Indian firm in Estonia arms deal has no dealings with defence ministry: Officials

The Indian firm allegedly linked to an artillery shells supply deal to Estonia for onward delivery to Ukraine has no dealings with the Ministry of Defence or the Indian armed forces, senior ministry officials said on Monday.

The clarification comes days after Estonian Defence Minister Hanno Pevkur resigned, taking political responsibility amid a controversy over a €70 million (approximately Rs 769 crore) ammunition procurement for Ukraine and wider criticism of financial management in the country’s defence establishment.

The procurement involved Italian-registered Datasel S.R.L., which was acquired by Indian company Neco Defence Munitions in 2024. Estonia’s Centre for Defence Investments made advance payments totalling about €70 million for artillery ammunition intended for Ukraine, with the purchase financed through the European Union’s European Peace Facility, Estonia’s public broadcaster ERR reported, citing an investigation by newspaper Eesti Ekspress.

The official added that there have been no dealings or supply orders from Indian armed forces or the Ministry of Defence, but they may have supplied to state police as claimed on their website. Jayaswal Neco Industries, the listed Indian steelmaker, has clarified that Datasel is not its subsidiary or associate.

Datasel is owned by Neco Defence Munitions, a separate promoter-owned entity, and Jayaswal Neco Industries said the Estonian procurement dispute has no financial impact on its books, according to a company clarification reported on September 4.

According to the Estonian reports, neither Datasel nor Neco had previously produced artillery shells when the contracts were signed.