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France to pay Russia $1.27 billion for breached ship contract Printer friendly page Print This
By Staff Writers, Sputnik
Sputnik
Friday, Jul 31, 2015

© AP Photo/ Laetitia Notarianni

France is rumored to have agreed to pay Russia 1.16 billion euros ($1.27 billion) as a compensation for refusing to deliver two Mistral-class amphibious assault ships built for the Russian Navy, the Kommersant newspaper reported, citing unnamed sources.

The exact amount of the compensation has been agreed upon during the talks between Russia's Deputy Prime Minister Dmitry Rogozin and French Defense Secretary-General Louis Gautier, the daily added. It covers the advance payment and additional costs Moscow incurred during crew training, creating infrastructure to station vessels in Vladivostok and developing four preproduction prototypes of the Ka-52K helicopters.

The stern sections built in Russia will not be taken down, according to the sources. Russia's Ministry of Defense is expected to return the end-user certificates after Paris pays the compensation. France will be able to sell the warships to a third party afterwards.

All issues, according to the Kommersant, could be settled in early August. Then Russian President Vladimir Putin and his French counterpart François Hollande will make an official announcement.

Earlier, on Thursday, Putin's aide Vladimir Kozhin said that Russia and France agreed the terms of the settlement of the $1.36-billion deal, including the schedule and the amount of compensation. On Friday, Kremlin spokesperson Dmitry Peskov said he had nothing to add to this information.

© SPUTNIK/ VITALY PODVITSKI End of the Road?


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