Germany backs France on Russia warship contract

BRUSSELS - Germany has defended France’s plan to deliver a warship to Russia in October despite US criticism of the move.

Chancellor Angela Merkel said on Wednesday (4 June) in Brussels that interruption of delivery might only come if the EU adopts “stage three” sanctions - economic sanctions - against Russia.

But she said the EU is not launching stage three because Russia did not stop Ukraine’s 25 May presidential elections from going ahead.

“The question of exports to Russia falls under stage three. About when to trigger stage three, if there is more destabilisation we have agreed, also myself bilaterally with the US President, that if elections take place we won't trigger stage three. We see elections have taken place successfully, but that there were also negative elements of destabilisation [in east Ukraine],” she noted.

http://euobserver.com/foreign/124498

Obama warns France on Russia Mistral ship deal

President Barack Obama has said he has told France of his concerns about the sale of two warships to Russia in the light of the crisis in Ukraine.

The first carrier is due for delivery this year in a 1.2bn euro (£1bn; $1.6bn) deal signed in 2011.

Mr Obama said while he recognised it was a big deal and important for French jobs, "I think it would have been preferable to press the pause button".

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A foreign ministry spokesman said a contract had been signed and had to be honoured.

http://www.bbc.co.uk/news/world-europe-27722256