The European Commission is in contact with Estonian authorities to examine the case, as stated by Mr Wigand.
- Hungary's new government lifted its two-year block on EPF reimbursements in June 2026, freeing roughly €6.6bn.
- Discussions on fund allocation are ongoing, as the swift mobilisation of those funds remains a priority.
Estonian Defence Minister Hanno Pevkur resigned on September 3, 2024, amid a scandal involving a €70 million ammunition deal with Datasel S.r.l., which failed to deliver promised artillery shells to Ukraine.1
The contracts, signed between August and December 2024, aimed to provide 155mm artillery shells within six to eight months. However, no shells arrived, and the test batches that were inspected did not meet NATO standards.
In response to the failed deal, Estonia has filed for arbitration at the European Court of Arbitration in Strasbourg, seeking accountability for the procurement process.
The Estonian Centre for Defence Investments (RKIK) was responsible for the contracts, and the government argues that normal procurement checks were applied, asserting that any financial loss should be borne by the supplier, not taxpayers.
The European Commission is currently examining the case, with officials indicating that they are in contact with Estonian authorities to investigate the situation further.4
Datasel S.r.l. has delivered nothing, raising concerns about the oversight mechanisms in place, which failed to catch the issues in time.
The European Peace Facility (EPF) has mobilised €6.4 billion to support Ukraine since 2022, highlighting the urgency of resolving such procurement failures to ensure continued support.
As the situation unfolds, the Estonian government remains focused on addressing the implications of this deal and ensuring accountability.
“Estonia has filed for arbitration at the European Court of Arbitration in Strasbourg, while the European Commission is in contact with Estonian authorities. Hungary's new government lifted its two-year block on EPF reimbursements in June 2026, freeing roughly €6.6bn, with discussions on allocation ongoing.”
