SCHIPHOL-RIJK (dpa-AFX) - Aerospace and defense major Airbus is considering suing the German government over the ban on arms exports to Saudi Arabia, Reuters reported citing people familiar with the matter. The company noted that due to the freeze on exports, it not able to complete a border security system for Saudi Arabia. Airbus shares were losing around 2 percent in the morning trading.
Following the killing of journalist Jamal Khashoggi, Germany in October last year decided to reject future arms exports licenses to Saudi Arabia. The country also decided to freeze deliveries of already approved equipment. In March, Germany extended the ban until September-end, with a few exceptions.
As per the Reuters report, Airbus is seeking to take legal action against Germany over the security system for the border between Saudi Arabia and Yemen. The security system contract consists radars, drones and command posts for guards, and was worth around 3 billion euros or around $3.36 billion.
Airbus reportedly had to make risk provisions of 300 million euros due to non-completion of the contract.
Airbus shares are currently trading at 116.98 euros, down 2.16 percent.
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