Estonia's defence minister resigns amid €70 million deal scandal

Estonian Defence Minister Hanno Pevkurs announced his resignation on Wednesday evening during the television news programme "Aktuaalne Kaamera". The decision followed sharp criticism from the State Audit Office regarding the conduct of the Estonian Defence Forces and the Estonian Centre for Defence Investments (RKIK).

Pevkurs said the audit office's findings were serious enough that he had to accept political responsibility and step down. He had held the defence minister post since 2022.

Criminal proceedings and audit

A day earlier, on Tuesday, prosecutors announced they had launched criminal proceedings over violations identified within the area overseen by the Ministry of Defence. The State Audit Office review examined the accuracy of the state's 2024 financial report and the legality of related transactions.

The disputed deal with an Indian company

The scandal originated from the revelation that Estonia had paid a €70 million prepayment for ammunition destined for Ukraine to an Indian company that had no prior experience with such transactions.

Magnus Valdemar Saar, the former head of RKIK, confirmed that all major decisions were made with the approval of the Ministry of Defence. According to him, the then-chancellor of the ministry, Kusti Salm, was informed during negotiations on the first contract, and later the new chancellor, Kaimo Kuusk, was also kept informed.

Pevkurs' resignation marks one of the biggest political upheavals in Estonia's defence sector in recent times, tied to the country's support for Ukraine during the ongoing war.