Published 15 days ago • loading... • Updated 13 days ago
Malaysia seeks $251 million from Kongsberg after Norway scuttles missile deal
Malaysia says Norway’s export rollback blocked missile deliveries and forced it to seek compensation for direct and indirect costs.
On Tuesday, Defense Minister Mohamed Khaled Nordin announced Malaysia is seeking $251 million in compensation from Kongsberg Defence & Aerospace after Norway abruptly revoked export permits for a naval missile system.
Oslo's foreign ministry confirmed certain export licenses were revoked solely due to Norway's application of strict export control regulations, calling the situation regrettable for Malaysia.
Khaled stated the compensation claim includes $146 million in direct costs already paid for equipment, plus indirect expenses for removing missile mounting systems from navy vessels.
Calling the decision "unilateral and unacceptable," Malaysian Prime Minister Anwar Ibrahim raised his "vehement objection" in a phone call with Norwegian counterpart Jonas Gahr Støre last week.
Later this month, Khaled will meet Norwegian counterpart Tore O. Sandvik in Singapore during the annual Shangri-La Dialogue to discuss the "reliability of international commitment" and erosion of trust.
The arming contract between Malaysia and Norway is turning into a diplomatic crisis. Kuala Lumpur claims more than $251 million after the revocation of the missile system's export licences.