Europe Is Starting To Suspend It's Defense Contracts With Russia

French navy command ship Mistral. © AFP 2014/ Eric Feferberg

France Should Return Money if Warship Deal Cancelled – Rogozin -- RIA Novsoti

MOSCOW, March 20 (RIA Novosti) – France should either fulfill its contract obligations under a June 2011 contract to deliver two Mistral-class warships to the Russian navy or return the money, a Russian deputy premier said on Wednesday.

French Foreign Minister Laurent Fabius said on Monday that Paris will consider canceling the 1.2-billion-euro deal if Moscow provokes further escalation in Ukraine.

The remarks came after the US and EU imposed sanctions on senior Russian officials following a referendum in Ukraine's Crimea in which voters overwhelmingly supported secession and reunification with Russia.

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Germany Suspends Rheinmetall Military Contract With Russia -- Deutsche Welle

German Economy Minister Sigmar Gabriel has halted a major Russian military contract for the Rheinmetall defense technology group, at least temporarily, in the wake of the ongoing crisis in Crimea.

The economy ministry led by Social Democrat Sigmar Gabriel said on Wednesday evening that it would suspend a planned defense contract in Russia for German firm Rheinmetall, owing to developments in Crimea.

"Given the current situation, the German government considers the construction of a military training facility in Russia to be inappropriate," Gabriel's ministry told the German DPA news agency on Wednesday.

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My Comment: These are billion dollar contracts .... this is going to hurt European defense contractors.