Estonia’s defence minister has resigned over an arms deal for Ukraine involving EU funds paid to an Indian company with no track record of making shells.

Estonia’s Defence Minister Hanno Pevkur announced on Wednesday that he would step down from his political post after it emerged that the government had used European Union funding to purchase artillery shells for Ukraine from companies with no previous track record of producing the weapons.

Estonian public broadcaster ERR reported on Wednesday that the government struck a deal in 2024 to acquire artillery shells for Ukraine, paying €70 million upfront from the EU’s European Peace Facility to fund the purchase.

The companies involved, however, had never previously sold a single artillery shell. Estonia is now disputing the contracts in a case before the European Court of Arbitration in Strasbourg.