Russia to buy Mistrals for EUR 1.5 bln – Popovkin

04.03.2011 Procurement contract for two French Mistral class helicopter carriers and shipbuilding license for other two ships is evaluated at least as EUR 1.5 bln, said Russian deputy defense minister Vladimir Popovkin.

"The question is purchase of two ready-made Mistral class ships from French company DCNS and license for construction of two Mistrals in Russia; the overall contract cost is evaluated as at least EUR 1.5 bln", said Popovkin in the interview to Defense Industry Review.

He emphasized that Russia would buy from France two Mistral class assault landing ships with all navigational and technical equipment, including one of the key components – tactical control system (TCS).

"Contract on Mistrals provides delivery of TCS Zenith 9 along with the ships, although without license for its reproduction", Popovkin said.

According to him, two ships which are going to be constructed in Russia will be also equipped with TCS Zenith 9.

Deputy defense minister also said that some particular changes would be introduced in the ships' design. First, the flight deck will be constructed a bit higher due to sizes of Russian shipborne helicopters. Second, it is planned to use the carriers in northern latitudes and icy waters, so ship's board should be reinforced.

"However, this won't cause serious alternations in design and technical equipment. Expenses related with construction of the 4-ship series will be reduced", said Popovkin.

Meanwhile, some Russian media agencies reported on Thursday that Russian-French talks on Mistral sale had reached the deadlock, particularly, because of disagreements in price – the ships' cost may increase from EUR 980 mln to at least EUR 1.15 bln.

The source involved in negotiations reported to RIA Novosti in Dec 2010 that the first Mistral class ship for Russia would be constructed in France late in 2013 or early in 2014, the second one – late in 2014 or early in 2015. Russia's participation in the first ship will be 20%, in the second one - 40%. Afterwards, other two ships are supposed to be built in Russia under French license.

Presumably, the first ship would cost EUR 720 mln; the second one – EUR 650 mln. Russian-built ships would be constructed in Kronshtadt at new shipyards of JSC Admiralteyskie Verfi.

Director of World Arms Trade Analytic Center (WATAC) Igor Korotchenko said to RIA Novosti on Thursday that it was prematurely to draw any conclusions.

"It's a working process when the parties specify their positions and, naturally, protect their own national interests", the expert said.

Considering political background – the ships' sale decision was made at summit level – there's little doubt that the parties would compromise and finally tie a contract.

"Therefore, now it is essential to maintain full confidentiality and exclude any media leaks which hinder negotiations", said Korotchenko.

Assault landing ship Mistral has displacement of 21,000 tons; overall length is 210 meters; speed is over 18 knots; fuel range is up to 20,000 miles; crew is 160 plus 450 marines; air wing includes 16 helicopters, six of them can be simultaneously placed on the flight deck.