Russia Agrees Compensation Deal With France Over Mistral Warships

MOSCOW (AFP) - 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.

Date: 31 July 2015 - 21:54

News ID: ۱۶۶۳۰

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."
"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 finalized".
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.
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.