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Mistral warships compensation

July 31, 2015

Negotiations on compensating Russia for the non-delivery of two French Mistral warships have come to an end, Russian media have said. They claimed the two sides had agreed on how much money would change hands.

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Mistral warship
Image: J.-S.Evrard/AFP/Getty Images

Russian media reported Paris and Moscow had reached a compensation accord for the cancellation of the delivery of two French-made Mistral warships.

Following eight months of negotiations, there was no clarity on the amount that France must pay Moscow for the non-delivery of the helicopter carriers, a Russian official was quoted as saying by the state news agency RIA Novosti.

"The talks are already over; everything is already decided - both the timeframe and the sums," said Vladimir Kozhin, an adviser to Russian President Vladimir Putin.

Straining bilateral ties

Russian newspaper Kommersant reported Friday that Paris would have to pay almost 1.2 billion euros ($1.3 billion) for failing to supply the two Mistrals.

There were no immediate comments from French President Francois Hollande and DCNS, one of the main contractors building the warships.

The first ship was due for delivery in 2014, while the second was to be supplied this year.

France had gone back on the order after coming under pressure from his Western allies not to deliver any Mistrals because of Russia's perceived role in the Ukraine crisis.

In April, Putin had downplayed the importance of the ships, but insisted that France reimburse Moscow's expenses, if the contract were to be terminated.

hg/bre (AFP, Reuters)