Rheinmetall plans to sue Germany over Saudi arms embargo -Spiegel
BERLIN, Jan 20 (Reuters) - German weapons maker Rheinmetall
plans to sue the government over its decision to stop
all arms exports to Saudi Arabia after the killing of journalist
Jamal Khashoggi, Spiegel Online reported on Sunday.
Citing a letter to the Economy Ministry, Spiegel said
Rheinmetall intends to sue the German government for loss of
revenue if the export suspension continues.
Berlin suspended approval of future export licences to Saudi
Arabia in October and in November said it had worked with
industry to halt shipments of arms sales that were already
No specific timetable was given at the time, but industry
sources told Reuters an agreement had been struck to revisit the
matter by mid-January.
Last week the economy ministry said the government still had
no intention of approving arms exports to Saudi Arabia.
Without citing sources, Spiegel said Rheinmetall believes it
can claim for compensation because the government's decision
affected exports that had already been approved.
The company's management fears shareholders could sue
Rheinmetall if the company does not demand compensation for the
losses, Spiegel added.
"We cannot comment on individual decisions, possible
revocations or individual measures," the Economy Ministry said
in an emailed statement.
A spokesman for Rheinmetall declined to comment on the
Spiegel said goods worth up to 2 billion euros ($2.3
billion) are affected by the export suspension, including four
Cobra radar systems built by a consortium that includes France's
Thales, Airbus and Lockheed Martin of
the United States.
($1 = 0.8797 euros)
(Reporting by Caroline Copley and Thorsten Severin
Editing by David Goodman)
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