Iranian Ship Linked to Houthi Attacks Heads Home Amid Tensions
(Bloomberg) — An Iranian ship that’s been linked to Houthi attacks in the Red Sea is returning home, removing a prominent asset in the area as the Islamic Republic braces...
By Gregory Viscusi
(Bloomberg) — France and Russia have agreed to terminate a contract for two helicopter carriers that France built and then refused to hand over because of the conflict in Ukraine.
France has reimbursed the money Russia advanced for the Mistral-class warships and will return Russian equipment that had been installed, leaving France free to use or sell the vessels as it sees fit, according to a joint statement from both countries on Wednesday.
“This matter is now closed,” they said in the joint statement.
See Also: France the Clear Loser in Failed Warship Deal
No money amounts were revealed, and the price of the ships has never been officially announced. French newspapers such as Le Monde have reported it was a 1.2 billion-euro ($1.3 billion) contract.
The sale, signed by former President Nicolas Sarkozy in 2011 during a period of warming relations with Russia, became a policy dilemma for President Francois Hollande after France and its allies imposed sanctions on Russia in early 2014 for its actions in Ukraine.
Hollande initially announced France was simply delaying delivery of the first ship, due at the end of last year, later saying he was seeking to terminate the contract. The ships are sitting in a naval dockyard in Saint-Nazaire on France’s Atlantic coast.
Hollande and Russian President Vladimir Putin spoke by telephone on Wednesday to seal the agreement, the French leader’s office said. Putin said on April 16 that Russia wouldn’t demand payment of penalties for non-fulfillment of the contract.
The 199-meter (653-foot) warships are noted for their versatility, and can be quickly converted from helicopter carriers to hospital ships to control-and-command vessels. The ships built for Russia were named Vladivostok and Sevastopol.
About 400 Russian sailors trained on one of the ships late last year.
–With assistance from Olga Tanas and Scott Rose in Moscow.
©2015 Bloomberg News
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,983 members that receive our newsletter.
Have a news tip? Let us know.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign UpMaritime and offshore news trusted by our 105,983 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up