RKIK rejects Datasel offer to resolve ammunition dispute

Estonia’s State Defence Investment Centre, known as RKIK, has rejected Datasel’s proposal to create a joint working group to resolve disputes over contracts, ERR reported. RKIK said the proposal came too late.

Datasel has sent a letter to the government, the Defence Ministry, the State Defence Investment Centre and members of parliament, offering to establish a joint working group and expressing readiness to complete its deliveries.

The company is seeking to repair its reputation following extensive attention in Estonia and abroad. It is represented in Estonia by the law firm LINKLaw and communications company Powerhouse.

Datasel says it wants to demonstrate that it is an operating company capable of making deliveries and fulfilling its contracts with the Estonian state.

“Datasel has all the resources and supply chain needed to fulfil its contractual obligations. We are ready to sit down with RKIK and resolve all disagreements. The aim is to settle the disputes in a way that gives both sides what they have wanted from the beginning,” attorney and Datasel representative Veiko Viisileht said.

Viisileht added that Datasel did not believe it was too late to resolve the disagreements.

Maria Pihlak, an attorney representing RKIK, said such proposals would no longer lead anywhere.

“These contracts were financed through the European Peace Facility. The period for using this financing has now ended. Put simply, RKIK currently has no budgetary resources to accept in the future the remaining ammunition that is allegedly produced or in production,” Pihlak said.

She added that court and arbitration proceedings were under way and that RKIK would continue defending its rights through those processes.

The parties also disagree over whether the contracts were properly terminated. Pihlak said the contracts had been terminated because Datasel had repeatedly missed deadlines.

Viisileht said whether the contracts had been validly terminated was itself one of the issues being contested in court and arbitration.

Raimond Kaljulaid, a member of the parliamentary national defence committee, said Datasel’s latest appeal had not increased confidence in the company.

Kaljulaid said the company may have been prompted to try to fulfil its contractual obligations after news that it would face serious scrutiny at European level.