Germany Cancels Defense Contract With Russia

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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza