Estonian Defence Minister Hanno Pevkur has announced his resignation after a National Audit Office report exposed serious shortcomings in defence procurement and accounting, intensifying scrutiny of how Tallinn has managed rapidly rising military spending and purchases linked to support for Ukraine, Estonia’s national broadcaster ERR.ee reported on September 3.

Estonia has emerged as one of Nato's most committed defence spenders and supporters of Ukraine, while preparing to channel unprecedented sums into its own military capabilities. Questions over procurement controls could therefore undermine public confidence at a time when the country is accelerating defence investment in response to the security threat from Russia.

Pevkur, a member of the ruling Reform Party who has served as defence minister since 2022, told ETV's "Aktuaalne kaamera" that he accepted political responsibility despite denying personal involvement in questionable procurement decisions.

"As defence minister, I of course have to recognise that I am responsible for the entire area under my ministry and if you are now waiting for that big answer, then, of course, a leader must have both the courage and the stature to take responsibility as a matter of political responsibility, even when there is no personal responsibility. I will take that responsibility and the prime minister will have to find a new defence minister," Pevkur said, ERR.ee reported.

The controversy escalated after it emerged that Estonia had sought to buy artillery ammunition for Ukraine and paid €70mn in advance to Indian companies that reportedly had no previous record of selling artillery shells.

Magnus-Valdemar Saar, former head of the Centre for Defence Investments (RKIK), said major decisions had not been taken without the knowledge of senior Defence Ministry officials. Pevkur acknowledged that RKIK had presented the contracts to him but said he had not read them, ERR.ee reported.

A National Audit Office report also identified broader problems with defence-sector accounting and risks surrounding the use of state assets.