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France May Demand Compensation From Australia for Submarine Deal Breach, Defence Minister Says

© AFP 2021 / MYCHELE DANIAUScorpene-class diesel submarine. File photo
Scorpene-class diesel submarine. File photo - Sputnik International, 1920, 16.09.2021
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MOSCOW (Sputnik) - Paris may demand compensation from Canberra for its withdrawal from the $66 billion submarines agreement with France's Naval Group shipbuilder, French Defence Minister Florence Parly said on 16 September.
Earlier in the day, French Foreign Minister Jean-Yves Le Drian strongly condemned Australia's withdrawal, branding it as a "stab in the back" and the betrayal of the mutual trust between the countries.
"We are examining all options," Parly told the RFI broadcaster when asked if France would demand compensation from Australia.
Paris will make everything possible to minimise the financial losses after the breach of the contract, she added.
Australia decided to abandon the deal with France in favor of the cooperation with the United States and the United Kingdom under the newly-established AUKUS alliance, announced late Wednesday.
The supply of nuclear-power submarines for the Australian navy will be the first major project within the alliance.
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