France offers Russia $865M to terminate Mistral deal

France has offered to refund about 785 million euros ($865 million) besides re-export rights for cancelling the Mistral amphibious assault ship deal with Russia, but the latter has demanded 1.163 billion euros ($1.32 billion).

According to Sputnik News, Moscow disapproves the motion since the costs and losses of Russia due to the breach of the contract are estimated at about 1.163 billion euros ($1.32 billion). Moreover, Russia does not intend to issue any re-export permit before the money is returned, according to Kommersant.

Russia and France sealed a $1.5-billion deal for two Mistral-class ships in 2011. The handover of the first ship was slated for November 2014, but the ceremony did not take place. French President Francois Hollande put the delivery on hold, citing alleged interference by Moscow in the Ukrainian crisis.

Presidents of Russia and France Vladimir Putin and Francois Hollande discussed the issue at a meeting in Yerevan, as the two attended the commemoration of the Armenian Genocide Centennial in the Armenian capital.