Indian firm Datasel says it, not Estonia, suffered damage in shell dispute

Datasel, a company owned by Indian businessmen that is currently in a legal dispute with Estonia, claims it delivered ammunition worth 59 million euros to Estonia's Centre for Defence Investment (RKIK) and could have completed all its obligations had Estonia not terminated the contract.

The case was reported on Wednesday by Eesti Ekspress, which recalled that Estonia had planned to buy ammunition from Datasel as part of an effort intended to help Ukraine, but the deal fell apart. Last autumn, RKIK terminated its contracts with Datasel and demanded repayment of the advance it had paid.

Datasel disputes this account, and as a result RKIK turned to Estonian courts and international arbitration this spring. Through its lawyer, the company told Eesti Ekspress that Datasel is the injured party in these supply contracts, and that RKIK's actions — particularly the reasons it gave for the emergency termination — are contradictory and illogical.

Figures don't add up

The company confirmed it received 59 million euros in advance payment from RKIK, but according to RKIK, 70 million euros is tied to the ammunition problem. If the remaining money is not with Datasel, it should be somewhere else — though Eesti Ekspress said it does not yet know where.

Datasel explained that, against this advance payment, it delivered a significant quantity of goods to RKIK and issued invoices for them totalling 58 million euros.

Company denies quality issues

Datasel disputes Estonian officials' claim that the quality of goods delivered to an intermediate warehouse was insufficient. However, citing a complex supply chain, it acknowledged that deliveries were delayed.

The company said it was ultimately given to understand that RKIK was unable to accept the remaining goods, stressing that RKIK's notice also covered goods that were already in production or ready for delivery.

In conclusion, Datasel confirmed it remains committed to fulfilling the rest of the contract and is ready to complete it and deliver the goods if RKIK fulfils its own obligations.