Delay in ‘Mistral’ deliveries causing France ‘significant cost’ - reports

Delay in ‘Mistral’ deliveries causing France ‘significant cost’ - reports
The delay of the Mistral warships’ delivery to Russia “until further notice” has reportedly entailed additional costs for French ship-builders STX.

The Mistral has been docked for a week, and STX has a big bill to cover, a union source told AFP.

Renting the dock was initially included in the cost of the ship, but now that it’s stored, there is “an extra cost which was not at all expected.”

STX refused to comment on the amount of the additional costs.

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RIA Novosti/Grigoriy Sisoev

On Tuesday, President Francois Hollande said that “the situation in eastern Ukraine still doesn’t allow for the delivery of the first Mistral.”

In response, Russian Deputy Defense Minister Yury Borisov said the government would patiently wait for the fulfillment of the contract.

However, Russia will act “strictly according to the contract,” and will sue France should the ship not be delivered at all, Borisov added.

France has already missed a mid-November deadline for transferring the first of the amphibious assault vessels to Russia.

The €1.12 billion ($1.6 billion) contract for two Mistral-class ships was signed in June 2011.