Germany on Monday cancelled a contract to supply Russia with a €120m combat simulation centre, amid an escalating row among European partners about arms sales to Moscow, including France’s €1.2bn warship contract.
In Russia the decision by Germany to withdraw authorisation for the three-year contract is expected to accelerate moves to cut dependence on imported military technology, which have already been boosted by last week’s EU imposition of sector-wide sanctions in defence, finance and energy equipment.
Berlin’s intervention could also raise fresh questions about France’s €1.2bn contract with Russia for two Mistral helicopter carriers, the first of which is due for delivery this autumn and the second in 2015.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.