Ex-RKIK chief Saar: Estonia's defence minister was informed about Datasel deal
Former head of Estonia's Defence Investment Centre (RKIK), Magnus-Valdemar Saar, says Defence Minister Hanno Pevkur was kept informed about ammunition procurement deals, including with Italian firm Datasel. Pevkur and an alleged intermediary deny his claims.
Former RKIK director general Magnus-Valdemar Saar called a press meeting on Wednesday, September 9, following an ERR report that defence officials had stayed silent about Estonia's cooperation with an ammunition producer controlled by Indian businessmen.
Saar led RKIK from 2021 until summer 2024, during the period when Estonia initiated the "Million shells for Ukraine" campaign. He said the agency delivered ammunition worth nearly 500 million euros to Ukraine under crisis conditions, insisting he acted under the defence minister's instructions and that the minister was aware of the risks involved.
How procurement worked
According to Saar, offers reached RKIK through three channels: contracted partners, the Defence Ministry leadership, or Ukraine itself. Each proposal was logged in a table noting delivery timelines, potential problems and export-control conditions, followed by detailed review and inspections. Decisions on specific deals were made at ministerial meetings, which were minuted. Contract terms were then finalised, financial transactions carried out, and a quality check performed before handover.
Saar noted that contracts were ultimately signed with only a small share of potential suppliers, as most ran into export-control, quality or logistics issues.
The Datasel contact and the minister's role
Saar said the person who brokered contact with Datasel was introduced to him by Defence Minister Hanno Pevkur. He showed journalists correspondence with an intermediary identified as "Eric M." Saar claimed Pevkur was continuously briefed on ammunition procurement details, proposed deals himself, and decided to continue the cooperation even after RKIK suggested halting it.
Pevkur denied the claims, stating he never corresponded or spoke with Eric Malmstead. He arranged for journalists to speak directly, via video call, with representatives of Oculus Strategic Solutions — Malmstead and the company's CEO Richard Goff. They explained that the intermediaries first contacted the Indian firm Neco Defence Munitions in 2022, and the following year acquired Italy-based Datasel. Malmstead said he first spoke with Saar in December 2023, and that his firm ultimately was left out of the direct contract between Datasel and RKIK.
Estonia paid 60 million euros in advance for shells intended for Ukraine, but the delivered goods failed to meet requirements, and the dispute is now before the courts.
