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Malaysia seeks $251 million from Kongsberg after Norway scuttles missile deal

By The Associated Press

KUALA LUMPUR, Malaysia (AP) — Malaysia’s government said Tuesday that it was seeking $251 million in compensation from Norwegian company Kongsberg Defense & Aerospace AS after Norway abruptly revoked an export permit that scuttled a naval missile defense deal for Malaysia’s combat ships.

Defense Minister Mohamed Khaled Nordin said that the government had issued a formal notice of demand to Kongsberg following the cancellation, which blocked the delivery of the Naval Strike Missile system, or NSM, and launcher components that Malaysia had already largely paid for.

“We are claiming both direct and indirect costs. The direct cost amounts to 126 million euros ($146 million) which has already been paid,” he said. “We are also seeking substantial indirect costs, bringing the total claim to about 1 billion ringgit ($251 million).”

The indirect costs included the removal of missile mounting systems already installed on the navy’s vessels, as well as the integration of replacement systems, he said.

Malaysia inked a deal for the NSM anti-ship missile system in 2018 for Kongsberg to arm Malaysia’s new class of littoral combat ships under a broader naval modernization program.

Norway’s foreign ministry said that the government has strengthened oversight, with sales of its most sensitive defense technologies now restricted to the country’s allies and closest partners. The cancellation sparked sharp protests from the Malaysian government.

Khaled described the move as a serious breach of trust that could undermine confidence in international defense procurement deals.

“What happened to us is not just a defense procurement issue, but reflects an erosion of trust in international relations,” he said. “When such commitments can be unilaterally revoked, confidence in the entire system begins to erode.”

In a response to queries from The Associated Press, Norway’s foreign ministry said it was unable to comment on individual cases due to confidentiality obligations under the Export Control Act. Kongsberg officials couldn’t be immediately reached for comment.

Iran attacks Bahrain and Kuwait following US strikes, threatens to end talks to end the war

By The Associated Press
DUBAI, United Arab Emirates (AP) — Iran's paramilitary Revolutionary Guard launched drone and missile attacks Sunday targeting Bahrain and Kuwait in response to U.S. airstrikes that hit the Islamic Republic, and threatened a “complete halt” could come to negotiations to end the war if Washington continues its attacks. Efforts to reopen the Strait of Hormuz, the narrow mouth of the Persian Gulf that once carried a fifth of the world's oil and natural gas, without Iran's direct oversight sparked the crossfire now gripping the region. A multinational maritime body overseen by the U.S. Navy said Saturday that it would expand a route near Oman in the Strait of Hormuz to allow for both inbound and outbound traffic — setting up a new flashpoint with Tehran. Iran insists it alone must govern the strait after the war, upending decades of the world considering that the strait was international waters free for all, despite its sitting in Iran and Oman's territorial waters. Tehran has twice attacked vessels going through the Oman route, backed by a United Nations agency, in recent days. Early Sunday, the U.S. military’s Central Command said it struck Iranian military “surveillance infrastructure, communication systems, air defense sites, drone storage facilities and minelayer capabilities” following an attack on a ship at sea early Saturday morning. That ship, the Panamanian-flagged tanker Kiku, carried crude oil for the state-run energy company of Qatar, a key negotiator between Iran and the United States.
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