Russia, France struggle over Mistral contract

A Russian-French contract on the construction of Mistral class helicopter carriers for the Russian Navy is unlikely to be signed in the near future, a Russian deputy defense minister said.

Russia and France in January signed an intergovernmental agreement to jointly build two Mistral-class helicopter carriers at the STX shipyard in Saint-Nazaire, France. Another two are planned to be constructed later at the Admiralty Shipyards in St. Petersburg.

However, the sides have since experienced difficulties in agreeing the terms of the actual contract between Russian state-arms exporter Rosoboron export and French DCSN company.

"The negotiations have not been easy so far, I would even describe them as tough," Anatoly Antonov told reporters in Paris on Tuesday during a visit of Russian Defense Minister Anatoly Serdyukov to France.

"It is too early to talk about specific dates, and too many technical details have yet to be settled. The contract must be adapted to our conditions. Experts will have to do a difficult and skillful job to adjust all parameters of the future contract," Antonov said.

The official added that Russia prioritized the purchase of Mistrals with full technology transfer. The overall price of the contract was also a "big issue," he said.

According to Russian media, the initial talks in February reached an impasse after France increased the total price tag from 980 milllion euros to at least 1.15 billion euros for the first two ships to be built in France.

In addition, France insists on signing a separate contract for licensed construction of two Mistrals in Russia.

Antonov said Russia would not push for a quick conclusion of negotiations because their results must meet the interests and requirements of both sides.

A Mistral class ship is capable of carrying 16 helicopters, four landing vessels, 70 armored vehicles, and 450 personnel.

Russia plans to deploy the first two Mistral ships in the Pacific to protect the four Kuril Islands, which Russia has disputed with Japan since World War II.

Russia to buy Mistrals for EUR 1.5 bln – Popovkin

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 twoMistrals 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 TCSZenith 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.

Designing of Russian analog for Mistral would take 10 years – General Staff

Construction of a ship analogous to Mistral class helicopter carrier without foreign participation could take ten years, said Gen. Makarov, Chief of Russian General Staff at Thursday's press conference. 

"Our country would need at least ten years to design aMistral-like ship. Someone could create better arms in this period", Makarov said. 

That is why he offers to import the most advanced weapons and produce their analogs in Russia. "Otherwise we will only have to buy", he said. 

Makarov added that state arms procurement program implies RUR 23 trillion spendings till 2020. Previously, it was officially reported about RUR 21 trillion. 

Late in Dec 2010 Russia and France officially declared that the consortium consisting of United Shipbuilding Corporation (Russia) and DCNS (France) would construct two Mistral class ships in Saint-Nazaire (France) and other two – in Russia under license. 

Russian defense ministry issued the appropriate tender in Oct 2010. Russian vice premier Igor Sechin and French defense minister Alain Juppe signed an intergovernmental agreement late in Jan 2011. 

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

Provisionally, the first ship would cost EUR 720 mln, the second one – EUR 650 mln. In Russia, the ships will be constructed in Kronshtadt at new yards of Admiralteyskie Verfi specially built for Mistrals. 

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

First two Mistrals to be based in Pacific Fleet

First two Mistral class helicopter carriers built by French shipyards for Russia will be handed over to Pacific Fleet (PF), reported Wednesday RIA Novosti referring to a source in Russian defense ministry. 

Russian president Dmitry Medvedev meeting with defense minister Anatoly Serdiukov and minister of regional development Viktor Basargin underlined the necessity to provide military units deployed in the Kurils with advanced arms in order to secure Russia's outposts. Defense ministry will analyze demands for new arms till the end of February, Serdiukov said. 

"After completion and commissioning of Mistral class ships, it is planned to station them at Pacific Fleet", said the source in defense ministry. 

Besides, significant funds will be invested in infrastructure of military camps located in Eastern Military District. 

"A division deployed at the Kurils archipelago has not been transformed during military reforms in Russia. It is planned to re-equip and re-arm the division with advanced weapon systems", said the interviewee. 

The top-ranking Navy's official explained to RIA Novosti that the decision to deploy two Mistrals at Pacific Fleet was dictated by the significance of the region and the necessity to protect extended sea lanes from Kamchatka to the Kurils. 

In addition, operational strength of Pacific Fleet has not been renewed for a long time, said the official. "Unfortunately, wear and aging are typical problems for all Russian fleets, especially for PF", said the interviewee. 

We recall that the Central Navy Portal reported about possible basing of Mistrals in Vladivostok on Jan 12. 

Late in Dec 2010 Russia and France officially declared that the consortium consisting of United Shipbuilding Corporation (Russia) and DCNS (France) would construct two Mistral class ships in Saint-Nazaire (France) and other two – in Russia under license. Russian defense ministry issued the appropriate tender in Oct 2010. Russian vice premier Igor Sechin and French defense minister Alain Juppe signed an appropriate intergovernmental agreement late in Jan 2011. 

RIA Novosti reported in Dec 2010 referring to a source involved in negotiations that the first Mistral class ship for Russia would be constructed in France late in 2013 (early in 2014), the second one – late in 2014 (early in 2015). Russia's participation in the building of the first Mistral will be 20%, the second one – 40%. Two other ships are to be constructed in Russia under French license. 

Provisionally, the first ship would cost EUR 720 mln, the second one – EUR 650 mln. In Russia, the ships will be constructed in Kronshtadt at newly built yards of Admiralteyskie Verfi. 

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

Mistral components can be delivered to Russia for assemblage early in 2013

Sections of Mistral class helicopter carrier would be possibly delivered to Russia for further assemblage early in 2013, reports ARMS-TASSreferring to a representative of French shipbuilding company STX; being a part of international consortium, STX will participate in construction of two Mistral class ships in France and deliver constituent sections for further assemblage of two ships in St. Petersburg. 

As is known, the agreement on construction of Mistral landing ships was signed on Jan 25 in France. The document was endorsed by Russian vice premier Igor Sechin and French defense minister Alen Juppe. 

The ceremony was held in the presence of French president Nicolas Sarkozy at Saint-Nazaire shipyards, France. 

At present, negotiators determine scope of works for French and Russian parties. In particular, STX will construct about 80 per cent of the first ship and somewhat 60 per cent of the second one for further completion in Russia. Both ships will be delivered in sections to the United Shipbuilding Corporation which will be assembled, equipped and armed in St. Petersburg.