Berlin has slapped an embargo on all weapons shipments to the desert kingdom because of unanswered questions about the journalist’s death in the Saudi embassy in Istanbul. Rheinmettal has now written to the German Economy Ministry warnings it intends to sue for loss of revenue if the export suspension continues. Berlin suspended approval of future export licenses to Saudi Arabia in October and in November said it had worked with industry to halt shipments of arms sales that were already approved.
No specific timetable was given at the time but industry sources said an agreement had been struck to revisit the matter by mid-January.
Last week the Economy Ministry said the government still had no intention of approving arms exports to Saudi Arabia.
The sales ban affects more than £1.8bn of exports including four Cobra radar systems built by a consortium that includes France’s Thales, Airbus and Lockheed Martin of the US.
Rheinmetall believes it can claim for compensation because the government’s decision affected exports that had already been approved.
The company’s management fears shareholders could sue Rheinmetall if the company does not demand compensation for the losses.
An Economy Ministry spokesman said: “We cannot comment on individual decisions, possible revocations or individual measures.”
Rheinmetall also declined to comment.
German politicians are becoming increasingly uneasy with Berlin’s relationship with Riyadh due to the Khashoggi murder, Saudi Arabia’s role in the blood Yemen conflict and its dubious record on human rights giving cause for concern.
Mr Khashoggi, a well-known journalist and critic of the Saudi government, walked into the country’s consulate in Istanbul, to sign documents linked to his forthcoming marriage and was never seen again.
Saudi Arabia’s public prosecutor said the he was killed inside the building on the orders of a rogue intelligence officer.
Turkish authorities insist they have evidence, including gruesome audio recordings, showing the journalist was killed by a team of Saudi agents on orders that came from the highest levels. His body has not been found.
(Additional reporting by Monika Pallenberg)