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France may be obliged to pay 3 billion Euros for Failure to Mistral Contracts

President’s Hollande decision may cost France a lot.

27.Nov.14 3:28 PM
By Roman Skvortsov


France may be obliged to pay 3 billion Euros for Failure to Mistral Contracts
If France refuses to meet all requirements and obligations prescribed by the Mistral contracts on supply of two military helicopters, it will be obliged to pay compensation. The amount of this compensation is approximately 3 billion euros. The information has been provided by Le Parisien French newspaper with the reference to their experts’ opinion.

Unknown expert shared his ideas with journalists of Le Parisien. He is well-known in diplomatic society. He said that Russia has all rights to require 800 million euros per every Mitral contract as compensation of failure to each of them. The total cost of compensation is about 3 billion euros. It includes the cost of contracts which is 1.2 billion euros and compensation of two helicopters which is 1.6 billion euros.

President Hollande has made an official statement on the 25th of November and said that supplies of helicopter carriers will be stopped due to current situation in Ukraine. The first Mistral supposed to be supplied to Russian Navy on the 14th of October. However France hasn’t still completed the operation. At the same time they also failed to another contract which obliged France to supply the first vessel called “Vladivostok” by the end of 2014. The deadline has been postpones and it is still unclear at the moment. Moscow is not planning to take any drastic measures at the moment. They still hope that France will eventually complete all its obligations on all contracts.

US representatives influenced decision of French president greatly. They persisted on failure to the contract signed with Russian Federation. In other words if France will complete all obligations on the contract, it will spoil its relations with the United States.

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