France has for
months resisted pressure from Washington and other allies to scrap the
1.2 billion euro ($1.58 billion) contract and in September said it would
only hand over the first carrier, the Vladivostok, if there was a
lasting ceasefire and a political settlement in Ukraine
.
With the situation
worsening on the ground in Ukraine, France has again come under fire
over the deal, while Moscow has tried to drive a wedge between Paris and
its allies on the issue knowing that failure to deliver the carriers
could damage France's image at a time when it is finalising other
military contracts.
"Today, the
conditions to deliver the Mistral aren't there," Valls told reporters.
"France honours its contracts, but France is a nation that counts, wants
peace in Ukraine and that makes sovereign decisions without anybody
from outside dictating how it acts."
An unidentified
Russian source quoted by state news agency
RIA on Friday said if the Mistral was not delivered by the end of November Moscow would seek compensation.
"We are preparing
for various scenarios. We will wait until the end of the month then we
will announce some serious claims," the unidentified Russian source was
quoted as saying.
Analysts were looking at various amounts of
compensation, the source said, adding that the sum would not be kept
secret.
French President
Francois Hollande said at the end of October he would make a decision
during November, but his defence minister, Jean-Yves Le Drian, told
parliament on Wednesday DCNS had not been given the necessary government
export licence.
"No date for
delivery can be fixed at this stage," he told lawmakers. "A definitive
decision will be taken when the time comes."
Europe and the
United States have imposed numerous rounds of sanctions on Russia for
its role in eastern Ukraine and EU foreign ministers will discuss
further sanctions on Monday.
Hollande is due to
meet Russian President Vladimir Putin on the sidelines of the G20
leaders summit in Australia this weekend.
"What's key - and
the president will discuss it with several leaders during the G20 - is
to rediscover the path to peace between Ukraine and Russia," Valls said.
"We're far from that today."
(Writing by John Irish; Editing by Grant McCool)