Estonia may have to repay EU funds used for Ukraine shells

Estonia may be required to repay money it received from the European Peace Facility to purchase artillery shells for Ukraine, European Commission spokesperson Christian Wigand told ERR.

It emerged on Wednesday that Estonia had paid a total of 70 million euros in advance to Indian suppliers for shells for Ukraine, although they had not previously sold any shells. Part of the money came from the European Peace Facility, an EU instrument used to provide military assistance to Ukraine.

Wigand said it was not yet clear whether Estonia would have to repay the funds. The European Commission is in contact with Estonian authorities to investigate the matter, he said, adding that measures are in place to ensure EU money is used properly.

At a government press conference on Thursday, Defence Minister Hanno Pevkur, who has announced his resignation, said Russia had also sought the same shells as Ukraine.

“The countries where they could be obtained were not beautiful, cuddly countries where you could go and buy them elegantly. This activity involved risk,” Pevkur said.

He said equipment and ammunition worth hundreds of millions of euros had reached Ukraine under the contracts that had been signed.

“The general rule is that if the duty of care has been fulfilled and the matter has been handled responsibly, there should be no risk to the Estonian taxpayer,” Pevkur said. He added that criminal proceedings should be launched against any company that had knowingly defrauded the Ukrainian people and failed to deliver the ammunition.

In August 2024, the State Defence Investment Centre, known by its Estonian acronym RKIK, signed its first sales contract with Datasel S.R.L., a company registered in Italy, and sent an initial 15 million euros. The money came from the European Peace Facility rather than Estonia’s state budget.

RKIK signed a second contract with Datasel in October 2024 and sent another advance payment of more than 10 million euros. Two more contracts were signed at the end of 2024, bringing the total advance payments to about 70 million euros.