The daily Süddeutsche Zeitung newspaper reported on Monday that the German government had canceled a deal to provide Russian forces with a fully-equipped combat training camp, Censor.NET reports, citing Deutsche Welle.
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The newspaper said the Economy ministry revoked permission for the camp to be built, granted by Germany's previous coalition government to Dusseldorf-based defense company Rheinmetall. It claimed to have seen a "written document" that includes the decision to scrap the project, worth some 100 million euros ($134 million).
Vice Chancellor and Economic Affairs Minister Sigmar Gabriel already put the deal on hold in March in response to Russia's annexation of Crimea. At the time, the federal government described such a potential export as unacceptable "in the current situation."
Russia, though, accused Germany of acting under pressure from the United States and called March's decision "unconstructive."
German media says the military training camp would train up to 30,000 soldiers per year, using sophisticated simulation tools.
The report comes almost a week after the sanctions against Russia were imposed by the EU and the US - targeting its energy, defense and finance industries - in hopes the harsher measures would force Moscow to reduce its support for rebels fighting in eastern Ukraine.