The Indian businessmen-owned company is in a legal dispute with Estonia over a contract to supply tens of millions of euros' worth of ammunition intended for Ukraine. Herem said he only saw Datasel's latest proposal that morning and thus could not disclose any details.

"I have seen it and we are considering it," Herem said at Thursday's government press conference, noting that Estonia is reviewing the proposal themselves, discussing it with Ukraine and proceeding from there.

"It may ultimately be possible that the Ukrainians will still get the ammunition they need for that amount," he added.

The Estonian Center for Defense Investments (ECDI) rejected an earlier settlement proposal from Datasel. In mid-September, the company proposed forming a joint working group with the government, some MPs and the ECDI to resolve the dispute, but the ECDI said the proposal came too late.

The ECDI signed a roughly €70 million ammunition contract with Datasel in 2024, paying about €60 million up front. The ammunition delivered failed to meet requirements, although Datasel has disputed concerns about its quality.

The European Public Prosecutor's Office (EPPO) launched an investigation into the transactions last month.

The procurement was funded through the European Peace Facility (EPF), not by Estonian taxpayers, with the EU-level funding including proceeds from frozen Russian assets.

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