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France pays Russia 949.7 mln euro in compensation for non-delivery of Mistral helicopter carriers
Thursday, 03 September 2015 12:38

The precise compensation paid to Russia for the non-delivery of two Mistral helicopter carriers by France stands at 949.754 million euro.

According to the Rossiya 24 channel, that sum was indicated in the agreement terminating the deal between Paris and Moscow which has been presented to the French National Assembly.

"France shall pay the Russian Federation 949,754,859 euro to compensate for the non-performance of obligations under the contract for the construction of landing ships dated January 25, 2011," says the document signed by Secretary General of the French Secretariat General for National Defense and Security Louis Gautier and Russian Deputy Prime Minister Dmitry Rogozin.

The document terminating the deal, which was signed on August 5, 2015, underlined that France had no right to sell or re-export the ships to a third party in any way until Russia "was paid full compensation and regained the equipment" previously installed onboard the Mistral ships on the orders of Moscow. The French National Assembly Foreign Affairs Committee is due to hear the agreement on September 15, the day after the parliament starts an extraordinary session.

A contract between France and Russia for building two Mistral helicopter carriers for the Russian Navy was signed in summer 2011. The first ship, the Vladivostok, was launched almost two years ago and was expected to be delivered to Russia in 2014. The other ship, the Sevastopol, was due to be supplied to Russia in the second half of 2015. Yet Paris said last fall that it would delay the delivery of the helicopter carriers to Russia because of the Ukraine situation.

The largest French opposition party, the Republicans, demanded that a parliamentary commission be formed to look into the case before the government published details of the contract termination. The inquiry was initiated by the Republicans' defense issues representative Philippe Meunier and the party's national secretary for defense industries Philippe Vitel.

Read more: Russia may offer helicopters to prospective buyers of Mistrals>>>

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