Report: France to pay no fine for Mistral deal to Russia-Hollande

PARIS, Aug 7 (PRIME) -- France will pay no fine for failing to fulfill a contract for two Mistral helicopter carriers to Russia, news agency France Presse reported late on Thursday quoting President Francois Hollande.

“The agreement does not envisage any punitive sanctions,” Hollande said during his visit to Egypt, adding that it is a good agreement for Paris.

France will repay Russia exactly the sum Moscow has paid and will reimburse some costs, including money for training crews of the two ships.

Paris will have no difficulty in finding a buyer for the two Mistrals, the president added.

Earlier on Thursday, Dmitry Peskov, spokesman for Russian President Vladimir Putin, said that France had fully paid compensation for the failed supply of Mistral helicopter carriers and cancelled the contract.

Media reported earlier that Moscow asked for a 1.1 billion euro reimbursement for France’s refusal to send two Mistrals over the Ukrainian crisis, while France agreed only on an 800 million euro penalty. The sum of compensation that was paid was not disclosed officially but business daily Kommersant reported citing sources that the sum stood at about 1.1 billion euros.

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