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Norway Revokes Missile Export Licences to Malaysia, Prompting Diplomatic Row

Norway says tighter export controls now limit its most sensitive technologies to allies.

Visitors are gathered next to a display of an NSM Naval Strike Missile made by Norwegian company Kongsberg, presented at the Euronaval show, in Le Bourget, North of Paris, France, Wednesday Oct. 29, 2014. (AP Photo/Remy de la Mauviniere)
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Overview

  • Malaysia’s prime minister protested on Thursday in a call with Norway’s leader, calling the halt to Naval Strike Missile deliveries unilateral and unacceptable and saying the government will weigh legal action and compensation.
  • Norway’s foreign ministry confirms it revoked licences for the Naval Strike Missile and launchers on national security grounds and says stricter rules now govern exports of sensitive Norwegian-developed technology.
  • Malaysia’s defence minister says the country paid nearly 95 percent of the 2018 contract, valued at about €124 million, and that a separate launcher deal for two Lekiu-class frigates is also affected.
  • Officials in Kuala Lumpur say Norway invoked force majeure and told them NSM exports would be limited to NATO and partner nations, which excludes Malaysia.
  • Malaysia will keep its troubled Littoral Combat Ship program on track without the missiles for now and is studying replacements that fit the ships’ existing systems, while reporting points to possible U.S. curbs on a gyroscope used in the NSM as a factor.