Former RKIK chief says minister Pevkur made the Datasel introduction

Former Estonian Defence Investment Centre (RKIK) director Magnus-Valdemar Saar spoke publicly on Wednesday after reports highlighted the silence of former defence-sector leaders regarding dealings with an Indian businessman's shell company. Saar led RKIK from 2021 until summer 2024, the period when Estonia spearheaded the "One Million Shells for Ukraine" initiative.

Saar said RKIK delivered nearly €500 million worth of ammunition to Ukraine during his tenure, insisting every decision followed guidance from the defence minister, who was aware of the risks involved. He described the procurement process: offers arrived via RKIK's partners, the ministry's leadership, or Ukraine; inspections and reports were carried out; and final decisions were made and recorded at the minister's decision meetings.

Saar: minister introduced the contact

Saar said the person who mediated the Datasel contact was introduced to him by Defence Minister Hanno Pevkur, and he presented message exchanges with the alleged intermediary, who used the name "Eric M." Saar claimed Pevkur was constantly and thoroughly informed about the ammunition procurements, including proposing deals himself and deciding to continue assistance even when RKIK suggested ending it in that form. He said there were near-weekly, hour-long meetings covering both new opportunities and associated risks.

Pevkur and intermediary deny the claims

Pevkur said he had never exchanged emails, messages or calls with Eric Malmstead before Wednesday. On a video call, Malmstead and Oculus Strategic Solutions CEO Richard Goff explained that contact with Indian company Neco Defence Munitions began in 2022, and the following year the company acquired Italy-based Datasel.

Malmstead said he had emailed Estonia's general defence-sector address without reply, so he found Saar's contact information from public sources, and the two first met in December 2023. He confirmed the US businessmen were ultimately left out of the RKIK-Datasel deal, though Datasel owes his company €1.8 million for consultations. Estonia paid €60 million in advance for the shells, but the delivered goods failed to meet requirements, and the dispute is now before the courts.