Paris proposes Moscow to terminate contract of Mistral carriers

Paris proposes Moscow to terminate contract of Mistral carriers

France has drafted and sent Moscow proposals on the termination of the French-Russian agreement on construction of Mistral helicopter carriers for Russia, the Kommersant newspaper reports, with reference to sources in the sphere of military-technical cooperation.


The newspaper reminds that the first document was signed on January 25, 2011 by the Deputy Prime Minister Igor Sechin and the Defense Minister Alain Juppe, and the contract to build the Mistral amphibious assault ships for the Russian navy between Rosoboronexport and shipbuilding company DCNS was signed on June 17, 2011.

These proposals "imply that about 785 million euros will be returned to Russia, which the country will only be able to obtain after its government issues written permission to sell the vessels to any third party without any reservations," the newspaper said. According to Kommersant, "Moscow does not agree with such an approach," assesses its "expenditures and losses in connection with the broken contract at 1.163 billion euros and does not intend to issue any permits for re-export until the money is returned."

"The option with the return of the sum mentioned in the French proposal does not suit us at all, and Deputy Prime Minister Dmitry Rogozin has already informed French Defense and National Security Secretary General Louis Gautier, authorized to hold talks on their part, of that. They are now preparing their arguments," the source said.

According to the French weekly Le Point, annulment of the deal to supply Mistrals to Russia may cost France 2-5 billion euros in connection with failure to implement the contract.

 

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