RUSSIA-FRANCE/MISTRALS France to reimburse Russia in deal over undelivered warships

Record ID: 144921

  • Title: RUSSIA-FRANCE/MISTRALS France to reimburse Russia in deal over undelivered warships
  • Date: 5th August 2015
  • Summary: SAINT-NAZAIRE, FRANCE (FILE - SEPTEMBER 4, 2014) (REUTERS) VARIOUS OF MISTRAL HELICOPTER CARRIER VARIOUS OF FRENCH FLAG FLYING VARIOUS OF HULL OF SHIP READING (Russian): "VLADIVOSTOK" SHIP IN DOCK
  • Embargoed: 20th August 2015 13:00
  • Keywords:
  • Location: France
  • Country: France
  • Topics: General
  • Reuters ID: LVA9Z79AG6KBL6O8L05YWNUO6RPG
  • Aspect Ratio: 16:9
  • Story Text: France is to reimburse Russia all advance payments made for the Mistral helicopter carrier warship contract suspended by the French government last year, Moscow and Paris announced in coordinated statements on Wednesday (August 5).
    French President Francois Hollande reversed his decision on the contract, dating from 2011, after coming under pressure from his Western allies over Russia's role in the Ukraine crisis.
    In exchange for the reimbursements, France will have full freedom to do whatever it wants with the two undelivered vessels, which contain some Russian technology, said statements from Hollande's office and Russian President Vladimir Putin.
    Neither side revealed the actual amount repaid, although a statement from the Kremlin said "France has already transferred these funds".
    A Russian source close to the talks told Reuters in May that Russia was demanding 1.163 billion euros ($1.27 billion).
    Both statements said the talks had been conducted "in a friendly and open atmosphere" and that the matter was now closed.
    Now France has to decide what to do with the ships.
    Their builder, state-backed DCNS, said last month it was spending at least 1 million euros ($1.1 million) a month to hold on to them.
    Canada and Singapore have been mooted as potential buyers, as has Egypt which has just bought French fighter jets and naval frigates.
    The long-discussed French sale was Moscow's first major Western arms purchase in the two decades since the fall of the Soviet Union. Nicolas Sarkozy, who was French President when the order was struck, had hailed the signing of the contract as evidence the Cold War was over.
    Paris initially resisted cancelling the despatch of the first Mistral, hitting back by accusing its detractors of hypocrisy over their own links with Russia.
    But when accusations surfaced last August that Russia was sending thousands of troops into southeast Ukraine to support pro-Moscow separatist rebels, Hollande changed tack. The delivery has been on hold ever since.
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register