Germany Cancels $134 Million Arms Deal With Russia

Germany has cancelled a major arms deal with Russia citing the Ukraine crisis as its main reason, according to reports.

The daily Süddeutsche Zeitung newspaper reported on Monday that the German government had canceled a deal to provide Russian forces with a fully-equipped combat training camp. 

According to the report, the Economy ministry revoked permission for the camp to be built, granted by Germany's previous coalition government to Dusseldorf-based defense company Rheinmetall. It claimed to have seen a "written document" that includes the decision to scrap the project, worth some 100 million euros ($134 million). 

Vice Chancellor and Economic Affairs Minister Sigmar Gabriel already put the deal on hold in March in response to Russia's annexation of Crimea. At the time, the federal government described such a potential export as unacceptable "in the current situation." 

Russia, though, accused Germany of acting under pressure from the United States and called March's decision "unconstructive", according to Deutsche Welle German radio. 

The report comes almost a week after the US and EU imposed broad sanctions on Russia - targeting its energy, defense and finance industries - in hopes the harsher measures would force Moscow to reduce its support for rebels fighting in eastern Ukraine.