French naval shipbuilder DCNS is spending a minimum of $1.1 million a month to maintain two Mistral helicopter carriers as the deal to deliver them to Russia was cancelled.
It is uncertain what should be done with the ships since French President Francois Holland was forced from Western allies not to deliver the ships because of Russia's role in the Ukraine crisis.
The costs of keeping the warships in good condition while their future is discussed at a diplomatic level are being absorbed by DCNS, 35-percent owned by defence group Thales and 64 per cent by the French state.
But the shipbuilder may try to recover the costs from French export insurance agency Coface once the governments reach a decision, DCNS Chief Executive Herve Guillou was quoted as saying during a press conference in Paris on Thursday.
"It is upwards of one million euros a month," Guillou added.
The costs could rise as long as the warships are left idle, forcing DCNS to replace few of their onboard systems to keep them up to date, he said. Moreover, Russia is seeking about US$1.2 billion in compensation for a cancellation of the deal.
France has denied rumors of a possible sale of two Mistral-class amphibious assault ships to China. French Minister of Defense Jean-Yves Le Drian denied the wide spread speculation of possible arms sales to China after a joint news conference with US secretary of Defense Ash Carter at the Pentagon on Monday
France is set to supply 23 H145 multipurpose Airbus helicopters for border patrols for 500 million euros (560 million dollars) to Saudi Arabia. Saudi Deputy Crown Prince and Defense Minister Prince Mohammed Bin Salman met with French officials on Wednesday
Singapore Airshow 2016 will welcome France as the Feature Country in the fifth edition of the show, scheduled to take place from 16 to 21 February 2016, at the Changi Exhibition Centre. The Feature Country series, which made its debut at the 2014 Airshow, was developed as a permanent feature to enable the countries exhibiting within the pavilion to leverage on the Singapore Airshow as a strategic platform; lending support to businesses of the Feature Country and enabling them to tap into the opportunities in the Asia Pacific region and beyond
The French Defense Procurement Agency (DGA) has selected a joint venture from PIRIOU and DCNS, KERSHIP to supply four Offshore Patrol Vessels for the Navys offshore support and assistance program. The French Navys Bâtiments de Soutien et dAssistance Hauturiers (BSAH) or offshore support and assistance program also includes associated maintenance
France on Tuesday has transferred more than 1 billion euros to Russia in compensation for non-delivery of Mistral-class amphibious assault ships. “All financial issues concerning the Mistral helicopter-carriers, which France refused to deliver to Russia, have now been settled in full,” Interfax quoted a military-diplomatic source as saying on Tuesday
The DCNS FREMM frigate Tahya Misr has joined a naval fleet of Egyptian Navy during the inauguration of Suez Canal expansion on Thursday. The frigate was delivered on June 23rd
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