Russia, France signed the Mistral procurement contract

14.06.2011 Rosoboronexport and French corporation DCNS signed procurement contract on four Mistral class assault landing ships for Russian Navy on June 10 in Paris, reports La Tribune referring to official statement of French president Nicolas Sarkozy.

The parties have signed final agreement on four landing ships; two of them will be constructed in France, other two – in Russia, said Sarkozy at the press conference during G8 Summit in Deauville, France. According to him, the contract details have been already agreed, so the contract will be signed in the nearest two weeks, he added.

According to La Tribune, the helicopter carriers will cost EUR 1.2 bln; first two ships will be built by French shipyard STX in Saint-Nazaire, other two – by Russian JSC United Shipbuilding Corporation (USC).

The ships are to be equipped with tactical information system Zenith-9, writes La Tribune referring to undisclosed sources. However, Zenith-9 technology will not be transferred to Russia.

Expectedly, the contract will be signed by Russian Prime Minister Vladimir Putin who arrives in Paris on June 21 to attend the Le Bourget air show.

Meanwhile, neither Rosoboronexport, defense ministry nor USC have made official statements on the agreement signed, reports Kommersant newspaper.

The negotiations on the Mistral sale have been lasted for almost 2 years. For the first time it was officially reported on the future contract in Sept 2009. The talks started on March 2, 2010, but the parties signed an intergovernmental agreement only on Jan 25, 2011.

Numerous controversies complicated the course of negotiations. Basically, the disputable issues were the contract cost and technology transfer; in particular, combat control systems Zenith-9 and SIC-21. Russia declared intentions to buy two ships for EUR 980 mln with technology included. French party was sticking out for the price of EUR 1.15 bln.

The ouster of VADM Nikolai Borisov, Director of Naval Shipbuilding and Armament Department who had represented Russia at the Mistral talks brought some amendments into the negotiations.

Reference

Displacement of Mistral class helicopter carrier is 21,000 tons; max speed is 19 knots; fuel range is up to 20,000 nautical miles; crew is 160 plus 450 marines, 13 main battle tanks or 70 wheeled trucks; air wing includes 16 heavy helicopters or 32 light helicopters.