{"id":60782,"date":"2015-09-12T21:13:57","date_gmt":"2015-09-12T21:13:57","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/09\/12\/french-offical-russian-systems-may-stay-aboard-mistrals-if-egypt-buys\/"},"modified":"2026-08-08T00:31:33","modified_gmt":"2026-08-08T00:31:33","slug":"french-offical-russian-systems-may-stay-aboard-mistrals-if-egypt-buys","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/naval\/2015\/09\/12\/french-offical-russian-systems-may-stay-aboard-mistrals-if-egypt-buys\/","title":{"rendered":"French Offical: Russian Systems May Stay Aboard Mistrals if Egypt Buys"},"content":{"rendered":"\n<p>PARIS \u2014 Moscow has signaled that Russian equipment <span class=\"rte rte-comment\">supplied and<\/span> fitted on the two Mistrals that were built for Russia\u00a0could stay on board if Egypt, the leading prospective buyer, bought the helicopter carriers, a French official said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Russia could accept India and Egypt receiving the equipment,&#8221; with Cairo the prime candidate for buying the warships, the official said Sept. 7. Russian authorities &#8220;let it be known&#8221; in negotiations with French officials about the cancellation of\u00a0the 2011 sale contract.<\/p>\n\n\n\n<p>Paris and Moscow agreed Aug. 5 that France will repay <span class=\"rte rte-comment\">French repayment of<\/span> \u20ac949.7 million (US $1.1 billion) to cancel the controversial naval deal. Some \u20ac56.7 million of that <span class=\"rte rte-comment\">total<\/span> amount covered Russian telecommunications and missile control systems, and crew training.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">France promptly and fully repaid back Russia as there was concern the former shareholders of the Yukos oil firm could attempt to seize the warships as part of a US $50 billion claim against Russia, the official said.<\/p>\n\n\n\n<p><span class=\"rte rte-comment\">Meanwhile,\u00a0member of parliament\u00a0<\/span>Fran\u00e7ois Cornut-Gentille, a\u00a0member of France&#8217;s parliament,\u00a0has written to Finance Minister Michel Sapin asking for full details of the repayment, which has been made.<\/p>\n\n\n\n<p>A release of the naval equipment would help Russia keep close links with Egypt, the Frence official said. Moscow is also keen to maintain ties <span class=\"rte rte-comment\">to<\/span> with Syria and Iran.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Riyadh would finance Egypt&#8217;s purchase of the Mistrals as Saudi Arabia lacks a maritime culture and the Egyptian Navy would serve as a &#8220;proxy&#8221; naval force for the Saudis, the official said. \u00a0There is Saudi concern over a perceived threat in Yemen and from Iran, which drives Riyadh to fund a build-up of Egyptian capability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Russia also wants to stay close to India, which has agreed to a co-production of the Russian Ka-226 helicopter for the Indian military. The two countries are seeking to resolve differences on developing and building the Fifth Generation Fighter Aircraft.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Repayment Details<\/strong><\/p>\n\n\n\n<p>France promptly and fully repaid\u00a0<span class=\"rte rte-comment\">back<\/span>\u00a0Russia as there was concern the former shareholders of the Yukos oil firm could attempt to seize the warships as part of a US $50 billion claim against Russia, the official said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Paris swiftly repaid \u20ac950 million and received proof of payment as there was concern the former stockholders of Yukos, a Russian oil company declared bankrupt, might try to seize the ships as part of a $50 billion claim against Moscow, the French official said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tim Osborne, head of GML, the former holding company of Yukos Oil, declined comment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is far from certain such a claim would have worked as the Mistral would have been classed as &#8220;navire d&#8217;\u00e9tat,&#8221; or ship of the state, a legal status which puts military vessels out of reach, a lawyer said. An alternative might have been a commercial claim for the funds paid to Russia.<\/p>\n\n\n\n<p>In other financial disputes, there have been attempts to seize ships as assets.\u00a0In 2012, a US hedge fund asked the Ghana courts to seize an Argentine Navy three-masted training ship in a claim for repayment of Argentine debt, <span class=\"rte rte-comment\">university professor [[WHICH UNIVERSITY?]]<\/span> Jean-Paul Pancracio, a Paris-Sorbonne University professor, wrote in a January 2012\u00a0blog entry.<\/p>\n\n\n\n<p>In 2000, a Swiss company sought a legal order to seize the Sedov, a Russian <span class=\"rte rte-comment\">sailing <\/span>ship which sailed to France to take part in a display of tall-masted vessels, according to the International Law Office website. The company also tried to seize bank accounts held in France by the Russian embassy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cornut-Gentille, who sits on the parliamentary finance committee, has written to Sapin asking for details of the repayment to Russia.<\/p>\n\n\n\n<p>The government\u2019s draft bill submitted to parliament says there will be no economic impact on French companies, which are covered by the Coface export credit agency.\u00a0What is the extent of that coverage and what is the procedure for that cover, <span class=\"rte rte-comment\">the member of parliament<\/span> Cornut-Gentille\u00a0has asked.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Coface reimburses DCNS for repaying the advance payment of \u20ac893 million, and the French government has sent \u20ac56.7 million for the Russian systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among other questions from Cornut-Gentille:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022 When and how was the payment to Russia made or will be made?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022\u00a0What effect will the payment have on the 2015 budget, and will it be raised by canceling missions or programs?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022\u00a0If there are no cancellations, then how will the payment be financed?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sistemy Upravleniya designed and built telecommunications and missile control systems for the Russian\u00a0Mistral, Tass news agency has reported.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">DCNS was prime contractor for the Vladivostok and Sevastopol, held at Saint-Nazaire, northwestern France. DCNS, which is 35 percent held by Thales, declined comment.<\/p>\n\n\n\n<p>France and Russia reached an agreement Aug. 5 to cancel the \u00a0\u20ac1.2 billion\u00a0Mistral deal<span class=\"rte rte-comment\"> worth \u20ac1.2 billion<\/span>, with Paris free to resell the ships and simply inform Moscow of any deal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Egypt bought a $5.2 billion French arms package comprising a DCNS multimission frigate, four Gowind corvettes and 24 Rafale fighter jets, along with MBDA and Sagem missiles, and is in talks for acquiring two more corvettes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">India is in talks with France on an off-the-shelf order for 36 Rafales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Russian deputy prime minister and France&#8217;s secretary-general for national defense and security exchanged letters on Aug. 5 setting out the terms which allowed their respective heads of state to approve the contract cancellation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: <a href=\"mailto:ptran@defensenews.com\">ptran@defensenews.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moscow has signaled that Russian equipment supplied and fitted on two Mistrals could stay on board if Egypt buys the ships, a French official said.<\/p>\n","protected":false},"author":7,"featured_media":116353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":16,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[33,16],"tags":[],"coauthors":[464],"class_list":["post-60782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","category-naval"],"acf":{"subheadline":"","legacy_arc_id":"72UZH6PF4VA3LIEXYM3VJGVJAY","arc_canonical_url":"\/naval\/2015\/09\/12\/french-offical-russian-systems-may-stay-aboard-mistrals-if-egypt-buys\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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