Investigations into tank purchases – The Ruag case: What you need to know – News


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The chaos surrounding the Ruag tank deal now contains numerous episodes. This is the overview.

What is it about? The federal armaments company, Ruag, wanted to sell Leopard 1 tanks to the German armaments group Rheinmetall. First these should be brought to Germany, then to the Ukraine. Ruag bought it in Italy seven years ago. The combat equipment, some of which is more than 50 years old and once produced in Germany, is located on a company site in northern Italy.

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Leopard 1 tanks are prepared for the Ukraine: Here is an example from Flensburg.

Keystone/DANIEL REINHARDT

Despite a negative preliminary decision from the federal authorities, RUAG submitted an official export application at the end of April 2023 in order to be able to sell the tanks to Germany. The Federal Council did not give this approval at the end of June. The deal violates Ukraine sanctions and the Swiss War Material Act.

Management crisis at Ruag: CEO resigns


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Parallel to the tank affair, Ruag is also dealing with a leadership crisis. At the beginning of August, Brigitte Beck gave up her position as CEO. Critical statements about Swiss arms export policy were fatal to her.

Where is the problem? Questions are raised as to the exact circumstances under which the Ruag acquired the tanks. In addition, there were gross discrepancies in further deals with these tanks (see below). According to Ruag, they were bought as merchandise and as spare parts donors, wrote the DDPS. Defense Minister Viola Amherd also wants clarification on the signing of the purchase contract for the tanks with Rheinmetall on February 13th. At the time, Rheinmetall disclosed that the tanks were to be repaired and delivered to Ukraine. Both Amherd and Ruag have each initiated an external investigation.

What do you expect from the research? In the case of the failed deal with the final destination Ukraine, questions arise about the cooperation between Ruag and the federal government as its owner. The study is intended to show whether adjustments are needed on this point. It is also checked how the board of directors exercises its supervisory duty towards the management. The investigation, commissioned by RUAG itself, focuses on discrepancies in dealings with the Leopard 1 tanks. Not all connections are fully comprehensible, and there are still certain discrepancies, the company justified the examination in a statement.

Are there other problems? According to Ruag, the potential ownership claim of the German company Global Logistics Support GmbH (GLS) to 25 of these tanks must be clarified. GLS has had a cooperation agreement with RUAG for the German armaments market since 2014. In 2020, the GLS bought the Ruag 25 Leopard 1 at a ridiculous price, but did not pick up the tanks. The German company is currently demanding the surrender of the battle tanks. In addition, there are further monetary claims from GLS to Ruag – this in connection with the termination of the previous cooperation agreement. It is not yet known how Ruag will react to the demands of GLS.

The public prosecutor’s office in Verden, Germany, is investigating a former RUAG employee and other suspects, including charges of bribery in connection with RUAG tank engine transactions. Switzerland provides legal assistance. The affected ex-employee was involved in several transactions with the Leopard 1 and corresponding spare parts for RUAG. He denies any fault towards SRF.

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