France OK to refund Russia if warship not delivered | Inquirer Business
Close  

France OK to refund Russia if warship not delivered

/ 12:31 PM April 23, 2015
French President Francois Hollande, right, speaks with Ukraine's President Petro Poroshenko during a meeting at the Elysee Palace in Paris, France, Wednesday, April 22, 2015. Poroshenko is set to discuss current developments in Ukraine with his French counterpart. (AP Photo/Philippe Wojazer, Pool)

French President Francois Hollande, right, speaks with Ukraine’s President Petro Poroshenko during a meeting at the Elysee Palace in Paris, France, Wednesday, April 22, 2015. Poroshenko is set to discuss current developments in Ukraine with his French counterpart. AP

PARIS, France — French President Francois Hollande has acknowledged for the first time that France will have to give Russia a refund if it doesn’t receive the Mistral-class warship whose delivery has been suspended last year because of the conflict in Ukraine.

“If you don’t deliver, you must refund. So far, the delivery of the Mistral is not possible,” Hollande said at a press conference Wednesday with Ukrainian counterpart Petro Poroshenko.

ADVERTISEMENT

A top French diplomatic official told journalists, including an AP reporter, that France has started negotiating refund payments in order to avoid paying financial penalties in case the deal is not fulfilled. He spoke anonymously because he was not authorized to disclose details of the negotiations with Russia.

BACKSTORY: Russian sailors leaving France without warship

FEATURED STORIES

 

 

Last week Russian President Vladimir Putin warned France that Russia expects its advance payments to be refunded if the ship isn’t delivered.

Hollande said the issue will be on the agenda of his meeting with Putin on Friday in Armenia, where they will attend commemorations of the centenary of mass killing of Armenians by Ottoman Turks in 1915.

The Mistral-class helicopter carrier was part of a 1.2 billion euros ($1.28 billion) deal that was supposed to be the biggest arms sale ever by a NATO country to Russia.

 

READ: French-made warship destined for Russia sets sail

ADVERTISEMENT

France suspended the delivery “until further notice” last year, but Russia has already paid a substantial part of the deal signed in 2011.

The Mistral-class vessels can carry 700 troops, 16 helicopter gunships and up to 50 armored vehicles. A second French-built warship which was part of the deal is due to be delivered to Russia later this year.

Both warships now float in a dock in the French port of Saint-Nazaire.

Subscribe to our business newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: arms deal, France, Francois Hollande, Mistral-class warship, Russia, Ukraine, warship
For feedback, complaints, or inquiries, contact us.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.