Connect with us

Hi, what are you looking for?

World

Russia agrees compensation deal with France over Mistral warships

-

Russia has reached a compensation deal with France for the non-delivery of two Mistral warships, a Kremlin aide has said, but Paris on Friday refused to confirm a final agreement.

The fate of the two Mistral helicopter carriers has plagued France-Russia ties for more than a year, following Paris' decision in November to put the 1.2-billion-euro ($1.3-billion) deal on ice as the West slapped sanctions on Moscow over its annexation of Crimea and alleged backing for separatist rebels in Ukraine.

"The negotiations are completely finished, everything has already been decided, both the time-frame and the amount," President Vladimir Putin's adviser for military and technical cooperation, Vladimir Kozhin, told state news agency RIA Novosti on Thursday evening.

"I hope we will sign the agreement on the termination of the contract as soon as possible," he added.

French Prime Minister Manuel Valls said Friday that Paris would speak about the matter "in a few days, in a few weeks."

The Vladivostok Mistral class warship ordered by Russia is seen docked at a shipyard in Saint-Nazair...
The Vladivostok Mistral class warship ordered by Russia is seen docked at a shipyard in Saint-Nazaire, western France in May 2014
Jean-Sebastien Evrard, AFP

"Important decisions on this matter will be made the end of the summer," Valls said.

French President Francois Hollande said on Monday that he would decide "in the coming weeks" whether or not to scrap the contentious contract to supply the two warships to Russia.

A French source close to the situation told AFP Friday that an agreement had indeed been reached but that some details still "needed to be finalised".

- Final deal 'in August' -

Hollande said earlier this year that the conditions for the delivery were "still not right" and suggested that only the full implementation of a tenuous ceasefire in eastern Ukraine could make Paris revisit the situation.

The first ship was due for delivery in 2014, while the second was to be delivered this year.

Russian President Vladimir Putin previously insisted that the French side must reimburse Moscow &quo...
Russian President Vladimir Putin previously insisted that the French side must reimburse Moscow "all expenses" if the contract was terminated
Sergei Karpukhin, POOL/AFP

The compensation could amount to some 1.16 billion euros ($1.27 billion) and a deal definitively inked in the first ten days of August, Russia's business daily Kommersant reported, citing unnamed sources.

In April, Russian President Vladimir Putin downplayed the importance of the ships but insisted that the French side reimburse Moscow "all expenses" if the contract were to be terminated.

A spokesperson of Dmitry Rogozin, Russia's deputy prime minister who oversees the defence industry, refused to comment on the deal on Friday, as did the country's state-owned military exporter.

France's training last summer of Russian sailors aboard the first Mistral ship in the French port city of Saint-Nazaire angered its Western partners, who claimed the delivery of the ships would undermine their joint efforts to isolate Russia and condemn its annexation of foreign territory.

Russia and the West are locked in their worst standoff since the Cold War over the Ukraine crisis, with the EU and US slapping damaging sanctions on Moscow.

Last June, U.S. President Barack Obama had urged Paris to "press the pause button" on its deal with Russia, which had been signed in 2011.

Russia has reached a compensation deal with France for the non-delivery of two Mistral warships, a Kremlin aide has said, but Paris on Friday refused to confirm a final agreement.

The fate of the two Mistral helicopter carriers has plagued France-Russia ties for more than a year, following Paris’ decision in November to put the 1.2-billion-euro ($1.3-billion) deal on ice as the West slapped sanctions on Moscow over its annexation of Crimea and alleged backing for separatist rebels in Ukraine.

“The negotiations are completely finished, everything has already been decided, both the time-frame and the amount,” President Vladimir Putin’s adviser for military and technical cooperation, Vladimir Kozhin, told state news agency RIA Novosti on Thursday evening.

“I hope we will sign the agreement on the termination of the contract as soon as possible,” he added.

French Prime Minister Manuel Valls said Friday that Paris would speak about the matter “in a few days, in a few weeks.”

The Vladivostok Mistral class warship ordered by Russia is seen docked at a shipyard in Saint-Nazair...

The Vladivostok Mistral class warship ordered by Russia is seen docked at a shipyard in Saint-Nazaire, western France in May 2014
Jean-Sebastien Evrard, AFP

“Important decisions on this matter will be made the end of the summer,” Valls said.

French President Francois Hollande said on Monday that he would decide “in the coming weeks” whether or not to scrap the contentious contract to supply the two warships to Russia.

A French source close to the situation told AFP Friday that an agreement had indeed been reached but that some details still “needed to be finalised”.

– Final deal ‘in August’ –

Hollande said earlier this year that the conditions for the delivery were “still not right” and suggested that only the full implementation of a tenuous ceasefire in eastern Ukraine could make Paris revisit the situation.

The first ship was due for delivery in 2014, while the second was to be delivered this year.

Russian President Vladimir Putin previously insisted that the French side must reimburse Moscow &quo...

Russian President Vladimir Putin previously insisted that the French side must reimburse Moscow “all expenses” if the contract was terminated
Sergei Karpukhin, POOL/AFP

The compensation could amount to some 1.16 billion euros ($1.27 billion) and a deal definitively inked in the first ten days of August, Russia’s business daily Kommersant reported, citing unnamed sources.

In April, Russian President Vladimir Putin downplayed the importance of the ships but insisted that the French side reimburse Moscow “all expenses” if the contract were to be terminated.

A spokesperson of Dmitry Rogozin, Russia’s deputy prime minister who oversees the defence industry, refused to comment on the deal on Friday, as did the country’s state-owned military exporter.

France’s training last summer of Russian sailors aboard the first Mistral ship in the French port city of Saint-Nazaire angered its Western partners, who claimed the delivery of the ships would undermine their joint efforts to isolate Russia and condemn its annexation of foreign territory.

Russia and the West are locked in their worst standoff since the Cold War over the Ukraine crisis, with the EU and US slapping damaging sanctions on Moscow.

Last June, U.S. President Barack Obama had urged Paris to “press the pause button” on its deal with Russia, which had been signed in 2011.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

World

US President Joe Biden delivers remarks after signing legislation authorizing aid for Ukraine, Israel and Taiwan at the White House on April 24, 2024...

World

AfD leaders Alice Weidel and Tino Chrupalla face damaging allegations about an EU parliamentarian's aide accused of spying for China - Copyright AFP Odd...

Business

Meta's growth is due in particular to its sophisticated advertising tools and the success of "Reels" - Copyright AFP SEBASTIEN BOZONJulie JAMMOTFacebook-owner Meta on...

Business

The job losses come on the back of a huge debt restructuring deal led by Czech billionaire Daniel Kretinsky - Copyright AFP Antonin UTZFrench...