In 2016, Australia entered into an agreement to purchase twelve conventional submarines to be built by the Naval Group. The deal has been estimated at SEK 570 billion.
In September last year, Australia’s then Prime Minister Scott Morrison suddenly announced that the country had instead chosen to conclude an agreement with the United States and the United Kingdom on the manufacture of nuclear submarines.
Naval Group, which is partly owned by the French state, had already carried out work for more than nine billion Swedish kronor when Australia broke the contract, according to the French Ministry of Defense.
France has called the breach of contract a betrayal and a stab in the back. The relationship between Australia and France has been frosty until the change of Prime Minister of Australia in May this year.