The crisis in Crimea has put yet another French-Russian deal on hold. Renault Trucks Defense on Wednesday said its project to develop an armored infantry fighting vehicle together with a Russian manufacturer is on hold.
“The project is on hold because of the political situation, but that is not saying it has been halted,” RTD marketing director Marc Chassilian was quoted as saying.
Renault along with Uralvagonzavod is developing a wheeled combat vehicle named Atom and is at risk due to its use of a Volvo motor, according to reports.
RTD is owned by Swedish truck manufacturer Volvo AB, and the use of the Volvo motor requires Swedish government approval, according to AFP.
According to reports, there is a risk the government would now veto the deal as “its policy is clear: Swedish companies shouldn’t furnish the Russian military or defence industry with military equipment that risks being used against Swedish troops.”
RTD and UVZ signed in February 2013 at the Idex arms show in Abu Dhabi what the Russian company calls a cooperation agreement to jointly develop the Atos.
Neither company has provided any details.
Last September a mock-up of the Atom was shown at a Russian arms fair, according to several specialist publications.