Estonian defence minister quits over botched EU-funded arms deal involving India firm | World News - Hindustan Times

**Estonia’s defence minister resigns amid controversy over EU‑funded ammunition deal with Indian supplier**

Tallinn – Defence Minister Hanno Pevkur announced his resignation on Tuesday after a €70 million weapons contract intended for Ukraine ran into serious procedural and transparency problems. The agreement, financed through the European Union’s European Peace Facility, called for the delivery of 155 mm artillery shells produced by an Indian defence firm, Munitions International Ltd. Critics in the Estonian parliament and the public questioned the procurement’s compliance with EU rules, alleging that the deal was awarded without a proper competitive tender and that the price may have been inflated.

The scandal erupted when opposition parties uncovered internal communications suggesting that the ministry had bypassed standard procurement protocols to fast‑track the contract, citing the urgent need to support Ukraine’s defence. An investigation by the Estonian Internal Security Service (EAK) was launched, and the European Commission signalled it would review the use of EU funds in the transaction. Prime Minister Kaja Kallas accepted Pevkur’s resignation, stressing that “accountability and integrity are non‑negotiable in matters of national security and international cooperation.”

The fallout is expected to prompt a broader audit of Estonia’s defence procurement processes and may delay further arms deliveries to Kyiv. While the government has pledged to continue supporting Ukraine, officials say a new, fully compliant tender will be opened to replace the aborted contract. The episode has also sparked a debate within the EU about strengthening oversight of externally funded arms deals to prevent similar controversies in the future.