Estonian Defence Investment Centre rejects Datasel's reconciliation offer
Estonia's Defence Investment Centre (RKIK) has rejected munitions supplier Datasel's proposal to form a joint working group to settle their dispute, saying it is too late for such talks. Datasel insists it can still fulfil its contracts, while litigation and arbitration continue.
Estonian ammunition supplier Datasel has sent a letter to the government, the Ministry of Defence and the Defence Investment Centre (RKIK) proposing to set up a joint working group to resolve their disagreements. RKIK responded that it is now too late for such a step.
Following intense public and international attention, Datasel has been trying to repair its reputation. In Estonia, the company's interests are represented by the law firm LINKLaw and the communications firm Powerhouse. Datasel wants to demonstrate that it is in fact an operating company capable of making deliveries and fulfilling the contracts it signed with the Estonian state.
The letter was also sent to government members and Riigikogu MPs. In it, Datasel affirms its readiness to complete deliveries and proposes a joint working group to settle the dispute. Company representative and sworn advocate Veiko Viisilehk said Datasel has all the necessary resources and a supply chain to fulfil its contractual obligations, and expressed willingness to sit down with RKIK, adding that it is not too late to resolve the disagreements.
RKIK representative, sworn advocate Maria Pihlak, said such proposals will no longer lead anywhere. The contracts were financed through the European Peace Facility, and the period for using that funding has already ended. In simple terms, she said, RKIK now has no budget funds to accept in the future any remaining ammunition that is claimed to have already been produced or to be in production. According to Pihlak, further talks would achieve nothing, as legal proceedings and arbitration are already underway, through which RKIK will continue to defend its rights.
The two sides also disagree on the circumstances of the contract terminations. Pihlak reiterated that the contracts were terminated precisely because deadlines were repeatedly missed. Viisilehk countered that whether the contracts were properly terminated remains one of the disputed issues in both the court case and the arbitration.
Raimond Kaljulaid, a member of the Riigikogu's National Defence Committee, said Datasel's renewed appeal has not increased trust in the company, noting that news had emerged of upcoming serious scrutiny of the company at the European level as well.
