Russia targets Rheinmetall with multimillion-euro court demand
Production of the Leopard 2 tank at the Rheinmetall plant (Photo: Getty Images)
Russia is trying to recover over €47 million from the German defense giant Rheinmetall. The reason is a 12-year-old contract that Berlin terminated due to the start of its aggression against Ukraine, according to Russian media.
The Moscow military prosecutor's office and JSC Garrison are demanding compensation for the disruption of a major project. It concerns the construction of a combat training center for the Ground Forces in Mulino, near Nizhny Novgorod. The lawsuit is already before the Arbitration Court of Moscow.
The case is being heard in closed session. The plaintiffs want the contract officially declared terminated to support their financial claims.
History of the contract and laser shooting simulators
The agreement between Rheinmetall and the Russian company Oboronservis was signed in 2011, and the two companies agreed to cooperate. The German side was to supply unique equipment, namely:
- Real‑condition training systems;
- Provide systems engineering and quality control;
- Equip the training ground by mid‑2014;
- Sell laser shooting simulators for infantry.
The German concern was to create one of the most modern training centers for Russia, but the aggressor's plans were thwarted by the international reaction to the occupation of Crimea.
How sanctions over Crimea stopped the construction
In 2014, Germany took a hard line: the German government immediately banned the export of defense technologies to Russia. The permit for Rheinmetall to participate in the construction in Mulino was canceled, and the project stalled.
The Russians had already tried to obtain the money earlier. The Russian Ministry of Defense filed a lawsuit in a Swiss court but lost the case. Swiss justice left Moscow's claims unsatisfied.
Now the Russian authorities are trying to find justice in their own court. However, experts are skeptical: even if the Moscow court rules in favor of the prosecutor's office, the funds cannot be recovered because a Russian court decision would have no force in Europe.
What other news about Rheinmetall
Amid the threats from Russia, the German army has ordered over two thousand all‑wheel‑drive trucks from Rheinmetall. The contract value is about one billion euros.
Earlier, the German concern Rheinmetall stated that it highly appreciates the level of Ukrainian developments and is delighted with the country's innovations.
The company is also strengthening its position in the Black Sea. Rheinmetall plans to acquire the Mangalia shipyard in Romania to expand its maritime production.
