Russia-France Mistral Talks Expected to Continue in June

Russia and France will discuss the deal for the delivery of two Mistral-class helicopter carriers built for the Russian Navy in June after negotiators failed to reach an agreement in May, a source told RIA Novosti.

"The Mistral talks will definitely continue. No specific date has been set for the next meeting since last round of talks yielded no results. Both sides have to get ready for the talks," a source said, adding that the negotiations would take place in June.

Last week, a French team visited Moscow but the mediators were unable to achieve any progress since France laid down "absolutely unacceptable" terms. According to a source familiar with the situation, the French insisted on the "annulment of bank accounts" among other things.

Russia and France signed a $1.3 billion deal for the delivery of two Mistral-class ships in 2011.

The deliveries were put on hold in late 2014 over Moscow's alleged involvement in the Ukrainian civil war. The Kremlin has repeatedly denied these groundless claims and pushed for peace in the war-torn nation.

Should France fail to deliver the ships, Russia is entitled to a full refund, as well as penalties. In total, Moscow reportedly seeks $1.29 billion compensation, which France does not want to pay.

Russia wants $890 million already transferred to France back, as well as a compensation for the purchase of the equipment and crew training. France is reportedly willing to pay some $870 million, a sum Moscow deems unacceptable.

The Mistral-Class Helicopter Carrier