Estonia Defence Minister Resigns Over Botched Rs 770 Crore Arms Deal With Indian-Owned Firm - News18

**Estonia’s defence minister steps down amid controversy over a €70‑million arms contract with an Indian‑owned firm**

Kalle Laanet, Estonia’s Minister of Defence, announced his resignation on Tuesday after a parliamentary inquiry found serious shortcomings in a €70 million (approximately Rs 770 crore) procurement deal meant to supply 155 mm artillery shells to Ukraine. The contract, signed in early 2024, was financed under the European Union’s “Ukraine Support Package” and awarded to the Indian‑owned company **Astra Defence Systems Ltd**, a subsidiary of the larger Indian conglomerate **Astra Group**. Laanet said his departure was “necessary to restore confidence in the ministry and to allow an impartial investigation to proceed.”

The deal quickly attracted scrutiny after opposition members and watchdog groups raised questions about the lack of a competitive tender, the inflated unit price of the shells, and the firm’s limited track record in delivering NATO‑standard ammunition. Estonia’s National Audit Office reported that the procurement process bypassed standard EU defence‑procurement rules, and that key documentation was missing or incomplete. Critics also highlighted that the shells, sourced from a manufacturer based in India, required additional re‑certification to meet NATO specifications, causing further delays and cost overruns. The controversy intensified when it emerged that the EU‑funded portion of the contract had not yet been transferred, prompting concerns over the proper use of European assistance for Ukraine’s war effort.

Laanet’s resignation has triggered a broader political reckoning. Prime Minister Kaja Kallas expressed disappointment but affirmed that the government would “review all defence contracts to ensure full transparency and compliance with EU regulations.” The opposition has called for a full parliamentary hearing and for the establishment of an independent oversight body for future arms procurements. Meanwhile, EU officials have pledged to cooperate with Estonian authorities to audit the use of EU funds and to prevent similar irregularities in other member states. The incident underscores the challenges smaller NATO members face in balancing swift military support for Ukraine with rigorous procurement standards.