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France Paid EUR 1.1 BLN to Moscow For Mistral Contract Failure - Media
7.08.2015 16:11
France Paid EUR 1.1 BLN to Moscow For Mistral Contract Failure - Media
Photo Source: http://topwar.ru

France paid more than 1.1 billion euro for the failure to deliver Mistral helicopters to Moscow after the contract was put on hold by Paris over the Ukraine crisis, allegedly under the US pressure.

      The information has been revealed by the Kommersant daily. According to the newspaper, the amount included the advance payment made by Moscow and compensation for the expenses to remove the Russian equipment installed on the ship.

      Earlier, the Kremlin confirmed the Mistral row has been resolved successfully amid media buzz about the sum of compensation.

      According to a press release on the president’s official website, the due amount had been finalized between the Russian and the French side and transferred by Paris.

      The presidents confirmed that the issue has been sorted out in a phone call on Wednesday, says the statement.

      The French side will be able to use the helicopter carriers once it removes Russian equipment.

      Earlier, Russia-IC reported that the drama was nearing its end, citing Vladimir Kozhin, presidential aide on military and technical cooperation.

      Once the deal is inked, the amount of the fine will be made public. Yet this has not been done.

      Earlier, Russia warned France it would face fines if the Mistral helicopter carrier is not handed over.

      Earlier, France has refused to respond to the request sent by Russian officials over the handover delay of the Mistral helicopter carrier.

      According to a staff member of the Federal Service on the Military and Technical Cooperation, Russia needs an official document rather than verbal statements by politicians. But the French Defense Ministry reply by saying they don’t have the information available currently.

      Earlier, the Kremlin has declined to comment on the Mistral scandal.

      The president’s spokesperson said he would not comment the decision of France to suspend the delivery of the first Mistral-class helicopter carrier.

      Earlier, the government said it would wait patiently for the delivery of the Mistral-class helicopter carrier and refrain from sanctions for some time.

      The news came after France put the handover on hold, citing lack of progress on the ground in Ukraine.

      Russia agreed to wait until the end of November.

      In case the delivery doesn’t take place by the beginning of the winter, a provision outlined in the contract, Russia would seek damages in court.

      Earlier, the French defense minister confirmed the contract is valid but said the French shipbuilding corporation had not yet received the export permission from the government.

      Russia-IC reported that France had warned Russia it suspended the delivery of the first Mistral-class helicopter carrier to Russia over its alleged role in the Ukraine crisis.

      Russia then reminded France of the fines it would have pay if it falls through with its intention to cancel the deal to supply Mistral-class helicopter carriers to Moscow.

      Russian experts and officials estimate the losses at around 3 billion euros.

      The deal for two Mistral ships worth 1.2 bn euros was signed in June 2011.

      The helicopter carriers were expected to enter service with the Northern and the Pacific fleets in 2014 and 2015. It is planned to use the ships for the support of forces in the Kuril Islands.

      A Mistral-class ship is capable of carrying 16 helicopters, four landing vessels, 70 armored vehicles, and 450 personnel.

      In the past, France repeatedly insisted it will stick to the contractual provisions despite numerous calls from the US and other allies to cancel the deal.


      



       




Author: Mikhail Vesely

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