Rheinmetall Threatens German Govt with Lawsuit over Saudi Arms Ban: Reports

Rheinmetall has threatened the German government with a multi-million dollar lawsuit to compensate for their losses caused due to the Chancellor Angela Merkel’s cabinet decision to stop military supplies to Saudi Arabia.

The cabinet approved arms embargo against Saudi Arabia following the murder of journalist Jamal Khashoggi at Riyadh’s consulate in Turkey and has also asked other nations to do the same, Sputnik reported Monday.

Angela Merkel’s cabinet stopped military supplies to Saudi Arabia and called on other countries to do the same following the murder of journalist Jamal Khashoggi at Riyadh’s consulate in Turkey.

German Der Spiegel weekly cited a company letter to the country’s Economy Ministry warning that they would file a complaint if the German authorities kept the ban in place.

According to the report, the reason behind Rheinmetall initiating the legal process was that the government stalled the deliveries that had been approved by the Federal Security Council, for political reasons.

In addition, the company’s management fears that shareholders could sue Rheinmetall if it does not demand compensation.The ministry has refused to comment on the reported threat saying that "the protection of trade and business secrets has a special status". Rheinmetall’s spokesperson wanted to "neither confirm nor deny" the information, Sputnik reported.

In contrast to Merkel’s government, allies France and the US refused to follow to Germany’s example and halt sales.

The outlet reports that Germany’s demand to clarify the details of Khashoggi’s death has not been fulfilled. While Germany and the EU insist that the investigation into the murder and prosecution of the perpetrators should be transparent, the reports suggest that Riyadh wants to hold secret trials.

Washington Post columnist Khashoggi was killed in the Saudi Consulate in Istanbul upon entering to obtain marriage-related documents on 2 October 2018. After two weeks of denials, the Saudi authorities admitted that Khashoggi had been killed in the consulate and his body dismembered on consulate grounds.

Riyadh insists that the killing had nothing to do with the Saudi royal family and the kingdom's de facto ruler, Crown Prince Mohammed bin Salman, describing the murder as a rogue operation.