Wednesday, August 5, 2015

Hollande, Putin agree compensation for cancelled Mistral deal

President François Hollande's office announced Wednesday that a deal had been reached with President Vladimir Putin to pay Russia compensation for cancelling the delivery of two French Mistral warships over the Ukraine crisis.

Russia would be "fully reimbursed" for the two warships, the Elysée Palace said in a statement.

The Kremlin said compensation had already been received and that it now considered the matter "completely resolved".

“France has already transferred these funds and, after the return of equipment, will acquire ownership and be able to take charge of both ships,” the Kremlin said in a statement.

“Moscow considers the Mistral issue completely resolved.”

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

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

Putin in April downplayed the importance of the ships but insisted that the French side reimburse Moscow for "all expenses" if the contract were to be cancelled.

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 said the delivery of the ships would undermine their joint efforts to isolate Russia and condemn its annexation of Ukrainian territory.

Russia and the West are locked in their worst stand-off since the Cold War over the Ukraine crisis, with the EU and US introducing increasingly damaging sanctions on Moscow.

US President Barack Obama urged Paris in June to "press the pause button" on the warship deal with Russia.

France agreed in 2011 to build and sell the two advanced helicopter assault ships to Russia with the first one scheduled for delivery in October or November of last year and the second in 2015.

France’s naval industry considers the Mistral one of its engineering jewels, with the navy dubbing the ship the “Swiss army knife”.

It is designed to carry as many as a dozen assault helicopters, 60 armoured vehicles and a dozen tanks. It can also host up to 700 troops and has a full hospital on board.
(FRANCE 24 with AFP)

 france24.com
5/8/15
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1 comment :

  1. France makes mistake cancelling Mistral deal under pressure — politician...

    France has made a mistake succumbing to pressure from "some allies" and refusing to supply two Mistral helicopter carriers built for the Russian Navy to Russia, French politician, lawmaker from the Republicans opposition party Thierry Mariani said in an interview with the Le Figaro newspaper published on Monday.

    Answering a reporter’s question about the situation with the cancellation of the Mistral deal, Mariani, who led the delegation of French parliamentarians during its visit to Crimea last month, once again noted that he condemned the Elysee Palace’s refusal to honor the agreement. "Because this is a mistake," he said. We strictly abide by the sanctions regime - under pressure from some of our allies, in particular, the Americans. At the same time, other countries do perfectly well without them, above all, the Americans."

    According to the French politician, despite certain well-known diplomatic obstacles, some U.S. companies continue to develop fruitful cooperation with Russia. "An example to this effect is an agreement between Moscow and the U.S. Bell Helicopter on the construction of an assembly plant in Russia. Another example is a $490-million contract signed by NASA with the Russian Space agency on the very day when France cancelled the Mistral contract," Mariani said.

    As a result, "we have sanctions, and others have contracts," the parliamentarian noted. "It is absurd," he said. "Russia is affected by this situation, and so are we, and all this in no way changes the international situation. Nor does it affect the resolution of the Ukrainian crisis.".
    http://tass.ru/en/world/813400
    10/8/15

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