The Spanish Defense Ministry has cancelled sales of laser-guided bombs to Saudi Arabia because of concerns over the Yemen war, agencies reported.
Madrid signed a contract with Riyadh for 400 bombs in 2015. But it will now back out of the deal and return the $10 million (£7.8million) they have already received.
Confirming the news, a Spanish government spokesperson declined to give any further details. There was no immediate response from Saudi authorities.
Last month the Defense Ministry said it had never sold arms that could be used against a civilian population, while condemning the killing of non-combatants in Yemen.
It added that it would review any possible sales that had not yet been closed and could be involved in attacks on civilians.
In April, Spain signed a framework agreement to sell warships to Saudi Arabia in a deal estimated to be worth around €1.8 billion (£1.6 billion).