Posted on 10/01/2014 2:05:48 PM PDT by mac_truck
Russia is preparing legal action against France over the country's halt in the delivery of the Mistral-class landing helicopter dock (LHD) Vladivostok , Russian sources have told IHS Jane's .
"We hope that despite the repeated statements of the French party concerning the possible refusal to hand over in late October through early November Vladivostok , the first of the ordered ships, it will eventually be delivered to Kronstadt where it will get a superstructure and onboard weapons. Anyway, the Rosoboronexport lawyers have received orders to start preparing all possible claims against DCNS as a contractor," a source involved in implementing the Franco-Russian contract told IHS Jane's .
France postponed delivery of the first of two Mistral-class warships under construction for Russia in September as a result of the situation in Ukraine.
According to the source, if the contract is disrupted, the French party will have to pay Russia around EUR3 billion (USD3.8 billion). "The contract has an item concerning a possible direct refund if the French party fails to fulfil the signed agreement. In this case, DCNS's direct refund alone due to the Russian party will amount to EUR1.050 billion," the source stated.
"Moreover, the Russian party has the right to enforce, via court proceedings, imposition of extra fines on DCNS and refunding of its expenses on materials and other costs associated with transportation to and construction in France of two stern components for the LHDs Vladivostok and Sevastopol . Considering those penal sanctions and refunding of expenses, the Russian party may obtain, in case of a positive court ruling, another EUR1.8 billion," he added.
(Excerpt) Read more at janes.com ...
Nothing the US would like better than having countries shy away from France as a potential supplier.
They’re gonna sue France? In a French court?
Is someone else looking to buy the ships ?
The stern sections of the ships were apparently produced and assembled in St. Petersburg. The Russian position is the ships cannot be sold to a third party because the French do not own all of the component parts.
The French are annexing the French speaking part of the ships and keeping order on the Russian speaking sterns. All is swell!
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