Russia: The German Government has permanently barred Rheinmetall from delivering combat simulation equipment to Russia, in response to the latter's role in the ongoing conflict in eastern Ukraine. The deal was initially blocked by the German Economic Affairs and Energy Minister Sigmar Gabriel in March.
Signed in 2011, the EURO 100million contract required Rhienmetall to supply a live combat simulation centre to the Russian Army that is capable of training up to 30,000 soldiers annually. The contract also included technical implementation of aspects, including the commissioning of the 500km² simulation-supported training centre in Mulino in the Volga region and quality assurance. An Economy Ministry spokesperson said Germany is yet to ship most of the combat simulation equipment to Russia and has ensured that the incomplete system is not capable of being used by Moscow.
Spokesperson from Rheinmetall said that it was in talks with the government to find a solution but refused to comment on the contract details and whether it might claim compensation. The Dusseldorf-based defence company had earlier pledged to honour its contractual obligations with Russia.
Source: The Moscow Times