Romania cancels 1.2 bln euro warships deal with France's Naval Group
09/08/2023 07:19
BUCHAREST, Aug 9 (Reuters) - Romania's defence ministry
said late on Tuesday it has cancelled 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.
Defence 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.
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 modernised of its military
branches. The country, a NATO state since 2004 and EU member
since 2007, has ramped up its defence spending to 2.5% of GDP
this year in response to Russia's invasion of Ukraine.
The country, which shares a 650km (400-mile) border with
Ukraine, hosts a U.S. ballistic missile defence system and, as
of last year, has a permanent NATO battlegroup stationed on its
territory led by France.
($1 = 0.9110 euros)
(Reporting by Luiza Ilie; Editing by Andrew Heavens)
((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))