France Due to Pay Russia Over $1 Bln for Mistral Non-Delivery - Draft Bill
02:49 03.09.2015
France will have to pay over a billion of dollars in compensation to Russia for the termination of the contract to deliver two Mistral-class helicopter carriers.
MOSCOW (Sputnik) — France's compensation to Russia for the termination of the contract to deliver two Mistral-class helicopter carriers amounts to nearly 950,000 million euro ($ 1.1 billion), according to the draft agreement on contract termination.
In late August, the Elysee palace said that the exact sum to be paid by the French state to Russia over the Mistral non-delivery would be announced once the draft bill was introduced to the French parliament.
On Monday, a source in the Russian government told reporters that Paris had already transferred about one billion euro to Moscow, in compensation for the termination of the contract.
"The agreement provides…. the payment by the French Government to the Russian Government of the agreed amount of 949,754,849 euros," the text of the agreement published on the website of France's lower house of Parliament, the National Assembly, says.
The agreement was presented to the National Assembly on Wednesday, and will be reviewed in mid-September, according to local media.
Any disputes concerning the interpretation and application of the agreement would be settled through bilateral negotiations and consultations, according to the text.
As soon as the payment is made, France is free to operate the vessels, including reselling them to another country.
Last month, Paris and Moscow formally terminated the 2011 deal worth 1.2-billion-euro on the construction and delivery of two Mistral-class helicopter carriers. In November 2014, France suspended the contract, citing Moscow's alleged participation in the Ukrainian conflict.
© Sputnik
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