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France to lose 250 million euros on Mistral resale deal with Egypt

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Staff writer ▼ | September 30, 2015
According to the French Senate Finance Commitee, the country's budget is set to lose about 250 million euros on the deal to sell two Mistral ships originally built for Russia to Egypt.
Mistral ship
Defense industry   According to the French Senate Finance Commitee
"If the agreement with Egypt to resell the ships is implemented, it will cost the nation's budget 200 to 250 million euros," the committee's statement reads.

This is in stark contrast with last week's statement by French president Hollande that the nation would not bear any costs from the deal with Egypt. "A decision was made to provide the Mistrals to Egypt, we agreed with President Sisi on the terms and the price. France will not bear any financial costs from this agreement," he told reporters.

France and Russia terminated a $1.3-billion contract last month following Hollande’s suspension of the warships’ deliveries late last year over the Ukrainian conflict.

Paris repaid Moscow around $1 billion as compensation for breaching the contract.