France Bills Australia for Submarine Order Cancellation

A French defense contractor will be sending a “detailed and calculated” bill to Australia after cancelling a multibillion-dollar submarine deal due to a new agreement that Canberra signed with the United States and United Kingdom.

Naval Group CEO Pierre Eric Pommellet said that his company will be billing Australia “in a few weeks”. He said that Australia discontinued the contract for their own benefit, which means the company is not at fault.

Pommellet added, “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 demobilization of infrastructure and IT as well as the redeployment of employees. We will assert our rights.”

Pommellet said that the AUKUS agreement angered France as they were uninformed about it, and had nullified France and Australia’s $66 billion deal for 12 diesel-powered submarines.

Australia has signed a trilateral pact with the U.S. and the U.K., known as AUKUS, that will deliver nuclear-powered submarines to the country.

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