French Sub Builder To Send Australia Invoice 'in A Few Weeks'
Faizan Hashmi 1 month ago Thu 23rd September 2021 | 10:10 AM
Paris, Sept 23 (UrduPoint / Pakistan Point News - 23rd Sep, 2021 ) :France's Naval Group said Wednesday it will send a "detailed and calculated proposal" to Australia in the coming weeks of the costs it expects Canberra to pay for scrapping a massive contract to purchase French submarines.
Australia in 2016 agreed to buy 12 diesel-powered submarines built by Naval Group in a deal dubbed the "contract of the century" worth Aus$50 billion ($36.5 billion, 31 billion euros), later revalued to 56 billion euros.
However last week Australia ditched the deal in favour of nuclear-powered submarines from the United States and Britain, in a secretly negotiated agreement that infuriated Paris and sparked a diplomatic row.
"Australia terminated the contract for convenience, which means that we are not at fault," he said.
"It is a case that is planned for in the contract and will require a payment of our costs that were incurred and those to come, linked to demobilisation of infrastructure and IT as well as the redeployment of employees," he added.
France's defence ministry has said Naval Group has already started talks about a financial settlement with Canberra.
But calling the pullout "a betrayal", the ministry said the talks would now determine the size of "compensations and damages" owed by Australia.
Pommellet told Le Figaro that "this decision was announced to us without any prior notice, with unprecedented brutality."