Russia State Arms Exporter Profits From Mistral Ship Contract Cancellation

Rosoboronexport has been fully reimbursed by France for the cost of constructing two Mistral-type warships and even profited from the contract's termination.

MOSCOW(Sputnik) — Russia’s Rosoboronexport state arms exporter has been fully reimbursed by France for the cost of constructing two Mistral-type warships and even profited from the contract's termination, the company's director general Anatoly Isaykin said Monday.

“France has fully refunded the costs of construction of the Mistral-type helicopter carriers. The euro then was worth some money, now it costs almost twice as much. In ruble terms, our [Russian] companies got some more [than they spent]," Isaykin said, speaking on the Rossiya-24 television.

In June 2011, Rosoboronexport and the French DCNS naval defense company signed a contract for two Mistral amphibious assault ships and related services, including logistics, personnel training and technology transfers.

Under the 1.2-billion euro contract ($1.35 billion at the current exchange rate), Russia was to receive the first of the ships in 2014 followed by a second in 2015.

In May 2015, France proposed to terminate the contract with Russia, citing Moscow’s alleged involvement in the Ukrainian internal conflict.

After Russia and France terminated their contract in August, Moscow received around $1 billion in compensation.