LONDON: Leading British defense contractor BAE Systems said German moves to block exports to Saudi Arabia could damage its major deals with the country and weigh on its financial performance.
BAE said that it was reliant on the approval of export licenses by a number of governments to continue supplies to Saudi Arabia.
“The position on export licensing currently adopted by the German government may affect the group’s ability to provide the required capability to the Kingdom,” it said in its annual financial results on Thursday, adding it was working with British authorities to minimize the risk.
Germany is part of the consortium that builds the Eurofighter Typhoon, a fighter jet that BAE has sold to Saudi Arabia, through Airbus and MTU Aero Engines.
Germany’s government is trying to halt weapons exports to Saudi Arabia after the killing of Saudi journalist Jamal Khashoggi last October but Britain has urged the country to exempt big defense projects or face damage to its commercial credibility.
BAE makes 14 percent of its annual sales from selling Typhoons and other arms to Saudi Arabia. “The issue of German licenses is a political issue and as such requires it to be resolved at the political level ... To date, the impact has been minimal, but over time, it could become more difficult,” Chief Executive Charles Woodburn said.
BAE warns of risk from German stance on Saudi arms
BAE warns of risk from German stance on Saudi arms
- BAE makes 14 percent of its annual sales from selling Typhoons and other arms to Saudi Arabia
- Germany is part of the consortium that builds the Eurofighter Typhoon, a fighter jet that BAE has sold to Saudi Arabia
