Germany cancels major arms deal with Russia: report

4 August 2014 11:05
(QHA) -

German government had canceled a deal to provide Russian forces with a fully-equipped combat training camp, DW reports, quoting daily Süddeutsche Zeitung newspaper.

The newspaper said the Economy ministry revoked permission for the camp to be built, granted by Germany's previous coalition government to Dusseldorf-based defense company Rheinmetall. It claimed to have seen a "written document" that includes the decision to scrap the project, worth some 100 million euros ($134 million).

The report comes almost a week after the US and EU imposed broad sanctions on Russia - targeting its energy, defense and finance over crisis in Ukraine.

The EU's sanctions include an arms embargo, a ban on exports of some sensitive technologies and a ban on the sale of bonds and equities by state-owned Russian banks in European capital markets.