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Russian Defense Ministry informs Germany's Rheinmetall of financial claims

December 19, 2014, 9:17 UTC+3
The German side suspended a major Russian military contract on supplying equipment to a training center at Mulino, east of Moscow
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© EPA/MATTHIAS BALK

MOSCOW, December 19. /TASS/. Russia’s Defense Ministry has notified German defense contractor Rheinmetall of financial claims for suspending a major Russian military contract on supplying equipment to a training center at Mulino, east of Moscow, a deputy head of the Collegium of the Military-Industrial Commission said in an interview with TASS on Friday.

“The decision has been taken and the work is ongoing. The Defense Ministry has already sent the first notifications and documents to the German side,” Oleg Bochkaryov said.

The German manufacturer was to provide combat simulation technology to the Mulino center that was expected to improve the combat skills of up to 30,000 servicemen a year. The deal was estimated at €120 million.

Infographics Strengthening Russia’s defense capability in 2014 Strengthening Russia’s defense capability in 2014
Modernization and reorganization of the Russia’s Armed Forces in 2014. Infographics by TASS
In March, the German government announced freeze of cooperation on this project amid the events in Ukraine. Under the contract, signed in early 2011, the center was to have been put into operation in June this year.

Bochkaryov said if the construction of a new training center similar to the one in Mulino is launched, Russia will not cooperate with Rheinmetall. “Of course, if there is a new training center, it will be fully domestic, as we will no more play this game with Rheinmetall,” he stressed.

In August, Russian Deputy Defense Minister Yury Borisov said a St. Petersburg-based transport IT-solution company, Tranzas might supply some laser simulators needed for the combat training center as the German weapon concern refused to implement the deal.

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