Germany scraps major arms deal with Russia: report

Germany scraps major arms deal with Russia: report
German Minister for Economic Affairs and Energy Sigmar Gabriel attends a news conference in Berlin, July 21, 2014.

BERLIN - Germany has decided to scrap a major deal to provide a fully-equipped training camp to Russian forces due to the ongoing crisis in Ukraine, according to a newspaper report Monday.

Vice Chancellor and Economy Minister Sigmar Gabriel has "withdrawn his authorisation" for the training camp project, which had already been halted in March due to Moscow's "indefensible" annexation of Ukraine's Crimea region.

The Sueddeutsche Zeitung daily said it had seen a "written document" including the decision to scrap the 100 million euro (S$170 million) contract.

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.

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