Kremlin wants €1.163bn from France for undelivered Mistrals

Russia wants €1.163 billion from France in compensation for cancelling a contract to deliver two Mistral helicopter carriers, a Russian source close to the negotiations said yesterday.

French president François Holland has come under pressure from his western allies not to deliver the Mistrals because of Russia’s role in the Ukraine crisis.

He discussed the 2011 contract, worth €1.19 billion, with Russian president Vladimir Putin last month and Moscow said it was willing to accept financial compensation if Paris does not fulfil the deal. The source said Russia was eyeing €1.163 billion, confirming a report yesterday by Russian daily Kommersant, which also said Paris was offering to pay €785 million.

“The €1.163 billion figure is a touch below the value of the contract,” said the source.

The spokesman for the Kremlin reiterated yesterday that Russia was ready to accept financial compensation if France scraps the delivery and said the issue was not a major headache in relations between the two countries.

“The principle is the following – either the goods or the money,” the spokesman said. – (Reuters)