Russia to sue German company for breach of military contract

MOSCOW -- Russia's Defense Ministry is preparing to sue a German automotive parts supplier and military technology company for its suspended cooperation on construction of a training center in central Russia, Deputy Defense Minister Yuri Borisov said earlier.

Orders have been given to launch a court case against Rheinmetall and Russia will defend its interests under the conditions of the contract, Borisov said, adding that Russia could now demand reimbursement.

He also stressed that the Mulino combat training center will not be affected by the incident as Russian-made combat simulator equipment will be installed instead of what was to be imported from Germany.

"We won't lose much. The center will not be left without military training and everything will be equipped," Borisov said.

Germany's Economy Ministry confirmed on Monday it had blocked the deal "in light of the EU sanctions" on Russia over the tense situation in Ukraine.

Yury Petrov, deputy chief of the Defense Ministry's combat training department, said Tuesday the center will be in a testing phase from Sep. 1 and ready to go online by Dec. 1.

According to media reports, Rheinmetall's deal to deliver simulation technology to the center was worth about 100 million euros (138 million U.S. dollars). It was ordered about two years ago and due for completion this year. The complete training center should be able to train 30,000 troops per year.