FRANCE AND RUSSIA HAVE REACHED AN AGREEMENT TO TERMINATE CONTRACT SIGNED IN 2011

USPA NEWS - The President of the French Republic and President Putin held talks this afternoon to confirm that France and Russia have reached an agreement to terminate the contract signed in 2011 which included the delivery of two buildings and projection command (BPC)* Mistral type. Official Elysee

The French President Hollande and President Putin held talks this afternoon to confirm that France and Russia have reached an agreement to terminate the contract signed in 2011 which included the delivery of two buildings and projection command (BPC)* Mistral type."Under this agreement: - The Russian Federation is exclusively and fully reimbursed the sums advanced under the contract; - Russian equipment that were installed on the buildings will be returned; - France will have full ownership and free disposal of the two buildings. The President of the Republic and Vladimir Putin welcomed the friendly atmosphere of the partnership and open that marked the negotiations.--------------------------------------------------------------They agreed on the fact that now this matter was closed." Official Statement of Elysee BPC* Building and Projection Command

FROM THE RUSSIAN SIDE, PROBLEM OF MISTRAL SHIPS IS FULLY SETTLED“ SAID KREMLIN-------------------- According to The Kremlin press secretary Dmitry Peskov confirmed to TASS Putin and Hollande had attained agreement on the Mistrals.--------------------------------------------------------------In Moscow today, “Presidents Vladimir Putin of Russia and Francois Hollande of France have taken a joint decision to sever the agreement on construction and supplies to the Russian Navy of two amphibious helicopter carriers of the Mistral class that was signed in June 2011,“ the Kremlin press service said. "Moscow believes that the problem of the Mistral ships has been fully settled," it said in a report. In the course of expert negotiations that were held in the friendly key typical of Russian-French relations, the sides managed to reach a mutually acceptable agreement on reimbursement of the monies the Russian government had paid under the contract, as well as on a return of the equipment and materiel supplied by Russian manufacturers," the report said. "France has remitted the above-said monies and it will reacquire the right of ownership over the ships and will be able to dispose of them after the return of equipment," the press service said. Russia and France signed a contract for construction of two Mistral ships for the Russian Navy in June 2011. The first ship that was christened The Vladivostok was made waterborne in October 2013 and its handover to the Russian Navy was scheduled for November 2014 but Paris took an eleventh-hour decision to suspend the transition of the helicopter carriers under the pretext of the situation in Ukraine. The second ship of the Mistral class, The Sevastopol, was to be turned over to Russia in the first half of 2015. Source: Elysee, TASS,The Kremlin Press Service