Germany has cancelled a major arms deal with Russia because of the ongoing Ukraine crisis, according to German media reports. The deal was already in question following the annexation of Crimea.
Soddeutsche Zeitung daily newspaper said the German government had cancelled the deal to provide Russian forces with a fully-equipped combat training camp.
The newspaper said the Economy Ministry revoked permission for the camp to be built, granted by Germany's previous coalition government to Dusseldorf-based defense company Rheinmetall. It claimed to have seen a “written document” that includes the decision to scrap the project, worth some 100 Million Euros ($134 Million).
Vice Chancellor and Economic Affairs Minister Sigmar Gabriel already put the deal on hold in March in response to Russia's annexation of Crimea. At the time, the federal government described such a potential export as unacceptable “in the current situation.”
Russia, though, accused Germany of acting under pressure from the United States and called March's decision “unconstructive.” German media says the military training camp would train up to 30,000 soldiers per year, using sophisticated simulation tools.
The report comes a week after the US and EU imposed broad sanctions on Russia - targeting its energy, defense and finance industries - in hopes the harsher measures would force Moscow to reduce its support for rebels fighting in eastern Ukraine.
