Estonia might have to return European Peace Facility sums over ammo procurement mess
It is not yet clear whether Estonia will have to repay the money it received from the European Peace Facility to purchase artillery shells for Ukraine, European Commission spokesperson Christian Wigand said.
It is not yet clear whether Estonia will have to repay the money it received from the European Peace Facility to purchase artillery shells for Ukraine, European Commission spokesperson Christian Wigand said.
It emerged Wednesday that Estonia had sought to purchase artillery shells for Ukraine and paid a total of €70 million in advance to an Indian supplier that had never previously sold a single shell. Part of the money came from the European Peace Facility.
European Commission spokesperson Christian Wigand said it is not yet clear whether Estonia will have to repay the money. He said the European Peace Facility is an important instrument for providing military assistance to Ukraine and enabling the delivery of equipment.
The European Commission is in contact with Estonian authorities to examine the matter more closely. Wigand confirmed that measures are in place to ensure that European Union funds are used properly.
Speaking at the government press conference on Thursday, Defense Minister Hanno Pevkur, who announced his resignation Wednesday, said Russia had wanted the same shells as Ukraine. "The countries where they were available weren't nice, friendly countries where you could just go and make an elegant purchase. This involved risk," Pevkur said.
Minister: There should ne no risks for Estonian taxpayers
He continued that, under all the contracts signed, equipment and ammunition worth hundreds of millions of euros has reached Ukraine.
"The general rule is that if due diligence has been carried out and the funds have been managed prudently, there should be no risk to the Estonian taxpayer," Pevkur said. He added that if any company deliberately defrauded the Ukrainian people and failed to deliver the ammunition, criminal proceedings should be launched against it.
In August 2024, the Estonian Center for Defense Investments (RKIK) signed its first purchase contract with Italy-registered company Datasel S.R.L. and transferred the first €15 million. The money did not come from Estonia's state budget, but from the European Peace Facility.
RKIK signed a second contract with Datasel in October 2024, again transferring an advance payment of more than €10 million. Two more contracts were signed at the end of 2024 and advance payments were made, bringing the total to around €70 million.
While the company delivered some components to an intermediary warehouse in a European country, RKIK found the shipment to be incomplete and not of sufficient quality, terminated its contracts with Datasel last fall and requested the company return advance payments.
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Editor:
Merilin Leetna, Marcus Turovski