Rahumägi denies involvement in ammunition purchases

Estonian security entrepreneur Jaanus Rahumägi said on social media that he has not been involved in any ammunition purchase, ERR reported. His name has repeatedly appeared in media reports and politicians’ statements concerning troubled arms procurements, but he had previously declined to comment to the media.

ERR said it had repeatedly sought Rahumägi’s comments on ammunition purchases, but he had not responded. His social media post presents only his perspective and does not allow for follow-up questions.

“The opposition’s broadside against the prime minister yesterday was based on scant facts. Since my name appears six times in the questions sent to the prime minister, I apparently have to say something myself,” Rahumägi wrote.

He said the author of the parliamentary questions could have avoided several factual errors with a basic internet search. Rahumägi added that most of the signatories could also have reached him by telephone.

Rahumägi said he was not involved in buying ammunition from ARCA or any other company. “The company I own, ESC OÜ, has advised ARCA on the tender for selecting a defence industry park since April 2025. That is the entire connection,” he wrote.

He said ESC mainly operates as a security consultant and leads security projects. With ARCA’s permission, he confirmed that the company had been its adviser since April last year, while declining to disclose the details, scale or specific projects involved because of confidentiality requirements in the security sector.

Rahumägi stressed that ARCA had initiated the contact and that ESC had no previous relationship with the company. He also said that, to his knowledge, another group of Estonian entrepreneurs had tried to present itself as ARCA’s representatives.

According to Rahumägi, foreign companies entering a new market almost always use local advisers, including lawyers, financial advisers, communications consultants and market or sector experts. He said the relationship between ESC and ARCA was no different.

Rahumägi said 12 companies took part in the first round of the defence industry park tender, which was conducted through a three-stage process by the State Defence Investment Centre, or RKIK.

All companies that reached the final round had the opportunity to sign an agreement with RKIK, and ARCA was one of them, he said. The tender conditions clearly stated that the Estonian state was not obliged to purchase products from companies selected in the process.

He argued that the process of establishing a factory and potential ammunition purchases were two separate matters, and that deliberately linking them created a misleading impression for the public.

Rahumägi said Rheinmetall and BAE Systems had initially expected the Estonian state to contribute about 150 million to 200 million euros towards establishing the factory, followed by an annual purchase commitment of about 100 million euros. Over eight to nine years, this would have created an obligation of nearly one billion euros for the state, he said.

He also said the claim that ARCA had never genuinely intended to establish a factory in Estonia was not consistent with the known facts.