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Defence contractor warns Canada of penalties over Saudi arms deal

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ANI Ottawa [Canada]
Last Updated : Dec 18 2018 | 7:30 AM IST

General Dynamics Land Systems-Canada has warned Canada that the nation would incur penalties to the tune of USD 747 million if they were to terminate the USD 15 billion arms deal with Saudi Arabia.

This comes a day after Canada's Prime Minister Justin Trudeau hinted at ending the deal signed with Saudi Arabia in 2015, in the wake of the killing of journalist Jamal Khashoggi.

"Were Canada to unilaterally terminate the contract, Canada would incur billions of dollars of liability to General Dynamics Land Systems-Canada," the manufacturer mentioned, according to Sputnik.

"Terminating the contract would have a significant negative impact on our highly skilled employees, our supply chain across Canada and the Canadian defence sector broadly," the company further said.

Earlier, footage revealing the Kingdom's usage of the arms supplied by Canada in the Yemen crisis came to the fore in 2017, sparking an international outcry.

The middle-eastern nation is currently in the midst of an international storm raked up by Khashoggi's death, with many believing in the Saudi Crown Prince Mohamed bin Salman's involvement in the scribe's killing despite constant and strong denials by the Kingdom.

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First Published: Dec 18 2018 | 7:30 AM IST

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