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Russia-France Mistral dispute

Mistral deal on hold despite new Minsk agreements — French FM

France’s penalty may amount to around €3 billion if Paris fails to deliver the helicopter carriers

© AP Photo/Laetitia Notarianni

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PARIS, February 12. /TASS/. The deal on France delivering Mistral-type helicopter carriers to Russia remains on hold despite the new agreements on the settlement of the Ukrainian crisis reached during the Minsk summit overnight to Thursday, French Foreign Minister Laurent Fabius told the i-Tele TV channel.

Russia signed a €1.2 billion contract with France in June 2011. The contract stipulates construction of two Mistral class helicopter carriers for the Russian Navy. The first warship - the Vladivostok - was to be handed over to Russia in autumn 2014 but the French side postponed the delivery citing the conflict in Ukraine.

The second Mistral helicopter carrier - the Sevastopol - was floated out in November. Under the contract, the Russian Fleet is to receive it in 2015.

A source told TASS earlier that under the contract France is allowed to postpone the delivery of the first Mistral warship for three months, starting November 1, 2014.

Russia’s Deputy Defense Minister Yuri Borisov said in November Russia would be acting strictly in line with the contract and would file a lawsuit if the Mistral warship is not delivered.

France’s penalty may amount to around €3 billion, media reports said.

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