Far from just imposing sanctions on Russia that block future defence contracts it appears Germany is stepping above and beyond by halting Rheinmetall’s export of combat simulation gear to Russia

Berlin’s intention to stop the deal, flagged in March, has now been delivered in writing according to chatter on Rtrs

Rheinmetall have declined to comment on the details of the contract estimated at EUR 100mln, or on whether it might seek compensation from the govt.

And to keep the German/France war-of words pot boiling it’s worth noting here that France is pressing ahead with a EUR 1.2 bln contract to supply Russia with a mistral warship.

The impact of Russian sanctions on Germany has not gone unnoticed of late with both the IFO index and this morning’s Sentix index both citing sanctions as impacting heavily on business confidence.

Definitely a need for us all to keep an eye on the ongoing effect and it’s potential to undermine the euro further.