German reaction to Saudi Arabia over Jamal Khashoggi murder undermines European defence industry. German government that had issued embargo to Saudi Arabia until March 9th, has decided to extent it. The decision risks escalation of a growing dispute with France and the United Kingdom over sales of jointly produced weapons.

Foreign Minister Heiko Maas made the announcement during a news conference with his Danish counterpart, Anders Samuelsen, in Berlin on Wednesday.

Germany’s decision causes new negotiations over boosting the European Union’s defence capabilities as Saudi Arabia is the world’s third-largest spender on defence, even when only a relatively small percentage of the overall product is made in Germany. French and British governments claim this has led to financial losses for their domestic defence industries.

Extension of the ban covers new export licenses. In cases where the government has previously approved a company’s export petition, the equipment would not reach the delivery stage, Maas said.