France will have to pay Russia a large compensation if it severs the contract for the construction and delivery of Mistral landing ships, ITAR-TASS says. Denis Manturov, the Russian Minister of Industry and Trade, said on Monday, April 28.
“They have to build them by the end of the year. We didn’t hear any official refusals. In case of any official rejection, we will charge them a huge compensation,” Manturov said.
On Monday, the US, Canada, and the EU agreed to introduce new sanctions against Russia. Canada’s list now includes two Russian companies and nine officials. The US list was expanded to 17 Russian companies and a bigger number of officials.
The EU’s sanctions will be announced on Tuesday, April 29, but it is already known that it will include 15 Russians to be banned from visiting the EU countries and whose accounts will be frozen.
Meanwhile, French President Francois Hollande said in early March that despite Russia’s actions in Ukraine, the contract remains valid.
France and Russia signed a contract worth of over $1 billion for the sale of two Mistral-class amphibious assault ships in 2011. The first vessel has to sail off to its base in October 2014.
