Russia Sues Germany Over Mulino Training Ground Contract Disruption

Russian first deputy defense minister Arkady Bakhin said that Russia sued German company Rheinmetall AG over the disruption of the $138-million contract to build a military training range for 30,000 soldiers in Mulino, near Central Russia's Nizhny Novgorod.

MOSCOW, (Sputnik) – Russia has sued Germany over the disruption of the $138-million contract to build an inter-branch military training center in Central Russia's Mulino, Russia's first deputy defense minister said Wednesday.

In August 2014, Germany prohibited its defense giant Rheinmetall from continuing to take part in the project due to Western sanctions imposed on Russia over the crisis in Ukraine.

"We are pushing for fines, and these fines are now being considered in court," Gen. Arkady Bakhin said without giving any further details about the lawsuit.

Russia and Rheinmetall AG, one of Europe's largest defense contractors, signed a deal in 2011 to build a military training range for 30,000 soldiers in Mulino, near the major city of Nizhny Novgorod. Construction was due to be completed in 2014.

Bakhin gave assurances that the Mulino training center would not suffer from the Germany company's breach of contract, as Russia is capable of producing laser simulators for weapons itself.

The European Union, alongside the United States, has introduced several rounds of economic sanctions against Russia over its reunification with Crimea and alleged involvement in the armed conflict in eastern Ukraine. Moscow has denied all claims as groundless and counterproductive.

The sanctions are aimed in particular against Russia's traditionally strong defense and energy sectors.