Estonian defence investment centre head: eight of 28 ammunition contracts for Ukraine problematic

The head of Estonia's Centre for Defence Investments (RKIK), Elmar Vaher, said on Friday during the ETV programme "Terevisioon" that eight of the 28 contracts signed for ammunition procurement for Ukraine, funded through the European Peace Facility, are now considered problematic. The contracts together total more than 350 million euros.

According to Vaher, the eight contracts are in what is called the "red zone" — deliveries under them have not proceeded as the Estonian side expected. Court proceedings have already begun on six contracts: one case is being heard in Estonia, the rest in arbitration courts. Vaher did not rule out that the number of disputes could grow further.

The RKIK head said the state's main current goal is to recover the money already paid. Because the funds come from the European Peace Facility, Estonia is bound by deadlines set by the European Union, and a missed delivery deadline is one ground for terminating a contract.

In one case, Vaher noted, the main problem was not only delivery timing but also product quality — shells that RKIK specialists inspected in person, whose use could have been either dangerous or ineffective. He stressed that what was offered was simply not what Ukraine needs to win the war.

Vaher acknowledged that signing such contracts and making large advance payments to intermediary companies set up solely for that purpose had, in his view, been a mistaken decision. He took over RKIK leadership after these contracts were already signed; by then, many of the problematic deals had reached a stage where negotiation options were essentially exhausted, so the centre's leadership decided to end talks and pursue the state's interests through the courts.

Discussing the causes, Vaher said RKIK's previous structure had been too narrow, with a small circle of decision-makers and a lack of additional oversight layers that could allow mistakes to occur. He also cited insufficiently effective internal control and decision-recording processes. Estonia's State Audit Office had previously noted that for some RKIK decisions made in 2024-2025, it was impossible to understand why they were taken.

Vaher said his task now is to change how the organisation works, restore trust, and build a system capable of effectively managing the significantly increased defence budget. He declined to assess his predecessors' decisions, noting many staff involved with the problematic contracts have already left the organisation.

Commenting on Defence Minister Hanno Pevkur's resignation, announced on 2 September as he took political responsibility for problems in the defence sector, Vaher declined to judge the minister's decision but said it had been made consciously.