Aug 9, 2023, 2:10 PM

Romania cancels $1.3 bn warships deal with France

Romania cancels $1.3 bn warships deal with France

TEHRAN, Aug. 09 (MNA) – Romania's defense ministry said late on Tuesday it has canceled a long-delayed deal to buy four warships from French firm Naval Group after the company and a junior partner failed to meet a deadline to sign a contract.

Defense firm Naval Group won the contract to build four Gowind navy corvettes for Romania and renovate two existing frigates for 1.2 billion euros ($1.32 billion) in 2019 in partnership with Romanian company Santierul Naval Constanta, Reuters reported.

But the deal was held up, first by legal challenges and then by the two companies failing to reach an understanding concerning rising costs.

Romania's navy is the least modernized of its military branches. The country is a NATO state since 2004 and an EU member since 2007.

The country, which shares a 650km (400-mile) border with Ukraine, hosts a U.S. ballistic missile defense system and, as of last year, has a permanent NATO battlegroup stationed on its territory led by France.

AMK/PR

News ID 204377

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