Germany scraps major arms deal with Russia

German Minister for Economic Affairs and Energy Sigmar Gabriel. REUTERS Photo

Germany has stopped a major deal to provide a fully equipped training camp to Russian forces due to the crisis in Ukraine, the government said Monday.
      
Vice Chancellor and Economy Minister Sigmar Gabriel said he has withdrawn his authorisation for the training camp project, which had already been put on hold in March after Moscow's annexation of Ukraine's Crimea region.
      
He confirmed a report in the daily Sueddeutsche Zeitung citing the decision to scrap the contract, reportedly valued at 100 million euros ($134 million).
      
"We consider it indefensible in the current situation," a ministry spokeswoman said later when asked about the move.
      
Russia previously called the decision to halt the arms deal "unconstructive," accusing Berlin of acting under pressure from the United States.
      
German defence group Rheinmetall, the contractors for the military training camp, had said in March that the company would fulfil its contractual obligations to build the centre, which German media said would train 30,000 soldiers a year.
      
The camp was to have been built in the Volga region, and was scheduled to open later this year.
      
Rheinmetall could not immediately be reached for comment.
      
The ministry spokeswoman said that the government was in contact with the firm, which will have the opportunity to claim financial damages for the scrapping of the contract.
      
By stopping the deal, Germany goes beyond economic sanctions against Russia agreed last week by the European Union.
      
Those restrictions ban arms exports to Russia but do not cover existing contracts, including a 1.2-billion-euro deal by...

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