Estonia faces €14.5 million repayment to Denmark and Netherlands over failed ammo contracts
Estonia may have to return €14.5 million to Denmark and the Netherlands after artillery shell deals with Italian firm Datasel fell through.
The Center for Defense Investments (RKIK) entered four contracts with Italian company Datasel in August 2024, providing roughly €70 million in advance for artillery shells intended for Ukraine, but none were delivered and the agreements were cancelled. Denmark supplied €9.5 million and the Netherlands €5 million toward those advances, and both nations may now request the return of €14.5 million under bilateral accords.
Estonia is seeking recovery through Estonian courts and Swiss arbitration, while negotiations continue on whether to await the legal outcome. The repayment deadline falls within this year, meaning any refund could hit Estonia’s current budget rather than a future one, contrary to earlier ministry statements. The National Audit Office warned of significant budgetary obligations, and the scandal has already led to the resignation of defence minister Hanno Pevkur and prompted a review by his successor Martin Herem. An anti-corruption committee is demanding full documentation of contacts with Datasel and other ammunition suppliers.
Why it matters
The potential repayment could strain Estonia's current budget and highlights oversight flaws in defence procurement.
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