Estonia terminates Ukraine arms deals worth over €71 million, pursues court cases

The Estonian Center for Defense Investments (RKIK) has so far concluded 27 contracts intended to purchase weapons or ammunition for Ukraine. Of the 27 contracts, seven have been terminated, and RKIK has already taken five of them to court.
Elmar Vaher, head of the Estonian Center for Defense Investments, said on ERR's morning show Friday that RKIK has concluded 28 contracts, eight of which are currently problematic.
Later, RKIK's media relations expert clarified that due to human error a mistake had appeared in the tables, and in fact there are 27 contracts in total, of which seven have been terminated. The total value of all 27 contracts is roughly 350 million euros.
"In the case of these (problematic contracts – ed.), it can be said that they have not gone as we wished, that the goods would reach Ukraine," Vaher said.
For four contracts concluded with one company, RKIK turned to international arbitration. For one joint contract concluded by two companies, RKIK turned to Harju District Court. The total value of these contracts is 59.8 million euros.
In addition, RKIK has terminated two more contracts concluded with two companies, for which materials are also being prepared to turn to court. The total value of these contracts is 11.8 million euros.
Court proceedings expected in this and next year
According to the head of RKIK, it is difficult to assess whether the standard for concluding procurements was lower before his term.

"How people thought at that moment, I do not know, because I was not working at RKIK then. I was a private entrepreneur, I followed this game from the media, like any ordinary citizen. What is clear to me is what is written. We have collected the materials and submitted them to court through a lawyer. I believe that the court proceedings will take place at the end of this year or the beginning of next year," Vaher said.
According to Vaher, at the moment the only option is to ask for the money back, because while in the case of procurements carried out by Estonian companies or Estonia itself one can be more flexible and make decisions independently, the use of foreign funds comes with very clear restrictions set by the European Union.
"One of the restrictions is time, and that time is up. This means that we had to carry out the procurement within a certain time. Delivery had to take place at specific times, and if that did not happen, then that was one of the reasons why we had to terminate the contract. But the most important reason was still that the goods they showed us and that we have gone to inspect with experts are simply not what Ukraine would want for winning its war," Vaher explained.
Poor-quality production artillery shells
It recently emerged that Estonia has paid a total of 70 million euros for shells intended for Ukraine that the country has not received. Due to poor‑quality production, using the shell may be dangerous or may not fulfill its purpose. In Vaher's assessment, it was not a wise decision to conclude a contract and make advance payments to a shelf company whose purpose is simply to operate in the European Union and mediate something. Upon taking office as head of RKIK, Vaher said he had no choice but to begin defending their rights.
"These contracts were already at such a stage at that moment that there was not much to do, and it was necessary to begin defending our rights. Therefore, it was clear to me in the first days that there was no escape here. Negotiations must be ended with dignity and politeness, but to defend our rights we must go to court. We worked for that, and either in March or April we began the court process," Vaher said.
Many employees who concluded the contracts at the time have since left RKIK. The same applies to the previous director general, Magnus‑Valdemar Saar.

"How they thought and what was the basis for decisions in such behavior is a matter for their conscience," Vaher said, adding that he does not know whether Saar left because of the problematic contracts.
In Vaher's assessment, the workload at RKIK was previously too large and the organization's management was different. There were too few decision‑makers, and the lack of multiple pairs of eyes could lead to mistakes. There was also no overview of why certain decisions were made and carried out at one moment or another.
Previous decisions not documented
"The National Audit Office also says today that our previous decisions at RKIK in 2024 and 2025 are not reproducible. We cannot find answers as to why we decided like this. The story that investigative journalism has unfolded — here we must say to journalists: good work — also clearly shows that our decisions and behavior are not documented. This must be done better," Vaher said.
Vaher admitted that he learned about the contracts in question on his first working day, and defense Minister Hanno Pevkur indicated that the situation must be addressed and rights defended.
"I chose the path that negotiations end and we no longer submit to these promises that yes, we will bring it soon, we are on Ukraine's side, and so on. I could do only one thing: defend our rights, because we must ensure assistance to Ukraine and the lawful use of money," the head of RKIK said.
On Tuesday, the Prosecutor's Office initiated criminal proceedings to investigate the administrative area of the Ministry of Defense, concerning circumstances addressed in both this year's and last year's National Audit Office audits. No one has been charged with a crime.
Minister of Defense Hanno Pevkur announced on Wednesday that he will resign. He had served as defense minister since 2022.
On Wednesday it emerged that Estonia sought to buy shells for Ukraine and paid a total of 70 million euros in advance to Indian businessmen who had reportedly never sold a single shell before.
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Editor: Johanna Alvin
Source: ERR interview by Martha-Beryl Grauberg











