Russia is demanding €47 million from Rheinmetall for a contract that it itself terminated due to the occupation of Crimea
This has been reported by Russian media, citing documents from the Moscow Arbitration Court.
The lawsuit was filed by the Russian Military Prosecutor’s Office and the company ‘Garnizon’, which is subordinate to the Russian Ministry of Defence. The Russian side is demanding that the contract be officially declared terminated and that tens of millions of euros be recovered from the German manufacturer.
This concerns an agreement signed back in 2011 between Rheinmetall and the Russian company ‘Oboronservis’. The German firm was to build a modern combat training centre for the ground forces in Mulino, Nizhny Novgorod Oblast, and supply laser simulation systems for combat operations.
Construction was scheduled to be completed by mid-2014.
However, following the occupation of Crimea, Germany reviewed its policy on military-technical cooperation with Russia and revoked Rheinmetall’s authorisation to participate in the project. Berlin halted the export of defence technologies to Russia as part of its sanctions policy.
Thus, it was the Kremlin’s actions in Crimea that led to the contract being scrapped.
This is not Moscow’s first attempt to secure compensation. Previously, the Russian Ministry of Defence had already taken the matter to court in Switzerland, but the Russian claims were rejected there.
Even Russian lawyers acknowledge that the actual recovery of funds from the German company is unlikely.
For Rheinmetall, this lawsuit is unlikely to pose a serious financial threat. Instead, it has become yet another example of how Russia is attempting to legally challenge the consequences of the sanctions imposed following its own aggression against Ukraine.
It is interesting that the lawsuit against Rheinmetall has been filed at this very moment, when the company has become one of Ukraine’s key partners in the defence industry and is implementing a number of joint projects with Kyiv.
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