"If the vessels are not delivered, I see no reason for payment," Hollande said Wednesday, commenting on Russian President Vladimir Putin's remark that France was sure to refund the money it owed over the failed deal.
"All that I can say about the Mistral warships is that their delivery is still impossible under the present circumstances," Hollande added. "We do not deliver the Mistral warships at the moment, because France has no intention to sell lethal weapons."
The French president said the Mistral contract will be among the issues that he would raise at the forthcoming meeting with Putin in Yerevan, Armenia.
In 2011, Russia and France signed a $1.5-billion for delivery of two Mistral-class ships. Paris was to deliver the first ship by last November, yet failed to do so. Hollande stated that the non-delivery was due to Russia's alleged involvement in the Ukrainian crisis.
Earlier in April, Mistral manufacturer DCNS said that construction of the second helicopter carrier for the Russian Navy had been completed.
Moscow repeatedly stated that it was considering filing a lawsuit against Paris if it failed to fulfill its contractual obligations regarding delivery of the Mistral ships.
