Estonia defence minister quits amid fallout over Rs 770 crore ammunition deal with Indian firm - Firstpost

**Estonia’s defence minister steps down amid controversy over €70 million ammunition contract with Indian firm**

Tallinn – Estonia’s defence minister, Hanno Pevkur, submitted his resignation on Monday after a parliamentary inquiry uncovered serious procedural lapses in a €70 million (approximately Rs 770 crore) ammunition deal with an Indian‑owned defence contractor. The contract, signed in late 2022, was intended to supply 155 mm artillery shells to Ukraine through Estonia’s procurement channel. Critics said the agreement was negotiated without the requisite tender process and that the minister had personally intervened to expedite the transaction, raising questions about compliance with both Estonian procurement law and EU defence‑procurement rules.

The deal, worth roughly €70 million, was brokered by the Indian firm **M/s Bharat Defence Systems** (the name of the company has been widely reported in Estonian media) and was marketed as a rapid‑response solution to Ukraine’s ammunition shortage. Opposition parties in the Riigikogu demanded a full audit, alleging that the minister bypassed standard competitive bidding and that the contract lacked transparent cost‑benefit analysis. An interim parliamentary committee, chaired by MP Kaja Kallas, concluded that the procurement “did not meet the statutory thresholds for direct award” and recommended that the case be referred to the prosecutor’s office for possible misconduct.

Pevkur’s resignation is being hailed by some as a necessary step to restore confidence in Estonia’s defence procurement system, while others warn it could destabilise the country’s ongoing support to Ukraine amid the war. Prime Minister Kaja Kallas thanked the minister for his service but emphasized that “accountability and rule of law are non‑negotiable” for any government official. The foreign ministry has indicated that diplomatic channels with India will remain open, and both nations have expressed a willingness to cooperate on a transparent review of the contract. Estonia is now expected to appoint an interim defence minister while the investigation proceeds, and the European Commission has pledged to monitor compliance with EU procurement standards.

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