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India's Defence Ministry Denies Links to Firm in Estonia's Ukraine Arms Deal Controversy
Senior officials from India's Ministry of Defence stated on Monday that the Indian company allegedly connected to a controversial artillery shell supply arrangement with Estonia has no association with the ministry or the country's armed forces. The statement follows the resignation of Estonian Defence Minister Hanno Pevkur last week, who stepped down citing political accountability over a €70 million (roughly Rs 769 crore) ammunition procurement deal for Ukraine. His resignation also came amid broader concerns regarding financial oversight within Estonia's defence sector. At the center of the dispute is Italian-registered company Datasel S.R.L., which was purchased by Indian firm Neco Defence Munitions in 2024. According to Estonia's public broadcaster ERR, which cited an investigation by newspaper Eesti Ekspress, Estonia's Centre for Defence Investments had made advance payments amounting to approximately €70 million for artillery ammunition destined for Ukraine. The deal was funded through the European Union's European Peace Facility. Indian defence ministry officials explained that Neco Defence Munitions falls under a well-established steel manufacturing group based in Nagpur, owned by Anand Jaiswal and Siddharth Jaiswal. An official noted that the company had recently acquired Datasel, a small Italian firm involved in small arms and ammunition production, and operates a manufacturing facility in Romania under a contract to fill artillery shells for delivery to Estonia, which were meant for onward transfer to Ukraine. The official further clarified that there have been no supply orders or business dealings between this company and India's armed forces or defence ministry, though the firm may have supplied products to state police forces, as indicated on its website. Separately, Jayaswal Neco Industries, a publicly listed Indian steel manufacturer, issued a clarification stating that Datasel is neither its subsidiary nor an associate company. The company said Datasel is owned by Neco Defence Munitions, a distinct entity under separate promoter ownership, and confirmed that the Estonian procurement issue would have no financial bearing on its accounts, according to a clarification the company issued on September 4. Reports from Estonia also indicated that neither Datasel nor Neco Defence Munitions had prior experience manufacturing artillery shells at the time the contracts were finalized.