German halt in Saudi arms sales hurting UK industry - Hunt

Reuters  |  BERLIN 

(Reuters) - Britain has urged to exempt big defence projects from its efforts to halt arms sales to or face damage to its commercial credibility, the German magazine reported on Tuesday.

accounts for just under 2 percent of total Saudi arms imports, a small percentage internationally compared with the and Britain, but it makes components for other countries' export contracts. That includes a proposed 10-billion-pound deal for to buy 48 new Typhoon fighter jets from Britain.

"I am very concerned about the impact of the German government's decision on the British and European defence industry and the consequences for Europe's ability to fulfil its NATO commitments," British wrote in a letter to his German counterpart Heiko Maas, reported.

Hunt said British defence firms would not be able to fulfil several contracts with such as the model called Typhoon or the fighter jet, both of which are made with parts affected by the stop in deliveries to Saudi.

"It's essential that you immediately exempt large defence projects like the and from the weapons embargo," Hunt wrote, according to the magazine.

Not doing so will jeopardise Germany's credibility as a partner, he was quoted as saying.

has not seen the letter and a for the German foreign ministry declined to comment.

LOSSES

In his letter, Hunt also wrote that the German government's decision to halt arms exports to Saudi Arabia would result in a loss of 2.3 billion euros' worth of revenues for German defence firms by 2026.

A top said on Friday that the German halt in exports to Saudi Arabia was preventing Britain from completing the sale of 48 warplanes to Riyadh, and has delayed potential sales of other weapons such as the military transport.

Hunt's letter comes as Britain prepares to leave the on March 29, in the biggest shift in its commercial and diplomatic relations with the continent in decades. It has still to reach a deal with the EU on the terms of its exit, raising the risk of serious economic disruption.

(Reporting by Tassilo Hummel; Writing by Michelle Martin; Editing by and Gareth Jones)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 19 2019. 21:59 IST