France to Pay Under €1 Bln for Termination of Mistral Contract With Russia

© Sputnik / Alexei DanichevMistral Helicopter Carrier
Mistral Helicopter Carrier - Sputnik International
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France will pay less than one billion euro for the cancellation of the contract to deliver two Mistral-class helicopter carriers to Russia.

Vladivostok amphibious assault ship of the French Mistral class in the docks of SNX France - Sputnik International
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PARIS (Sputnik) — France will pay less than one billion euro ($1.1 billion) for terminating the contract on the delivery of two Mistral-class helicopter carriers to Russia, French Finance Minister Michel Sapin said Friday.

According to earlier media reports, France was set to pay around two billion euro.

"You ask me whether it is two billion. My answer is no… this number will not exceed one billion," Sapin told France Inter radio, adding that the Mistral deal termination would be reviewed by France's Council of Ministers by the end of August.

Moscow and Paris signed a 1.2-billion-euro agreement for the purchase of two French Mistral-class helicopter carriers in 2011.

In November, Paris suspended the delivery of the first ship, citing Moscow's alleged participation in the Ukrainian conflict. Moscow has repeatedly denied the allegations.

The Sevastopol amphibious assault ship of the Mistral class at the STX Europe shipyard in Saint-Nazaire. - Sputnik International
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Moscow and Paris formally terminated the contract earlier this month. France has promised to reimburse Russia the entire sum that it paid for the ships, while French Defense Minister Jean-Yves Le Drian later said that the refund would amount to less than the original price.

After the deal was cancelled, Kremlin announced that Paris would be able to use the ships as it saw fit after the Russian equipment was removed from them.

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