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Germany Hampers Russian Deal with German Company Rheinmetall - Reports

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The German government has stopped the €100 million ($134 million) joint project between Russia’s Defense Ministry and German automotive components and defense equipment manufacturer Rheinmetall, Sueddeutsche Zeitung reported on Monday.

MOSCOW, August 4 (RIA Novosti) - The German government has stopped the €100 million ($134 million) joint project between Russia’s Defense Ministry and German automotive components and defense equipment manufacturer Rheinmetall, Sueddeutsche Zeitung reported on Monday.

According to the newspaper, Sigmar Gabriel, German economic affairs and energy minister, revoked the former economy minister’s permission for Rheinmetall to build a combat training facility in the Russian city of Mulino.

The facility was supposed to start operating this year, with up to 30,000 troops training there annually.

The deal is canceled in light of the sanctions, imposed by the European Union against Russia.

Initially, German authorities intended only to suspend the deal, but these efforts failed. Now Rheinmetall could file a suit against the German government and demand reimbursement.

Earlier on, attempts to hinder another military-related deal between Russia and an EU member were made when the US and UK governments expressed their concerns over France, delivering Mistral warships to Russia. Despite their pressure, the French side said it would fulfill its contractual obligations.

Tags:
sanctions, defense equipment, Russia’s Defense Ministry
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