Berlin, March 20 (IANS): Germany has halted a Russian military contract for a German defence technology company, authorities said.

The Germany's economy ministry said in a statement Wednesday that it would suspend a planned defence contract with Russia for the German firm Rheinmetall, reported Xinhua.

According to media reports, the Rheinmetall deal to deliver simulation technology to a Russian combat training centre is worth about 100 million euros ($138 million).

It was ordered about two years ago and due for completion this year. The complete training centre should be able to train 30,000 troops per year.

The ministry said the German government considers the export of the equipment to Russia "inappropriate in the current situation" and "the government is in contact with the company. At the moment no such export is planned".

The company will inform the government in time if deliveries are made "so that the government, if necessary, can take necessary measures in the light of further developments", the ministry added.