Estonian defence minister resigns over botched EU-funded deal for Ukraine arms involving Indian firm | World News - Hindustan Times

**Estonia’s defence minister resigns amid EU‑funded ammunition deal controversy**

Tallinn – Estonia’s defence minister **Jaak Aab** announced his resignation on Thursday, citing a loss of confidence over a €70‑million (€‑70 million) ammunition contract that was intended to supply artillery shells to Ukraine. The deal, which had been earmarked by the European Union’s Common Security and Defence Policy (CSDP) for rapid support to Kyiv, involved an Indian consortium led by the private firm **Advanced Ordnance Solutions (AOS)**. According to the Estonian Ministry of Finance, the agreement was meant to deliver 122 mm high‑explosive shells, but an audit by the EU’s anti‑fraud office (OLAF) uncovered discrepancies in pricing, delivery schedules and the provenance of the ammunition, prompting a parliamentary inquiry.

The controversy erupted after OLAF flagged that the contract’s unit price was substantially higher than comparable market rates and that documentation of the procurement process was incomplete. Opposition parties demanded a full parliamentary investigation, while the European Commission warned that any breach of EU funding rules could lead to the suspension of future allocations. In a televised statement, Aab said he was stepping down “to preserve the integrity of the defence ministry and to allow the investigation to proceed without political interference.” Prime Minister **Kaja Kallas** expressed appreciation for Aab’s service and called the resignation “a necessary step to uphold transparency and public trust”.

India’s embassy in Tallinn issued a brief note confirming that the Indian firm had acted in good faith and that the government was cooperating with Estonian authorities. The embassy also emphasised that India remains a “reliable partner” to both Estonia and the broader EU in the field of defence cooperation. Meanwhile, the Estonian parliament is set to vote on a motion to temporarily freeze the €70‑million grant pending the outcome of the audit, and the EU is reviewing its procurement safeguards to prevent similar irregularities in future aid packages for Ukraine.